The average direct deposit tax refund last tax season was close to $3,000, and since we’re in the middle of tax season, it’s no wonder the most common question we hear about it is:
“Where’s my refund?”
The time it takes for the IRS to process your tax refund is based on how you chose to file your tax return, either electronically or by mail.
- Electronically Submitted Tax Returns with Direct Deposit: Filing with direct deposit is the fastest way to get your federal tax refund. According to the IRS, nine out of 10 refunds will be processed within 21 days of acceptance if there are no issues.
- Paper tax returns sent by mail: Avoiding filing taxes on paper is more important than ever to avoid refund delays this year. The IRS warns that if you need your refund quickly, don’t file it on paper. Due to COVID-19, the IRS expects there will be delays for paper returns. The IRS generally says to wait 4 weeks before checking the status of your refund, and the refund processing time is 6-8 weeks from the date the tax return is received.
Refund Process
- Start checking status 24-48 hours after e-filing: Once you’ve e-filed your tax return, you can check its status with the IRS’s Where’s My Refund tool? Take into account that when you check the status of your refund you must have the following information: Social security number or ITIN (personal taxpayer identification number), marital status for purposes of the declaration, and the exact amount of the refund.
- Notice of return receipt between 24 and 48 hours after electronic submission: The “Where’s My Refund?” tool The IRS will show the status “Return Received” when the tax return begins to be processed. When you check the status of your refund, you will need the following information: Social Security number or ITIN, filing status, and the exact amount of the federal tax refund shown on the tax return. You won’t see a tax refund date until the IRS finishes processing the return and approves the refund.
- Change of status from “Return Received” to “Refund Approved”: When the IRS finishes processing the tax return and confirms that the refund has been approved, the status changes from “Return Received” to “Refund Approved”. The status change may take a few days and a refund date will not be indicated in “Where’s my refund?” until the tax return is processed and the refund is approved.
- The “Where’s My Refund?” tool shows the refund date: The IRS will report a custom refund date once the status moves to “Refund Approved.”
- The “Where’s My Refund?” tool shows the status of the refund sent: If the status is “Where’s my refund?” indicates “Refund Sent”, the IRS sent the tax refund to your financial institution for direct deposit. The term for your financial institution to deposit the funds in your account can be from 1 to 5 days. If you chose to receive your tax refund by mail, it may take several weeks for your check to arrive.
You could experience delays in receiving your tax refund if you return:
- It includes errors, such as the Refund Recovery Credit or the Advance Child Tax Credit. The IRS has indicated that your refund could be delayed if the information you provided on your tax return when claiming the Refund Recovery Credit and Advance Child Tax Credit does not match IRS records. This year, the IRS sent Letter 6475 with the total amount of your third stimulus payment issued in 2021 and Letter 6419 with the full amount of Child Tax Credit A advance payments issued. If you did not report the correct amount of the third stimulus or the month of Child Tax Credit advance payments on your tax return when you tried to claim the catch-up refund credit or the rest of the 2021 Child Tax Credit, your return will require additional review by the IRS, which will delay the processing of your tax return and refund.
- It is incomplete: if you did not have all your documents and you filed an incorrect return.
- Needs a more general review
- You are affected by identity theft or fraud.
- Includes the Earned Income Tax Credit or an Advance Child Tax Credit: Under the Path Act, the IRS cannot issue a refund involving the Earned Income Tax Credit or the Advance Child Tax Credit before mid-February.
- Includes an Injured Spouse Assignment PDF Form 8379, which could take up to 14 weeks to process.
