Insights on Tax Refunds As Filing Deadline Approaches

With just a few weeks left until taxpayers must either file their returns or request an extension, many are focused on tax season. Some individuals who have already submitted their returns are still anxiously waiting for their refunds.

As of mid-March, about 70 million taxpayers have already filed, and most are expected to receive their refunds. The IRS provides a tool that lets taxpayers check the status of their refunds within three weeks after filing.

Through its “Where is my refund?” tool, users can find out if their return was received and whether their refund has been approved and sent. To use this tool, taxpayers need to enter their Social Security or Taxpayer Identification Number, filing status, tax year, and the amount of their federal refund.

When Will Taxpayers See Their Refunds?

The IRS’s tool also alerts you when your refund is sent to your bank via direct deposit. If you haven’t seen your refund by a specific date, it’s advised to check with your bank about the status.

If you filed your tax return electronically, you can typically verify your refund status within 24 hours. For those who electronically filed their previous year’s return, updates generally appear after three days. However, for paper returns, taxpayers should wait about four weeks after filing to check their status.

The timeline for receiving refunds varies based on how the returns were filed. If you e-filed, expect your refund in roughly three weeks. On the other hand, those who mailed their returns may wait at least six weeks, depending on when the IRS received the documents.

Important Tax Filing Season Details

The IRS suggests that taxpayers opt for direct deposit to receive refunds more quickly, as they are gradually phasing out paper refund checks. Although some paper checks will still be sent if there aren’t any alternatives, electronic methods are encouraged. Options for those without bank accounts might include prepaid debit cards or digital wallets.

Most refunds are processed within 21 days; however, some may require additional review, which could extend the timeline. For instance, returns claiming certain tax credits can be more complicated and might see delays. Simple mistakes, like not signing a return or miscalculating amounts, can also slow things down.

Delays in Refunds Across Multiple States

Electronically filed returns are generally processed faster than their paper counterparts. If the IRS makes amendments to a filed return, it may affect the refund amount, either increasing or decreasing it. Taxpayers will receive a notification by mail explaining any changes made to their refund status.

For those who have filed amendments, another tool is available to check the status of amended returns. This can typically take up to 16 weeks to process.

Additional options for checking refund status include the IRS mobile app or an automated hotline specifically for refunds and amended returns.