10 Important Points To Know About Refunds For This Tax Season

Have all your documents at hand when you file your return and request your tax refunds.

Photo: Mikhail Nilov / Pexels

The Internal Revenue Service (IRS) is about to start tax filing season this year, will start on January 24 and suggests anticipating and having all our documents in order. And for those who are going to request refunds, the agency released the most frequently asked questions from users.

1. How quickly will I receive my refund?

The IRS issues most refunds in less than 21 calendar days. However, it takes more days for some 2020 tax returns that require review, including incorrect amounts of the refund recovery credit, or returns where 2019 income was used to calculate the earned income tax credit and tax credit. additional for children.

Although most refunds are issued in less than 21 days, it may take longer for your refund. Remember to also take into account the time it takes for your financial institution to post the refund to your account, or for the refund to arrive in the mail.

2. It has been more than 21 days and I have not received my refund. Why?

The processing of some returns takes longer than others for many reasons:
– By mistakes
– Incorrect amounts of refund recovery credit is incomplete
– Needs an additional overhaul overall
– You are affected by identity theft or fraud
– Claim the Earned Income Tax Credit or Additional Child Tax Credit
– Includes Form 8379, Allowance for the injured spouse (the process of which may take up to 14 weeks)

3. I claimed the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) on my tax return. When can I expect to receive my refund?

The IRS cannot issue EITC and ACTC refunds until mid-February. The IRS anticipates that most EITC / ACTC-related refunds will be available in taxpayers’ bank accounts or on debit cards by the first week of March, if you choose direct deposit and there are no other tax return issues. taxes. Check Where’s My Refund?

4. If I call, does that help me get my refund faster?

No. Unless the application Where is my refund? instruct you to contact the IRS, the representatives will not be able to provide you with any additional information.

5. When can I start checking the status of my refund under “Where’s my refund?”

Twenty-four hours after the IRS receives your electronic return, or four weeks after you submit a paper return. It is important to note that the tool will tell you the status of your most recent return only, not past years.

6. How do I know if you are processing my return?

Where is my refund? tracks your tax return from received to completed. It will tell you when your return is in the “received” status and if your refund is in the “approved” or “submitted” status.

7. What happens when my refund is “approved”?

Your refund has been approved. The IRS is preparing to send your refund to your bank, or directly to you by mail. This status tells you when the refund will be sent to your bank (if you chose the direct deposit option). Wait 5 days after the IRS sends the refund to verify with your bank, as it varies in how and when they credit the funds. (It may take several weeks for you to receive a mailed refund check.)

8. Are the different stages of return received, refund approved and refund sent always shown?

No, not always. Sometimes, when the IRS is still reviewing your return, it will instead teach instructions or an explanation of what is being done.

9. I requested a refund by direct deposit. Why do you send me a paper check?

There are three possible reasons for this. They are as follows:
– IRS only electronically deposits refunds to accounts that are in the name of yourself, your spouse, or a joint account between the two of you.
– The financial institution can reject a direct deposit.
– We cannot deposit more than three electronic refunds to the same financial account.

10. Why is my refund for a different amount than indicated on the return I filed?

All or part of your refund may have been offset to pay off bad debts by federal tax, state income tax, state unemployment compensation debts, child support, alimony for ex-spouse, or other nontax federal debt, such as student loans.

It may also be that the IRS changed the amount of your refund because the agency made changes to your tax return. This could include corrections to any refund recovery credit amount. You will receive a notice explaining the changes.

For the latest information on processing IRS refunds during the Covid-19 pandemic, see the IRS status of operations page. Remember that the page is updated once a day, usually overnight. There is no need to check it more often.

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