Unemployment debt: The third type of debt that the IRS can use your tax refund to pay down, unemployment compensation debt racks up when you are, for whatever reason, overpaid when receiving unemployment payments and are required to pay back some or – yikes – all of the money you received.

Since the start of tax season, the IRS has issued more than $100 billion in tax refunds to Americans, with the average refund amount rising compared to 2024.

The 2025 tax season in the United States commenced on February 19 and will run until April 15. During this period, taxpayers are expected to file their returns with the IRS. This year, the average tax refunds are notably 32.