After you have filed your 2022 tax return, the IRS states that 9 out of 10 refunds will be issued within less than 21 days; that is if; you e-file with direct deposit.
In this episode, Jeff Dvorachek, a tax partner, breaks down how fast your refund will arrive depending on the filing and; the refund method chosen.
Well Terry, the tax filing season has officially started. The IRS announced that they are ready to accept electronically filed returns. In the past we have talked about the benefits of filing and paying your taxes electronically and having your refunds deposited directly into your bank account and I want to continue to recommend doing both. So let’s say you filed your return and chose direct deposit, and now you want to know when your refund will be deposited. Just like everything else – there is an app for that. And these Where’s my refund apps can be found on the IRS and state websites which will tell you when you can expect the refund.
OK, HOW FAST WILL REFUNDS COME?
- Depend on how you file.
- If you file on paper we used to say 6-8 weeks, but now that time is more like 6 months or more!
- If you e-file with a paper check option – 4 weeks
- If you e-file with direct deposit – less than 21 days, in general. The IRS says that 9 out of 10 refunds will be issued in less than 21 days.
SIX MONTHS FOR PAPER FILED RETURNS??
- Or longer. We still have people waiting for their refunds on returns that were filed prior to April 15th of last year.
- As of December 30, the IRS still had over 2 million returns that were received but not processed.
- 1.6 million are because of errors and 440,000 just have not been processed at that time.
THAT IS WHY MOST PEOPLE ARE FILING ELECTRONICALLY AND GETTING DIRECT DEPOSIT
- Yes. Not only will the refund come quicker, but it is a more secure way to get it.
- And there are more options available for e-filing, including your accountant, third party software or filing it though a link on the IRS website.
SO I FILE MY RETURN, WHERE CAN I GO TO FIND THE WHERE’S MY REFUND APP?
- You can go to irs.gov and click on the Get Your Refund Status option
- You need to enter your SSN, filing status and refund amount.
- You can do the same on the state’s website.
- It will tell you the status of your return and when you can expect your refund.
- The site is only updated once a day, so it does no good to go on the site more than once a day.
WHEN WILL THE INFORMATION BE ON THE SITE?
- About 24 hours after you electronically file and up to 6 months if you paper file.
WHAT THINGS CAN DELAY THE REFUND FROM COMING?
- Financial institution may reject the deposit due to errors on account or routing numbers.
- Return is pulled due to potential identity theft.
- Return includes errors
- Earned Income Tax Credit can also delay the refund.
WHY THE EARNED INCOME TAX CREDIT IN PARTICULAR?
- There has been a history of errors or fraud with this credit.
- By law, the IRS also cannot issue refunds before the middle of February so the IRS is now saying not to expect the refunds before February 28.
LASTLY, WHAT IF THE DEPOSIT AMOUNT IS DIFFERENT THAN WHAT THE RETURN SHOWS?
- IRS will send you a notice later to explain
- Return calculation is incorrect.
- Estimates or withholding do not match their records.
- Offset prior tax due federal or state, child support, spousal support, even past due student loans.
Be sure to talk to one of our professionals if you have any questions regarding your refund.
