Your tax refund most likely arrived in two to three weeks if you filed your return electronically. The IRS said that it had processed 97 percent of the more than 145 million tax returns it had received this year as of the end of the spring filing season, issuing slightly more than 96 million refunds.
National Taxpayer Advocate Erin M. Collins made the remark in her most recent report to Congress, adding, “Paper is the IRS’s Kryptonite, and the agency is still buried in it.” Collins highlighted that as of May, the IRS has 8.2 million tax forms in backlog, which is higher than it was the previous year, and that the processing time for paper returns is lengthening. Yikes.
what is good news? If the IRS owes you money, it must now give you additional interest. The “overpayment” interest rate increased from 4% to 5% as of July 1. Your 2021 tax overpayment is what caused your tax refund, and the IRS is required to begin paying interest on overpayment 45 days after accepting a tax return.
The Federal Reserve recently decided to boost the federal funds rate, which had an impact on the interest rate. Both the overpayment and underpayment interest rates charged by the IRS are determined by adding 3 percentage points to the federal rate.
8 Reasons Why Your Tax Refund May Be Delayed
You can check the status of your anticipated tax refund using the IRS tax refund tracker, which will also inform you if the IRS has rejected your return due to inaccuracies.
Continue reading to understand how the IRS calculates overpayment interest, how to use the tools provided by the organization to track your tax refund, and how to log into your online IRS account to acquire more details.
What happens if I timely filed my tax return but haven’t received my refund?
There are a number of reasons why your tax return could not have been processed entirely yet, causing a delayed refund. It’s possible that you included an uncommon form or made mistakes on your return that needed extra processing.
Regardless of the cause, if the IRS does not process your refund within 45 days of receiving your return, it must begin charging interest on the total amount due.
The 45-day window of time begins, whichever comes later, on the day the tax return was due or when the IRS received your “processable” tax return. The count began on April 18 if you submitted your return electronically on time; if you filed a paper return, it began on the day the IRS acknowledged receipt of your return.
The bad news is that, like interest from a bank or savings account, any IRS interest you get along with your refund will be treated as income and subject to taxation.
When can I expect to receive my tax refund?
Refunds for federal taxes are typically sent by the IRS in three weeks. In particular, if your return contains problems, certain taxpayers could have to wait a little longer.
The IRS website states that if a problem holds up the processing of your return, its resolution “depends on how quickly and accurately you answer, and the capacity of IRS staff trained and working under social distancing rules to complete the processing of your return.”
The method you used to file your return affects when you get your tax refund as well.
A further five days may pass before your bank deposits your tax refund if it is deposited directly into your bank account. This implies that if the IRS needs the whole 21 days to issue your check and your bank needs 5 days to deposit it, you may have to wait a total of 26 days to receive your tax refund. Due to the lack of a direct deposit waiting period, online services like Venmo and Cash App can deliver your tax refund a few days earlier.
The IRS estimates that if you mailed your tax return, it could take six to eight weeks for your tax refund to arrive once it has been processed.
What may cause a delay in my tax refund?
Following are some typical explanations for tax refund delays:
Your refund is insufficient or contains mistakes.
Identity theft or fraud may have occurred with your return.
We need to go over your return again.
Your recovery rebate credit and stimulus payment were not correctly reconciled.
Charles P. Retting, the commissioner of the Internal Revenue Service, testified before the House Ways and Means Committee that the IRS received “far more than 10 million returns” last year in which taxpayers failed to correctly reconcile their received stimulus payments with their recovery rebate credit, necessitating a manual review and resolution.
The IRS will notify you if the delay is the result of an essential tax adjustment made to a recovery rebate credit, earned income tax credit, or additional child tax credit claimed on your return. The IRS will first attempt to proceed without informing you if a problem has to be corrected. It will, however, send you a letter if it requires any additional information.
It will also take longer, the IRS estimates six to eight weeks, if you asked for a paper check for your tax refund.
How to trace your refund using the Where’s My Refund feature provided by the IRS
Your Social Security number or Individual Taxpayer Identification Number, your filing status (single, married, or head of household), and your refund amount in whole dollars, which can be found on your tax return, must all be entered in order to use the IRS tracking tools.
Before you begin tracking your refund, wait up to four weeks if you mailed your return, or at least 24 hours.
Enter your personal information on the Get Refund Status page of the IRS website before clicking the Submit button. A page displaying the status of your refund ought to be brought up for you. If not, you might need to double-check your personal tax information and try again. If everything seems accurate, you’ll need to indicate whether you filed electronically or on paper and the date you filed your taxes.
What if I’m trying to find information about tax returns from a previous tax year?
The IRS has information on federal refunds from the previous two years, which is listed in the Where’s My Refund service. You must log into your IRS online account to access information on returns from previous years.
The overall amount you owe, your payment history, significant details about your most recent tax return, notices you’ve received from the IRS, and your registered address can all be found there.
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Both iOS and Android devices support the IRS2Go app.
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Your tax refund status can now be checked on a mobile device via the IRS2Go app. It’s accessible in both English and Spanish for both iOS and Android.
You can check it to see if your return was accepted, whether a refund was issued, and more.
Your Social Security number, filing status, and the anticipated size of your return are required in order to log in. If you don’t see a status change, check back the next day since the IRS changes the app overnight.
The meaning of various IRS tax return statuses
