If there is an issue holding up your return, the resolution "depends on how quickly and accurately you respond, and the ability of IRS staff trained and working under social distancing requirements to complete the processing of your return," according to its website.
The date you get your tax refund also depends on how you filed your return. For example, with refunds going into your bank account via direct deposit , it could take an additional five days for your bank to post the money to your account. This means if it took the IRS the full 21 days to issue your check and your bank five days to post it, you could be waiting a total of 26 days to get your money.
If you submitted a tax return by mail, the IRS says it could take six to eight weeks for your tax refund to arrive once it's been processed. Because of the pandemic, the IRS ran at restricted capacity in , which put a strain on its ability to process tax returns and created a backlog.
The combination of the shutdown, three rounds of stimulus payments, challenges with paper-filed returns and the tasks related to implementing new tax laws and credits created a "perfect storm," according to a National Taxpayer Advocate review of the filing season to Congress. The IRS is open again and currently processing mail, tax returns, payments, refunds and correspondence, but limited resources continue to cause delays.
The IRS said it's also taking more time for tax returns that need review, such as determining recovery rebate credit amounts for the first and second stimulus checks -- or figuring out earned income tax credit and additional child tax credit amounts. If the delay is due to a necessary tax correction made to a recovery rebate credit, earned income tax or additional child tax credit claimed on your return, the IRS will send you an explanation. If there's a problem that needs to be fixed, the IRS will first try to proceed without contacting you.
However, if it needs any more information, it will write you a letter. To check the status of your income tax refund using the IRS tracker tools , you'll need to give some information: your Social Security number or Individual Taxpayer Identification Number, filing status -- single, married or head of household -- and your refund amount in whole dollars which you can find on your tax return. Also, make sure it's been at least 24 hours or up to four weeks if you mailed your return before you start tracking your refund.
If you entered your information correctly, you'll be taken to a page that shows your refund status. If not, you may be asked to verify your personal tax data and try again. If all the information looks correct, you'll need to enter the date you filed your taxes, along with whether you filed electronically or on paper. You'll be able to see if your return has been received, approved and sent. Another option is to obtain a personal loan from a bank or credit union.
Once you are approved for the loan, you typically receive the money in seven days or less, Fan says. Online lenders also provide personal loans. Applying online could speed up the process and you could also receive the money sooner.
Regardless of whether you apply online or in-person, if your credit score is below , expect to pay a higher interest rate on anything you borrow.
The IRS bottleneck may not get resolved soon. Both received by the IRS on July 17, — one was processed and the refund issued on March 8, and the other has yet to be processed. The key to getting your refund as quickly as possible is filing online if possible. Avoid filing a paper return by mail as these generally take longer to process.
When you file online, you will receive a quick confirmation that your return was either accepted or rejected. The email confirmation often occurs in just a few minutes. You can also enter your bank account information to receive a direct deposit of your refund or make a payment online.
When you file your return, avoid guessing on amounts reported by third parties such as banks, stock accounts, health insurance payments or mortgage interest, Peeler says. Instead, obtain the exact amounts by checking your account online or from the paperwork sent by these companies. For instance, mortgage lenders send out statements Form giving the exact amount of interest you paid on your loan.
Having mismatched amounts will cause a delay in your refund even if you understated the amount of a deduction. It has partnerships throughout the U. Ellen Chang is a freelance journalist who is based in Houston and writes articles for U. Chang previously covered investing, retirement and personal finance for TheStreet. That assumes, however, that you plugged in the right numbers for your bank account. Tax credits reduce your tax liability on a dollar-for-dollar basis.
Certain tax credits—including the earned income credit EIC and the additional child tax credit —often draw scrutiny from the IRS due to taxpayers claiming these credits fraudulently. Amending a tax return can also create a delay. In , the IRS changed the rules to allow for electronic filing of amended returns , though it only applies to and returns. In that situation, it can take up to three weeks for it to show up in the IRS system and another 16 weeks to be processed, meaning that you may be waiting several months for your refund.
If you owe certain debts—including unpaid child support , unpaid state taxes, or delinquent federal student loans— the IRS can offset your refund by the balance owed.
You have the right to dispute the debt with the agency that received your refund. In addition to the seven reasons listed above, one of the significant reasons for slower processing times during has been the impact of the COVID pandemic.
In particular, if a taxpayer filed a paper return, the processing time may be slower due to limited staffing as a result of the pandemic. This is causing refund delays. Taxpayers who have already filed a paper return should know that the IRS is processing paper returns in the order in which they are received.
The problem is ongoing. National Taxpayer Advocate Erin M. That said, a sizable amount of refunds can be delayed beyond that, sometimes significantly. An incomplete return, an inaccurate return, an amended return, tax fraud, claiming tax credits, owing certain debts for which the government can take part or all of your refund, and sending your refund to the wrong bank due to an incorrect routing number are all reasons that a tax refund can be delayed.
Go there and plug in your Social Security number SSN or individual taxpayer identification number ITIN , filing status, and exact amount of your refund to get an update on where in the pipeline it is.
Above are some of the most common reasons for a delayed refund. Having your refund stolen from your mailbox is another possibility. And a government shutdown , such as the one that took place in January , could also result in a longer wait for your return to be processed and your refund sent.
The IRS may be able to trace your refund to find out what has happened to it and issue a replacement if needed. Internal Revenue Service. Accessed Oct. Treasury, Inspector General for Tax Administration. Federal Trade Commission. Treasury, Bureau of the Fiscal Service. You may be a victim of Identity Theft — a common scam is for someone else to use your personal information to file a tax return and steal your refund. Learn more about tracing a refund in Lost or Stolen Refunds. The PATH Act made the following changes, which became effective for the filing season, to help prevent revenue loss due to identity theft and refund fraud related to fabricated wages and withholdings:.
See Held or Stopped Refund s for more information.
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