Where Is My Tax Refund?

Are you counting down the minutes until you get that notification that your tax refund has been deposited? Why isn’t it here now? Maybe this is the first year you actually applied for a refundable credit and are asking yourself “where is my tax refund?” every hour of the day. Well, we’re glad to tell you that it’s going to arrive sooner than you’d expect, but how soon? Let’s dive into IRS timetables and processing periods.

Let’s open with this; it’s important to understand the tax refund process because not only will you avoid stressing out wondering if it’s been delayed, but also because it can help you make the best out of a credit you qualify for. It’s also important to learn where you can check if your refund has both been approved and sent, so that you don’t fall prey to scammers who are just looking to get their hands on your financial information.

What Tax Refunds Really Are

Just as a quick reminder, let’s go over refunds themselves. The IRS defines them simply as “if you paid more through the year than what you owe in tax, you may get money back.” Now, there’s beauty in brevity, but let’s expand a bit more on that; many taxpayers are aware of the whole “pay too much, get excess back” nature of tax refunds, but many still treat them as a nice bonus or just a lucky break during a time of year when money is tight.

Refunds might also come from refundable tax credits, which are a class of tax credit that can lower your tax bill below $0, and then turn the difference into money in your favor. These are perhaps the only type of refund that isn’t actually just your own money being handed back to you, so keep those in mind as we go further into refunds!

Reasons Why You’re Getting A Refund

While it’s exciting to get a refund, you should know where it’s coming from and why it’s the amount that it is so that you’re not walking away feeling like you’re ahead when you’re just being given what you’re due. Here are the most common reasons why you’re getting refunded:

• You likely made an error (whether voluntarily or involuntarily) when filling out your W-4 Form, the one that tells your employer how much of your wages to hold for tax purposes. Some people choose to fill out this form to have a higher withholding rate and therefore get a larger refund after filing their taxes.
• You didn’t update your W-4 to reflect major life events (like having a kid) which means that you’re essentially forgoing your child tax credit (CTC).
• If you’re a freelancer or are otherwise self-employed, you might have chosen to overpay on your quarterly estimated taxes to save you the trouble of getting hit with underpayment penalties for whatever reason.
• Finally, the sweetest deal of all; you might get a tax refund because your refundable tax credit was approved by the IRS, meaning that your tax liability was reduced to below $0. The difference is what’s being refunded to you.

How To Check The Status Of Your Tax Refund

There are several tools available for U.S. taxpayers who want to know when their tax refund is coming. Perhaps the best and most convenient tool is the IRS’s own “¿Dónde está mi reembolso?” online tool. You can start using it as soon as 24 hours after you e-file your tax return or four weeks if you choose to mail a paper tax return.

To use the “Where’s My Refund?” tool, you will need some of your personal information into it. It can be either your Social Security Number (SSN) or your Taxpayer Identification number (ITIN), the same filing status you used on your tax return, and the exact whole dollar amount of the refund you’re expecting. Once you’ve used the tool to check the status of your refund, you really don’t have to keep refreshing or trying to get a different answer for the day; the tool gets updated daily, so doing it once per day is enough.

Using the tool is extremely simple. First of all, have your tax return information at hand, because all the information you’re going to need is right there. Then, all you have to do is go to the tool’s page and enter your SSN or Taxpayer Identification Number (make sure it matches the one on your tax return exactly). Then select the filing status on your return from the options shown in the tool. Finally, you enter the refund amount that’s shown on your return, and presto, you’ll get your refund status on the screen.

Factors That Affect The Timing Of Your Refund

There are several factors that affect how long you’ll have to wait for your refund to be processed and sent, some of them you can influence, while others are simply out of your control. Let’s go over some of the biggest factors that play a role in the timing of your tax refund:

Filing Method

Paper filing vs. e-filing your taxes is still a discussion for many, many taxpayers in the U.S., but learning that one makes your refunds get processed a lot faster might just be what converts the nonbelievers out there. Electronic filing is simply a faster, more convenient option if you want to see your refund being delivered as soon as possible; if you e-filed your tax return (and chose direct deposit to receive it), it will usually take between 8 and 15 days to get your refund.

On the contrary, filing a paper tax return means that you’ll be waiting for six to eight weeks to receive your refund, and that’s from the date when the IRS receives your packet, not from the date you mailed it.

Errors Or Incomplete Returns

Any mistakes you made while filing your tax return will catch the eye of the IRS and that will most likely delay the whole process, not just your refund. Depending on the severity of the error (whether the information is wrong or simply incomplete), you might even get an official notice and the agency will attempt to contact you with a request to provide the correct information and even verify your identity to prevent fraud of any kind. Obviously, the longer the IRS takes processing your tax return, the longer they’ll take with your refund as well.

Delays Due To Audits

In the worst of cases, something in your tax return or your overall tax situation will warrant an audit from the IRS. Things such as unreported income, excessive deductions, a drastic change in income from past years, and even math errors and typos are just some of the vast number of reasons that can trigger an IRS audit. It goes without saying that an audit puts everything else on hold for your tax situation, so you can kiss that refund goodbye at least until the agency’s questions have been satisfied (and that’s if you’re left in good enough standing for the refund to go through as normal).

How The IRS Issues Tax Refunds

There are two main ways the IRS issues tax refunds: The first and oldest type is by check, which is sent through U.S. mail; the second, more recent one, is as direct deposits to your bank account. There are a few extra options, such as taking an amount of U.S. Series I savings bonds equal to your refund, or loading it to a prepaid debit card. Without questions, the fastest and most convenient way out of all these is to get your refund through direct deposit.

As to how fast the IRS issues those refunds, that depends. Most issues (that is, refunds from overpaying taxes) are issued no later than a few weeks after you’ve filed your tax return, but some other types of refunds take longer by design. For example, the Earned Income Tax Credit (EITC) is paid to eligible taxpayers by February 27; the reason for this longer wait is because that’s how the IRS filters claims from fraudulent activity.

Where Is My Tax Refund?: FAQ

1. How can I check the status of my tax refund?

You can check the status of your tax refund using the IRS “Where’s My Refund?” tool. To do so, you will typically need to provide your Social Security Number (SSN) or Taxpayer Identification Number, your filing status, and the exact refund amount. The tool is constantly being updated, so checking once a day is sufficient.

2. How long does it take to get my tax refund?

The amount of time you have to wait for your refund depends on how you filed your taxes. If you choose to e-file your taxes, refunds will usually be processed within 21 days after submitting your return. On the other hand, paper returns can take up to six weeks or more. Delays are always a possibility, however, and they may occur if there are errors, incomplete information, or additional reviews required.

3. Why is my tax refund delayed?

There are many reasons why your tax refund might be delayed. The most common reasons for a delay are as follows:

• The IRS found errors or inconsistencies in your tax return.
• You claimed a credit (or credits) that require additional review, like the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC). These credits are also automatically delayed by the IRS to prevent fraudulent activity.
• You filed during peak tax season, so there are backlogs at the tax agency.
• Issues with direct deposit information or offsets for unpaid debts.

4. What should I do if my refund hasn’t arrived?

In case your refund is delayed beyond the standard processing time, check its status using “Where’s My Refund?” online tool. If the status indicates a problem, gather your tax documents and contact the tax agency. You may also need to verify your identity or provide additional information to resolve the issue.

5. Can my refund be used to pay off debts?

Yes, if you have outstanding debts, then the IRS might automatically use your refund to offset these debts, such as federal or state taxes, student loans, or child support. If you notice that your refund was reduced or withheld, there should be a notice explaining the offset and the remaining balance (if any is indeed left).

6. How can I avoid delays with future refunds?

If you want to minimize delays, try filing your tax return electronically if you don’t already. When filing your return, make sure all information is accurate, and include all relevant forms. Double and triple-check your bank details if opting for direct deposit. Also, filing early can also help you avoid delays because you will avoid peak tax filing season when the agency is swamped with work.

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