Waiting for a tax refund is one thing that everyone can relate to, and the time schedule is more predictable than most people think. No matter if you e-filed or sent it by post, it can save you a great deal of unwarranted anxiety and enable you to more confidently plan your budget as you wait, by understanding what happens next after you make a filing.
What is the average Time to receive a Tax Refund after Filing?
Most taxpayers receive a refund within 21 days of making an electronic filing – in many cases even sooner. Paper returns are much more lengthy. Each filing season the IRS takes millions of returns and your place in the queue is heavily dependent upon how and when you have filed. The two surest methods to have your refund delivered within the shortest time possible by the system are to file early in the season and use direct deposit.
E-File vs. Paper Filing Schedule.
- Direct deposit and electronic filing normally result in a refund in 10 to 21 days – the quickest among the majority of taxpayers who submit simple returns without mistakes or red flags for further examination.
- Mailed paper returns to the IRS are much longer to process – averaging 6 to 8 weeks or more – since they have to be handled manually before a refund can be issued or even traced.
What Can Influence the Rate at Which You Get Your Tax Refund?
All returns do not pass through the IRS at the same pace. In some cases, it leads to extra inspection or examination measures that prolong the regular schedule of events – in some cases considerably. Finding out the reasons behind these delays will allow you to prevent them and realize what is going on in case your refund is delayed longer than expected.
Mistakes, Checking, and Rechecking Time wastage.
- Math errors, missing information or discrepancy in figures between your records and those of IRS automatically cause a review, which holds your refund pending the discrepancy being corrected by manual IRS processing.
- It is legally required that the IRS withhold refunds up to mid-February, even when you filed earlier in the year, by claiming some credits, such as the Earned Income Tax Credit or Additional Child Tax Credit, which puts you weeks into the normal timeframe.
- Identity verification flags, amended returns or returns with extra supporting documentation all need to be manually reviewed, and this increases the processing time far beyond the usual 21-day limit of electronic filers.
Does Direct Deposit Have Your Tax Refund sooner?
Yes – the fastest and only way to get your refund after being approved is by direct deposit. By taking the option so as to have your refund deposited into your bank account, you do away with the time cost of mailing and having the money processed through paper checks, which could take you days or even more than a week to receive the payment after the IRS has already made the decision to make such a payment.
Advantages of Electronic Payments.
- Refunds in direct deposits will usually take one to three business days to be approved by the IRS – the quickest method through which taxpayers can receive their money after the filing process.
- Paper refund checks must be physically mailed following IRS approval – this introduces an additional element of uncertainty of the postal transit time on top of an already longer processing cycle than electronic direct deposit.
Where Am I to find the Status of My Tax Refund?
You need not sit and wait to find out, the IRS offers a free tracking option and thus you can see the status of your refund at any point after you have filed. The application is referred to as Where My Refund? and can be found on the IRS site at IRS.gov and on the IRS2Go app. The majority of individuals who are enquiring the whereabouts of my tax refund are able to receive a clear status update within 24 hours of e-filing or four weeks of sending a paper filing.
Understanding Status Updates
- Where my tax refund tracking displays three levels, Return received, Refund approved, and Refund sent – providing you with a clear real-time view of the exact position your refund is in the MIS processing stream.
- When the where my tax refund tool does not update even after the normal processing time, it is possible that your tax return needs further consideration and in this case it is advisable to consult a licensed tax preparer.
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Conclusion
The first step to getting your refund fast begins with an accurate and timely filing and that is where professional help comes into play. Any mistake, omission, and inaccurate data all delay your refund and can cause IRS hassles that require time and effort to correct.
Epicwayz Advisors is a local tax advisory service, which is trusted and has its offices in Plano, and assists individuals and business owners to file accurately, utilize all available legitimate deductions and avoid the pitfalls that can slow down the receipt of refunds. Their team provides Tax Services, Accounting Services, Business Advisory Services, and Fractional CFO Services all to ensure that your tax situation is always organized, compliant, and optimized. Get expert assistance this tax filing season and no longer ask yourself where’s my tax refund, now you know because it is coming to me sooner because it was filed correctly.
