How long does it take for taxes to process?
Many Americans rely on getting their tax refund to have additional money to make a large purchase. How you file your tax return can help avoid delays.
The IRS expects to process over 168 million tax returns this year. With no substantive changes made to the federal tax code, it should be a quiet season.
Although there are no federal stimulus payments this year, taxpayers can still claim several tax credits that can result in thousands of dollars added onto refunds, such as the Earned Income Tax Credit and the Child Tax Credit. How you file can significantly affect how long it takes to process your tax return and get your refund. To avoid any delays, it is highly recommended that you prepare your filing correctly.
The Internal Revenue Service (IRS) has made it clear that it can process most tax returns filed electronically within 21 days of receiving them. After processing the returns, the IRS will issue your tax refund. To speed up the process of receiving your refund, it is highly recommended that you opt for direct deposit. For those that choose to file a paper return, the agency says that “if you file a complete and accurate paper tax return, your refund should be issued in about six to eight weeks from the date IRS receives your return,” but warns that it could take up to six months before a tax refund is issued.
How do you check the status of your refund?
To track the status of your tax refund, you can use the Where’s My Refund? tool developed by the IRS. If you file your tax return electronically, you will receive an update within 24 hours of submitting your return. However, if you file a paper return, you may have to wait for up to four weeks to receive an update.
The Where’s My Refund tool will show you the status of your return as it goes through three phases: Return Received, Refund Approved, and Refund Sent. You will be asked to provide your Social Security Number as well as the refund amount generated when filing your return.
How long does it take to receive a refund?
If you file electronically, the IRS says that around ninety percent of tax filers can expect their refund within twenty-one days. If it has been longer than twenty-one days, or six weeks for those who submit a paper return, a representative at the IRS can walk through the status of your refund over the phone.
IRS offers tax filing tools
For those looking to file for free, those with a gross income of $73,000 a year or less can use the IRS’ Free File Program. The IRS recommends using this program to file electronically and receive your refund via direct deposit. All refunds require a routing and account number. Additionally, the IRS is piloting a direct file service and this year it will be free for filers in twelve states to use.
For those with low-incomes in need of correcting an issue related to an audit or refund with the IRS, the Low Income Taxpayer Clinics (LITC).