Tax Refund Expectations Based on the Refund Schedule
Every year, millions of Americans get tax refunds when there are taxes due and they file their tax returns. Many people are expecting this money and want to know when it should come.
When to Expect Your Tax Refund Considering the Refund Schedule
The IRS will issue about 9 out of 10 refunds in less than 21 days. However, there are many different things that can delay your tax return and cause it to take even longer and need additional time.
How to Check Your Refund Status
You can use the “Where’s My Refund?” tool on the IRS website for the most up to date information about your refund. This tax tool is updated daily so you won’t have to check very often. You can use the tool to start checking the status within just 24 hours if you have e-filed the return, and about 4 weeks after you mail in the paper return.
The Tracker Will Display Three Different Stages
The first stage is when your return is received
the second is that your refund is approved,
and the third is when your refund is sent.
You will get individualized information that is based on the handling of your tax return. The tool then gives you an actual date as soon as your tax return is processed and your refund is approved. Y
ou are also able to contact the IRS by phone. In order to do this, you should wait 21 days after electronically filing and about six weeks after mailing the return.
What Is the Tax Refund Schedule?
The IRS will usually send out a refund on a schedule. Every year, you are able to view the tax refund schedule. The schedule will vary depending on the method you sent the return in when you file and what credits you claim.
Direct Deposit and E-File
If you go with this method, it can take you about one to three weeks until your return is accepted and you receive your refund.
E-File and Check
With this method, the refund can take one month.
Direct Deposit and Mail-In Return
When mailing in your return and using direct deposit, expect your refund to take three weeks.
Check and Mail-In Return
If you mail in your return and need your refund in a check, you should expect it to take two months.
What Does It Mean When Your Tax Return Is Accepted?
What Happens After You E-File Your Tax Return?
After your tax return is e-filed, it is stamped and electronically sent to the IRS. The return will now be in the hands of the IRS. It will usually take 24 to 48 hours for them to review your information and make sure that it is correct.
The personal information needs to match and you can’t have taken any deductions or credits that require further review in order to have your return accepted that quickly.
You should get an email notification once the return is accepted. After you receive confirmation then you can expect that your refund will come based on the estimated tax refund schedule.
Once you receive information that your tax return is accepted this means that the IRS has received the return and it passed the first inspection. The first inspection includes things such as verifying personal information and other basic information. Then it will take a few days to approve the refund. During this time, there is a more in-depth look at the return and your tax history. Once the IRS approves the return then you get your refund based on the tax refund schedule.
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What to Do If You Haven’t Gotten Your Refund
If you haven’t gotten your tax refund according to the tax refund schedule, there are some things you should do. First, be sure to check your refund status. Once you know the status of your refund you can begin to narrow down what happened.
The IRS Released Your Refund
If the IRS has released it, there could be different things that happened to it, depending on the method you requested. If you requested that the IRS mail you a check then it could have gotten stolen or lost in the mail. In order to fix this, you need to report the missing check so the IRS can start a trace.
Once the IRS determines that the check was stolen or lost, it will let you know the next steps. If the refund was going to go to your bank account, there are a few things that could have happened. The bank account information could have been incorrect. Unfortunately, the IRS isn’t responsible if you make an error so you will need to contact your credit union or bank and figure out the next steps.
If you already have contacted your bank or credit union and didn’t get a result then file the IRS Form 3911. The IRS will contact your banking institution and try to help but they are not able to require the credit union or bank to return the funds. It is possible that the direct deposit information was changed after you reviewed and signed your tax return and this means you are a victim of tax return preparer fraud and there will be a number of steps you will have to take to resolve this.
The IRS Could Be Holding Your Refund
The PATH Act, which became effective for the 2017 season, made some changes in order to prevent revenue loss because of refund fraud or identity theft. The IRS won’t issue your refund before February 15th if you claimed the Additional Child Tax Credit or Earned Income Tax Credit. Even if you didn’t use these credits, the IRS may be reviewing items on your tax return and this is why you haven’t received anything yet.
If you have been told that you already filed your tax return and received your refund then you could be a victim of identity theft, which is a common scam.
The IRS Paid Less Than You Expected
If you got your refund and it was less than you awaited or you checked the status and the IRS says they didn’t get your tax return then you should request a transcript of your tax account to see what is happening. It’s possible the IRS could have changed an amount on your tax return but you didn’t get a notice. A transcript of the account will have information about the processing of your return and the receipt.
If you are still unsure of what happened to your refund then it’s best to contact an IRS representative.
What Can Delay Your Tax Refund?
There are a number of reasons why your tax refund may be delayed. While the tax return process has sped up over the years thanks to e-filing, it may still take some time.
One common cause of a delayed refund is missing information on the return. You will need to include the Social Security Numbers of dependents as well as other information and if you fail to do this then it can hold up your return. For a paper form, if you fail to include copies of your 1099 or W-2 then it can increase processing time, as is the case with any other missing schedules or forms.
The tax code can be complicated and there are special circumstances, exceptions, and credits, along with numerous exemptions. It’s usually not a surprise that a manually prepared return can include math errors. Some common calculation errors include the taxable amount of Social Security income, the Child and Dependent Care Credit, and overall taxable income errors. Errors with the amount of taxes withheld, estimated taxes you already paid, or Earned Income credit can result in computation errors. Using tax prep software may be able to help you avoid errors since the software will usually check for errors and bring them to your attention before you end up filing.
Part of the process for making sure your tax return information is correct is making sure the Social Security Number and name combination on the return matches what is in the Social Security database. If there is a mismatch, it can lead to a significant delay. The e-filing process will usually check for these common errors since returns that don’t first pass the electronic check are going to be rejected and you are able to fix them before you resubmit the return
While you may be anxious to get your refund, filing early may not be in your best interest. Changes in the tax procedures or code can sometimes happen at the last minute and refunds are delayed while the IRS updates the tax software. The delays are typically minimal but you can avoid any extra delays by waiting until the second or third week of the year. Filing at the last minute also delays your return, especially if you file on paper since a lot of people are filing at that time.
Later filing may also increase the possibility of tax theft where someone files a fake return using your Social Security Number and claims a refund. The IRS will delay processing returns that have a Social Security Number that has already been filed so if you file first, the thief is out of look, but if you file after the theft then your refund may be delayed several months.
Even if you get everything on your tax return correct, filing on paper will still delay your refund. The IRS estimates that e-filed returns are sent within three weeks but it can take double that amount of time to get a refund when you file a paper return. Paper returns need to be entered by hand into the computer so it takes longer to process.
E-filing may be the fastest option for many taxpayers but there are some situations that make you file a paper return. For example, if you are requesting an adoption credit then you aren’t eligible to file your return electronically. Some supporting documents and forms, such as power of attorney, require that the forms be mailed to the IRS, even if you do file electronically.
If you make changes after you have filed your return then you need to prepare an amended return. An amended return is ineligible for e-filing and instead will need to be mailed to the IRS. Processing this takes about eight to 12 weeks from when the IRS gets the return. It won’t affect your original refund but you may have to wait.
Tax credits reduce your tax liability. Certain tax credits, such as the Additional Child Tax credit and Earned Income credit, will draw scrutiny from the IRS since there are a lot of taxpayers that claim these credits frequently. If you haven’t received your refund yet then it may be because you claimed these credits and they are being reviewed.
If you owe certain debts, such as unpaid child support or state taxes, then the IRS can actually offset your refund by the balance owed. If this does happen, you will get a notice from the Bureau of Fiscal Services telling you why your refund was taken and which agency your debt was paid to. You do have the right to dispute the debt with the agency that received your refund.
One of the fastest ways to get a refund is to e-file and have a correct return and then request a direct deposit for your refund. However, you want to triple check your direct deposit information. A simple mistake in the account number can mean your refund is delayed for weeks or even for months. The IRS will issue a paper check when the deposit is rejected and then mail the check to you.
You are able to choose a paper check from the beginning instead of a direct deposit but this can delay your refund when it comes compared to direct deposit. Assuming that everything else is correct with your return, the delay only comes from the time it takes the IRS to issue a check and for the mal to deliver it.
Ways to Get a Refund Advance
If you have reviewed the tax refund schedule and still need your refund even earlier, there may be ways to get a tax advance.
A tax refund advance is an interest-free and no-cost loan that many major tax preparation companies offer during the tax season to customers who are supposed to get a refund.
A tax refund advance is a service that is offered by tax preparation services to get you in the door and then collect fees on other services. The big draw is that these loans allow you to get your refund in just a few hours instead of waiting for the IRS to process the return. The refund loans themselves can be free but the tax preparation associated with them can be expensive and some fees are not clear upfront.
Taxpayers who want to save money should consider different alternatives:
File Early
Whether or not you use tax preparation services, the key to getting your refund faster is to file earlier. You don’t want to file too early but the earlier in the season you file, the faster your refund will get there.
E File
Once again, it doesn’t matter if you are using tax preparation services or filing on your own. If you file electronically then your refund will come to you faster than if you paper file.
Paper File but Request Direct Deposit
If you do need to do a paper return then request direct deposit so that you get your refund much faster.
Get a Short-Term Loan
If you need money faster than the options allow then you can also consider borrowing possibilities, such as a credit card or personal loan. The key is using a short-term loan and making a promise to yourself that you will pay back the loan in full the minute your refund hits the bank. There can be very high-interest rates associated with these options so you could be in a deep hole if you just continue to pay it off in monthly installments.
If you are going this route then be sure to shop around for the least expensive choice for your situation. Paying a high-interest rate for a week or two may be a less expensive option when compared to paying to have your taxes professionally done, especially if you are going to have to pay a fee in order to borrow for the tax prep services.
Finally,
A tax refund schedule is a useful tool in order to give you an estimate of when you should expect your tax return. Keep in mind that there are a number of things that can delay your tax return. If you were supposed to get it based on the schedule, you will have to check the status with the IRS and reach out to figure out what may have happened to your refund.