Tax Refund Delay: The deadline for submitting tax returns was April 15 for the majority of tax filers. Unless you live in one of these states or file a tax extension, that is. Even though the IRS has been mailing tax refunds for months, it takes time for the more than 66 million filers to receive their (slightly) larger refunds.
The IRS is aware of how much you value your refund. It takes pride in paying out the majority of refunds within 21 days of filing. But what happens if you don’t receive your tax refund right away, leaving you to wonder, “When will I get my tax return?”
It’s a fact that at H&R Block, people frequently ask, “Where’s my refund?” Additionally, this post will explain why a delayed tax refund could occur.
The IRS and the US Congress are concerned about refunds being disbursed quickly. There isn’t usually enough time to verify returns for accuracy when the IRS processes refunds rapidly. Additionally, hurrying this process increases the chance of incorrect refunds and return errors.
How can I get my refund?
The IRS “Where’s My Refund?” tracker page is the easiest way to keep track of your tax refund. It also lets you know if there were any errors in your return.
You will need to enter your Social Security number or Individual Taxpayer Identification Number, your filing status (head of household, married, or single), and the total amount of your refund in whole dollars to use the IRS’s tracker tools.
Go to the IRS website’s “Get Refund Status” page, fill out the form, and click “Submit.”
You might be prompted to confirm your personal tax information and try again if you aren’t taken to a page that displays the status of your refund. You will need to indicate whether you filed electronically or on paper, as well as the date you filed your taxes, if all the information is accurate.
Make sure that tracking an online return takes at least a day, or four weeks if the return was mailed.
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You submitted your taxes on paper
Processing time is quickest for electronic filings. As a result, filing taxes on paper can cause the process to bog down considerably. How much slower does the paper filing actually get? If you mail your return, the IRS will receive it after six to eight weeks, as opposed to the 21 days it takes when you e-file.
You will also have to wait for your refund to come in the mail if you choose to receive a check rather than a direct deposit. Direct deposit is not only more rapid, but it also offers greater security for your tax return.
You File a claim for the Additional Child Tax Credit or Earned Income Tax Credit.
According to the IRS, it is legally unable to issue your refund before March if you claim the Earned Income or Additional Child Tax Credit. To give the IRS enough time to stop identity theft, they took this action, according to Josh Zimmelman, owner of Westwood Tax & Consulting in New York.
He stated, “A taxpayer’s only option to prevent this delay is to choose not to claim the EIT or ACT credits.” “However, you should be entitled to these credits if that is the case. You are left with no choice but to file normally and wait.
You Give Inaccurate Information About Direct Deposit
Direct deposit offers advantages. Because you don’t have to wait for the check to arrive in the mail, choosing to have your refund directly deposited into your bank account usually expedites your tax refund. However, you might receive a delayed tax refund if your routing and account numbers were entered incorrectly.
Tax attorney David Hryck of the Reed Smith law firm in New York stated, “A small error within (an) account or routing number can definitely cause your tax refund to see a sizable delay of a few weeks or over a month.” “Once the deposit is denied, the IRS will send you a paper check if the direct deposit information is inaccurate. After that, a check will be given to you. This entire process may take several weeks.
That does not, however, imply that you should forego direct deposit.
According to Hryck, “direct deposit is unquestionably the fastest way to get your tax refund.” Thus, before processing, please double-check all of your information when using.
You Provided an Incorrect Identifying Information
Even the smallest errors can result in a delayed tax refund. You run the risk of needless tax refund delays if you enter incorrect identification information, leaving you uncertain about the progress of your tax return. These data contain mistakes in:
- Name
- Name of your spouse
- The names of your children
- Any numbers associated with Social Security
“Your Social Security number and your name on the return must match the information in the Social Security administration’s database,” according to Hryck, who described the IRS’s procedure for confirming tax return information. According to him, a mismatch can cause a major delay in your return.
“The bank will reject the transaction and they will not be able to deposit the refund to that account if the taxpayer’s name and Social Security number do not match that of the account holder,” he stated.
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In addition to verifying your entries once more before filing, you can also help avoid errors by using electronic filing, as this type of software automatically looks for common mistakes. Verifying for errors not only expedites the refund procedure but also keeps you from unintentionally committing tax fraud.
The Period of Your Unique Taxpayer Identification Number Has Ended
Make sure your taxpayer identification number (ITIN) hasn’t expired before filing your tax return if you plan to use one. An ITIN expires if it hasn’t been used in the previous three years.
It may be too late to expedite the process, but as soon as you can, use Form W-7 to renew your ITIN. The IRS estimates that the processing time for an ITIN renewal is roughly seven weeks. It may take up to 11 weeks, though, if you are applying during the busiest time of year, which is from January 15 to April 30.
The IRS will process your return if you file with an expired ITIN; however, all associated credits and exemptions will be denied. A notification that the ITIN has expired will be sent to you. You will be responsible for paying all interest and penalties associated with the denied credits and exemptions until you renew your ITIN.
You Owe the Government Money
The Financial Management Service of the Treasury Department will use your refund to settle any debts you owe rather than giving it to you if you have any. You risk losing your whole tax refund if your debt is equal to or greater than the amount you were given back.
Money owed to the federal government, such as unpaid taxes or federal student loans, is included in these debts. They also comprise specific categories of debts owed by individuals, such as child support.
“The IRS has the right to deduct any outstanding debt from your refund. Furthermore, you won’t receive any compensation at all if the debt exceeds your refund, according to Zimmelman.
A notice from the Financial Management Service will indicate how much the IRS took and how much you were supposed to receive if they took any or all of your tax refund, also known as a “offset.” Additionally, it will display which agency was given the offset payment. Get in touch with the organization that received the funds if you don’t think the offset is accurate.
This point emphasizes the significance of ensuring that your annual tax refund is reasonable. This indicates that you are deducting excessive amounts from your pay each month. A simple solution to this issue is to modify your W-4 form.
You Filed Your Tax Return Wrong
Your refund may take longer to process if you return something incorrectly. The kind of error determines how big the delay is. According to Zimmelman, “the IRS will usually correct that for you if you made a computational error.” “There might be a small delay, but the tax return won’t likely be denied.”
More significant errors, however, may result in protracted delays. “You can file an amended return if you discover you’ve made a mistake on your filing status, number of dependents, deductions, credits, or total income,” Zimmelman advised. “More significant mistakes could mean you have to mail in your return again.”
Thus, if the IRS chooses to review your return further, your refund may also be delayed. After filing your return, you can always check the status online if you’re wondering, “Where’s my tax refund?” Furthermore, you can lessen the likelihood that your tax refund will arrive after the deadline by heeding the advice in this article.
You Added Something to Your Tax Return
You can file an amendment by using IRS form 1040X if you discover an error on your tax return. The drawback of filing an amended tax return is that you will have to wait a while to get any money back from the government. Processing amended filings can take up to 16 weeks, according to the IRS.
When to Get in Touch with the IRS if Your Return Isn’t Ready
Fortunately, it’s simple to monitor the progress of your tax refund with the IRS. You can use the IRS2Go mobile app or check your status online. Only if it has been more than six weeks since mailing your return, more than 21 days since you e-filed, or if the online “Where’s My Refund” tool asks you to get in touch, should you give the IRS a call.
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Take note that COVID-19 mail processing delays are causing the IRS to process paper tax returns longer. The agency requests that you do not call to inquire about the status of a mailed return or file a second return.
Maximizing the Value of Your Income Tax Return
Make sure all of your information is accurate before sending anything to the IRS and your state’s tax department to avoid a delay in your tax refund. If at all possible, you should also utilize the quickest methods of filing, which are direct deposit combined with electronic filing. By pairing them, you can be sure that the money will return to its rightful place in your bank account. After that, you can decide what to do with it, provided you stay away from these typical blunders.
