How long does it take for taxes to process?
The IRS is responsible for sorting your filings and will do so as efficiently as possible assuming all tax and appropriate details are in order.
Have you filed your taxes? Are you now desperately waiting for the Internal Revenue Services (IRS) and related systems to process them? If so, you are not alone, with millions of Americans having the same query. Allow us to provide some clarity on the whole situation.
Understanding the tax process
Millions have already filed their tax return to the IRS in hopes that their refund will be sent as soon as possible. This year households across the US are expected to receive higher refunds thanks to the remaining balance of the child tax credit and the ability to claim the third stimulus checks if it was never received.
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Facing a growing backlog of paper return the tax agency has urged filers to submit as quickly as they can to avoid seeing delays in their refund. However, while filing on or before the deadline is recommended, the IRS also warns against filing "prematurely" as mistakes can cause serious delays in reviving your refund.
How to do you check the status of your refund?
With many expecting larger refund this year, they are eager to check the status of their refund.
Refunds can be tracked through the Where's My Refund? developed by the IRS. Those who file electronically will be able to use the tracker more quickly as the system will provide you with a status update within twenty-four hours of the return's submission.Those who send in a paper return may need to wait up to four weeks before receiving an update.
While the return is being processed, it will go through three phases, all of which can be seen using the Where's My Refund tool: Return Received, Refund Approved, and Refund Sent.
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 says that using this program is the fastest way to file electronically and receive your refund through direct deposit. All refunds will be distributed through direct deposit so long as they provide a routing and account number.
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).
Last year, the LNTC helped to "secure more than $5.8 million in tax refunds and reduced or corrected taxpayers' liabilities by over $116 million." These clinics also worked with almost three thousand tax payers to ensure they were up to date and compliant with the IRS.