How long does a tax return take?

Amal_Warda · March 21, 2022, 2:33pm

How long does a tax return take? If you file a complete and accurate paper tax return, you should get your refund within six to eight weeks after the IRS receives your return. Your refund should be given in less than three weeks if you file your return electronically and even faster if you choose direct deposit.

How long does a tax return take?

If you file a complete and accurate paper tax return, you should get your refund within six to eight weeks after the IRS receives your return. Your refund should be given in less than three weeks if you file your return electronically and even faster if you choose direct deposit.

How you file your tax return will have a big impact on when you obtain your refund. E-filing your return and receiving your return via direct deposit is the quickest alternative. The majority of taxpayers who chose this route will receive their refunds within 21 days after filing their 2021 taxes, which will be filed in 2022.

That means that three weeks after the IRS accepts your tax return, your refund will arrive in your bank account. After that, it could take a few days for your bank to make the funds available to you.

Your return will take longer to process if you file a paper return or request a paper check for your refund. It will take two months or more to file a paper return and receive your refund in the form of a paper check.

Returns Incorporating the EITC or ACTC

You may have to wait a little longer for your return if you claimed the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC). The IRS is required by law to keep refunds from these returns on hold until February 15th.

According to the IRS, the refund won’t arrive in your bank account until late February. You should expect a longer refund if you don’t choose direct deposit or if there are issues with your return.

Status of Tax Return

You can utilize the IRS website’s Where’s My Return? Feature to check the status of your federal tax refund. You can also use the IRS2Go smartphone app to access that function. If you file electronically, the status of your return will normally be accessible within 24 hours. If you mailed a paper return, you’ll have to wait at least four weeks to find out how it’s doing.

To check the status of your return, you’ll need three pieces of information:

Your Social Security number (SSN)
Your filing status
The amount of your anticipated reimbursement in precise dollars
If you filed an EITC or ACTC return, the IRS says your refund status should be updated by late February.

Summary

Your refund should be given in less than three weeks if you file electronically. Filing a paper return and obtaining your refund in the form of a paper check will take two months or more. If you filed an EITC or ACTC return, the IRS says your refund status should be updated by late February. If you mailed a paper return, you’ll have to wait at least four weeks to find out how it’s doing. You can utilize the IRS website’s Where’s My Return? Feature to check the status of your tax refund.

Why is your return taking so long to arrive?

For a variety of reasons, your reimbursement may be delayed. In certain circumstances, you’ll simply receive the funds later than anticipated. In some cases, the IRS will send you a letter requesting additional information before completing your return and sending your refund. Remember that if the IRS has problems with your return, it will never call you that’s usually a fraud but will instead send you a letter.

If you receive a notice from the IRS regarding your return, act quickly. “Once you’ve determined that it’s legitimate,” Kathy Pickering, H&R Block’s chief tax officer, advises, “you should answer in the manner required in the letter.” “If you don’t react, the IRS is unlikely to issue your refund or complete the processing of your tax return on time.”

Here are some possible causes for the delay in your refund:

1. Delays and errors

According to the IRS on February 14, tax returns with concerns relating to the third stimulus check, missing information, or suspected fraud or theft might take up to 90 days to resolve.

Due to no fault of their own, some taxpayers may claim the erroneous amount on their tax returns this year. On February 14, the IRS also announced that some of its Child Tax Credit letters, letter 6419, had erroneous information concerning the amount received by some taxpayers. According to the IRS, taxpayers should refer to the letter when submitting their tax forms.

However, according to Larry Gray, a CPA and government relations liaison for the National Association of Tax Professionals, if this occurs, the taxpayer’s return may not match what the IRS has on file, resulting in the return being flagged and delays in processing and receiving their refund.

On a conference call to discuss tax professionals’ concerns about the current tax season, he stated, “People may not know the letter could be erroneous, and what is the IRS doing to send out a follow-up communication to avoid creating a worse backlog in the following season?”

2. The Income Reported Doesn’t Match IRS Records

When you receive W-2s or 1099s, the IRS receives copies as well. If the numbers you provide and the information the IRS receives don’t match, your return could be delayed while the IRS works out the details.

“It moves to the error resolution path if data on your tax return doesn’t match data in the IRS systems,” explains Mark Steber, chief tax information officer for Jackson Hewitt Tax Service. Make sure you don’t miss any revenue when filing your taxes, especially if you have multiple side hustles.

3. Inconsistent Direct Deposit Accounts

If you choose direct deposit but the ownership of the bank account does not match the filing status on the return for example, if the refund is deposited into an account for one spouse when the return was filed jointly your refund may be delayed, according to Barbara Weltman, author of J.K. Lasser’s 1001 Tax Tips. 2022 Deductions and Tax Breaks The refund may be delayed in this scenario, and the IRS may send a printed check.

4. The Internal Revenue Service suspects identity theft or fraud.

Pickering explains that “IRS identity theft filters sometimes delay returns and tax refunds until taxpayers prove their identities.” “You’ll very certainly need to give information from last year’s return, your current year return, and your current year Forms W-2 and 1099 to the IRS Taxpayer Protection Program unit.”

5. Doing Double Duty on Dependents

According to Susan Carlisle, a CPA in Los Angeles, because tax-filing software is simple to use, several young adults submitted their tax returns without coordinating with their parents’ forms. “Many students learned they could file their taxes online,” she adds, adding that many took their exemption.

You can’t do both if their parents claim them as dependents. “As a result, reimbursements are halted until the issue is remedied, and someone will need to file an amended return,” she explains.

6. You Must Submit an Old Tax Return

“The IRS has the ability to freeze any refunds owing to you until you file the old return,” Pickering explains. “Filing a past-due return is the only way to address this matter and receive your reimbursement. If you owe taxes from a previous year’s return, the IRS will deduct that amount from your current-year refund.”

7. You’ve sent in Your Return

The IRS always takes longer to process paper returns, and it might take significantly longer if the return has errors or inconsistencies. “The e-file procedure captures numerous return problems and rejects the returns at the time of filing,” Pickering explains.

Summary

In some cases, the IRS will send you a letter requesting additional information before completing your return and sending your refund. Delays and errors may take up to 90 days to settle. Due to no fault of their own, some taxpayers may claim the erroneous amount on their tax returns. If you choose direct deposit but the ownership of the bank account does not match the filing status on the return, for example, your refund may be delayed. Identity theft filters sometimes delay returns and tax refunds until taxpayers prove their identities.

Within 21 days of filing, refunds must be received.

If all goes according to plan, taxpayers who e-file can receive their refunds via direct transfer as soon as one week after filing, according to the trade publication CPA Advisor. It’s also worth noting that, according to the IRS website, processing time slows down as tax season approaches and the IRS gets more returns.

Meanwhile, tax experts say there are several actions individuals can take to secure a timely tax refund, which is especially crucial this year because the IRS is starting the year with a backlog. The National Taxpayer Advocate, Erin M. Collins, told Congress in January that she is “extremely concerned” about the next filing season because of the backlog and other issues.

“The first thing you need to know if you’re going to cook a dinner is that the kitchen has to be clean after the last meal,” stated Mark W. Everson, former IRS Commissioner and vice chairman of Alliant group. “It’s just going to snowball into a disaster.”

Collins claimed in her report, which portrayed an agency in crisis, that one of the agency’s most serious problems is the processing of tax returns. The message is getting through to the general public in the United States:

Potential IRS processing delays ranked second among the top three concerns of customers expecting an IRS return this year, according to a Bankrate.com poll of nearly 2,500 respondents released February 22. (The top two fears were that a refund would be smaller than expected and that a refund would lose purchasing power owing to inflation.)

Tax returns may be delayed

Although the IRS claims that most refunds would be issued within 21 days, experts caution that delays are inevitable due to the agency’s ongoing work on 2020 tax returns.

According to the most recent IRS data, the IRS processed over 240 million tax returns and issued nearly $736 billion in refunds for the 2020 budget year, including $268 billion in government stimulus payments. Approximately 60 million people contacted or visited an IRS office during that period.

In 2022, Donald Williamson, a professor of accounting and taxation at American University in Washington, predicts “weeks and weeks” of IRS delays. “In 2022, my recommendation is to file early, get started tomorrow, and work with an expert to put your taxes together.”

Tax preparers told CBS MoneyWatch that it’s still difficult to reach IRS officials on the phone, which adds to the difficulty. During the fiscal year 2021, the IRS only answered roughly one out of every nine taxpayer calls, according to Collins. “Many taxpayers are frustrated because they are not getting answers to their issues,” she said.

“In the old days,” Christian Cyr, a CPA and president and chief investment officer of Cyr Financial, said, “you’d wait 5-10 minutes and get an IRS representative on the phone.” His CPAs now have to wait hours to meet with an IRS person, with no guarantee of ever speaking with one, he said.

Given that the average refund last year was almost $2,800, ensuring a flawless tax file has a lot riding on it. Tax professionals and the IRS offer advice on how to secure a tax refund within 21 days of filing.

1. File electronically

This is a step that the IRS is asking you to take this year. Even though some people prefer to file paper returns and others have no choice, the IRS claims that taxpayers who file electronically have a better chance of having their returns completed fast. This is because the IRS uses computers to process filed returns electronically, whereas paper returns must be handled by humans. The IRS closed its offices and personnel stopped opening mail in the early days of the pandemic, slowing the processing of paper returns.

Aside from the strains on employees caused by the pandemic, the IRS’ workforce hasn’t kept pace with population growth. Despite a 60% increase in population, the agency’s employment has remained unchanged since 1970. This means that fewer personnel can manage a higher volume of returns.

According to data from the Taxpayer Advocate Service, about 10 million persons filed paper forms last year, accounting for about 7% of the 148 million returns filed in 2021. Experts advise people to join the 138 million taxpayers who already use electronic filing.

“Paper is the IRS’s Kryptonite, and the agency is still buried in it,” National Taxpayer Advocate Collins stated on Wednesday.

2. Request a direct deposit reimbursement.

Taxpayers should also set up direct deposits for their refunds, according to the IRS. According to the agency, the quickest way to get your money is to use a combination of e-filing and direct deposit, which deposits money immediately to your bank account. Around 95 million customers received refunds last year, with about 87 million choosing direct deposit.

According to the IRS, most taxpayers who file electronically and choose direct deposit will receive their refund within 21 days, assuming there are no issues with the return.

3. Don’t make educated guesses.

The IRS matches its information to what people say on their tax returns. If there’s a mismatch example, your W2 shows you made $60,000 but you claim $58,000 on your return the return is highlighted for manual review by an employee. As a result, your tax return may be delayed for weeks, if not months.

That’s why tax professionals advise consumers to double-check their forms to ensure they’re accurately reporting data. “Word of mouth or the honor system” should not be used to fill out your tax return, according to Cyr. “I can assure you that this will cause delays.”

4. Keep all stimulus and CTC letters from the IRS

The IRS is delivering letters to individuals who received the third federal stimulus check-in 2021, as well as advanced Child Tax Credit payments, this month.

These letters will tell each taxpayer what they received in 2021 as a result of these initiatives they’re vital documents to keep since you’ll need to refer to those figures when filling out tax forms.

The fact that taxpayers made mistakes in declaring their 2020 stimulus payment amounts on their returns caused their tax files to be identified for manual review was a major reason for the 2021 tax return delay.

Everson cautioned, “Don’t have any problems that are caused by your negligence.” However, because some taxpayers received inaccurate CTC letters, the IRS is asking them to double-check how much they received by entering into their IRS.gov accounts.

Two letters will be sent by the IRS:

Letter 6419 – notifying taxpayers of their CTC payments in advance. In December, the agency began mailing these letters, and it will continue in January.
Letter 6475, which concerns the third stimulus check. Late in January, that letter will be dispatched. Keep both of these letters and use them to complete your tax return, according to tax experts.

If you claim these tax benefits, you may face a delay. Even if you complete everything right, there are a few issues that could cause delays. The IRS warns that refunds including the Earned Income Tax Credit (EITC) or the Child Tax Credit will be delayed until mid-February. “The statute provides this additional time to assist the IRS in preventing bogus returns,” the IRS said this week.

If your tax return includes either of those tax benefits, you may not receive a refund within the 21-day time frame even if you file as soon as feasible on January 24. In reality, those who claim these credits are being told by the IRS that they would most likely receive their refunds in early March if they filed their forms on or around January 24.

The reason for this is due to a 2015 rule that slows refunds for persons who claim these benefits. The regulation was enacted to target fraudsters who use identity theft to steal taxpayer refunds.

Summary

Tax returns may be delayed, according to experts. Refunds must be received within 21 days after filing. Taxpayer e-file can receive their refunds via direct deposit as soon as one week after filing if all goes according to plan. The National Taxpayer Advocate is concerned about this year’s filing season.

Where’s my tax refund?

Have you ever wondered what happens after you file your tax return and get your refund? When you press the green button to send your tax return, this is what happens. We submit the return to the government after “stamping” it with an electronic postmark.

Then we both wait for the IRS to accept your return, which can take anywhere from 24 to 48 hours. What exactly are they up to? They’re double-checking your personal information to see whether it matches what they have on file.

The IRS accepts your return if everything appears to be in order. You’ll be on the IRS payment schedule once you’ve been accepted. Only the IRS knows where your tax return is in the processing queue, whether you owe money or are due for a refund.

Last year, the IRS issued more than 9 out of 10 refunds to taxpayers in fewer than 21 days, compared to less than 21 days in previous years. In 2021, the same results are projected.

Beginning 24 hours after you e-file, you can utilize the IRS Where’s My Return? tool or call the IRS at 800-829-1954 to check on the status of your refund. As soon as your tax return and refund are authorized, the IRS will give you an exact refund date.

There are a few ways to verify the status of your refund once you’ve e-filed your tax return. You can utilize the IRS Where’s My Refund? tool to find out where your refund is (fastest option)

Call the Internal Revenue Service at 800-829-1954 Based on the processing of your tax return, the tool will provide you with personalized refund information. As soon as the IRS reviews your tax return and confirms your refund, they will provide an exact refund date.

The majority of refunds are processed in less than 21 days. After you’ve e-filed your return, you’ll be able to monitor the status of your refund within 24 hours. Remember that e-filing and selecting direct deposit is the quickest way to receive your refund.

Summary

The IRS accepts your tax return if everything appears to be in order. You’ll be on the IRS payment schedule once you’ve been accepted. Smart Asset’s free tool matches you with up to three local financial advisors, and you may interview them for free. Start looking for a financial advisor today.

Tips for Getting Through Tax Season

Taxes are only a small part of your entire financial situation. For all of your financial goals, a financial advisor can help you plan your retirement, estate, and tax strategy. Smart Asset’s free tool matches you with up to three local financial advisors, and you may interview them for free to choose which one is best for you. If you’re ready to achieve your financial goals, start looking for a financial counselor immediately.
If you still have to submit your taxes, make sure you think about all of your options. H&R Block and TurboTax are two of the most popular tax-filing services. Both are simple to use and include step-by-step instructions to help you optimize your profit. To find out which is better for you, compare TurboTax and H&R Block on Smart Asset.
Tax returns are handled by state governments using their procedures. In some jurisdictions, you’ll get your refund in a matter of days, but in others, it could take weeks or months. Learn how to verify the status of your state tax refund.
If you’re having trouble making ends meet and relying on your tax refund, you might be able to adjust your tax withholding. If you claim more or fewer allowances on your W-4, your employer will deduct more or less tax from your paycheck.

Less tax withholding means more money in your pocket. If you get a large refund at tax time, you may be able to increase your allowances.

FAQ’s

1. How long does it take for a refund to be approved in 2021?

In most cases, the IRS issues refunds in less than 21 days. Beginning 24 hours after you e-file, you can utilize the IRS Where’s My Return? tool or call the IRS at 800-829-1954 to check on the status of your refund. As soon as your tax return and refund are authorized, the IRS will give you an exact refund date.

2. What does it mean when it says congratulations the IRS accepted your return?

Congratulations! Accepted implies your e-file has passed scrutiny (e.g., Social Security numbers are correct and dependents haven’t been claimed before) and the IRS has received your tax return.

3. Why is my refund taking so long?

If you don’t get your refund within 21 days, your tax return may need to be reviewed again. If your return was incomplete or erroneous, this might happen. If the IRS needs further information to process your return, it may send you instructions via mail.

4. Are refunds taking longer this year?

COVID-19 Processing Delays
We’re taking longer than usual to process sent correspondence, and it’s making us more than 21 days to process refunds for some written and e-filed 2020 tax returns that need to be reviewed. Please accept my heartfelt gratitude for your patience. In less than 21 days, the IRS processes more than 9 out of 10 refunds.

5. How long does it take to get accepted and approved?

From acceptance to approval, it can take anything from a few days to three weeks (21 days), and this timeline is unrelated to how, where, or when you filed, nor to how quickly you received your refund last year.

6. Is the IRS behind on refunds 2021?

This is partly due to the IRS’s massive backlog of 2021 returns. The IRS had a backlog of 6 million unprocessed individual returns as of December 31, down from a peak of 30 million in May, but significantly higher than the 1 million unprocessed returns seen around tax season’s start.

7. When can I expect my tax refund in 2022?

More tax refunds will be paid on March 1

On March 1, 2022, it could be heading your way. If you claimed the EITC or ACTC, your refund money could arrive on March 1 if the following conditions are met: You submitted your tax return via the internet. You have the option of receiving your refund via direct deposit.

8. What day do IRS deposit refunds?

Electronically filed tax returns must be received by January 24 to be submitted by January 31. Those who arrive by the 31st of January will be dispatched on February 11th. The following table lists the due-by date on the left, followed by the due-by date for the tax refund. What is the IRS CP80 Notice for the 2022 Tax Season?

9. Can tax refunds come early?

Depending on when a taxpayer files, their tax refund payments (check or direct transfer) can arrive in as little as 2-3 weeks. Early tax filers who are due a refund might typically obtain their money as early as mid or late February, just like in pre-Covid years.

10. Can a refund be rejected after being accepted?

No. The IRS cannot reject your return once it has been accepted. They may, if necessary, issue a letter or notification requesting extra assistance.

Conclusion

The length of time it takes to get your tax refund is determined by how and when you file your return. The fastest approach to earn your refund is to e-file your return and choose direct deposit as your method of payment. The IRS has stated that the vast majority of e-filers (who also use direct deposit for refunds) will receive their refund within 21 days for the 2021 tax year.

Sending a paper return or obtaining your refund in the form of a paper check can cause processing to take months. During the beginning and end of the tax season, the IRS also processes returns more slowly. That’s because that’s when the majority of taxpayers file their returns.

How long does a tax return take?