The IRS began processing tax returns Monday. For filers who submit their returns electronically using direct deposit, refunds are generally issued in less than 21 days. There is a caution from the tax agency, however, that urges “taxpayers not to rely on receiving refund by a certain date, especially when making major purchases or paying bills.

As Tax Day approaches on April 15, 2025, many Americans may find themselves with an unexpected tax refund. Understanding the reasons behind these refunds and how to effectively use them can significantly enhance your financial well-being.