Tuesday, October 4, 2022

How Fast Can You Get Your Tax Refund

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Some Tax Refunds May Be Delayed In 2021

Three ways to get a bigger stimulus check using your tax return

In addition to the delays we outlined above, if you claimed the Earned Income Tax Credit and the Additional Child Tax Credit , your tax refund may also be delayed. If you claimed these credits, the IRS started to issue these tax refunds the first week of March if you claimed these credits.

Your financial institution may also play a role in when you receive your refund. Since some banks do not process financial transactions during the weekends or holidays, you may experience a delay in processing. If you opt to receive your tax refund by paper check, use our tax refund schedule to determine when you can expect to receive your refund.

Finally, you can expect your tax refund to be delayed if you filed an amended tax return. The IRS processes amended tax returns from three weeks up to 16 weeks after receipt. You can check the status of your amended tax return here.

Use Your Refund To Buy Savings Bonds

The IRS has offered a savings bond purchase option since 2010. You can specify that you’d like to use all or a portion of your refund to purchase U.S. Series I Savings Bonds when you file Form 8888 with your tax return.

You’ll need to complete Part II of the form, and you’ll receive your paper savings bonds within three weeks. You can buy them for yourself or for any other beneficiary you name on the form. You’re limited to a total purchase of $5,000 in bonds per calendar year.

The first $250 worth of savings bonds you purchase will be filled in $50 denominations, meaning you’ll receive bonds worth $50 totaling up to $250. Any amount over $250 will be filled using the fewest number of bonds possible.

For example, if you buy $900 worth of savings bonds, you’ll receive six $50 bonds , one $100 bond, and one $500 bond for a total of $900 worth of savings bonds.

Choosing to buy savings bonds with your refund means you won’t receive that portion of your refund in cash. Instead, you’ll receive savings bonds worth this amount as an investment.

The bonds will then earn two types of interest until they are redeemed or reach maturity: a fixed, standard rate, plus a rate that’s adjusted for inflation.

Were You Lucky Enough To Be Able To Work From Home

Lots of people will be disappointed because they won’t get a tax break after packing up and taking their office job home during the pandemic.

If you’re an employee of a school district or an automaker, for example, the tax rules don’t allow you to claim a home office deduction for unreimbursed business expenses relating to working from home. That’s the case if you’re working for someone else.;

After some significant changes in the tax rules and the economic fallout;last year, tax season won’t be simple. But really, when is it ever?;

ContactSusan Tompor;via;. Follow her on Twittertompor. To subscribe, please go to freep.com/specialoffer.;Read more on business and sign up for our business newsletter.

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Video: What Days Of The Week Does The Irs Deposit Tax Refunds

OVERVIEW

There is no doubt that many taxpayers file their returns before the filing deadline so they can get their tax refunds quickly. But remember, the IRS does need some time to process your tax return before it can issue the refund. Watch this video to learn more about when you’ll be receiving your tax refund.

For information on the third coronavirus relief package, please visit our American Rescue Plan: What Does it Mean for You and a Third Stimulus Check blog post.

Note: The video and transcript refer to the traditional tax filing deadline in April. The IRS recently extended the 2020 federal tax filing and payment deadline for most taxpayers to May 17, 2021. For additional questions and the latest information on the tax deadline change, visit our IRS Announced Federal Tax Filing and Payment Deadline Extension blog post.

Tips On Lowering Your Tax Liability

Can You Get Your Tax Return On A Saturday
  • There are plenty of tax credits and deductions you may not even be aware of. A financial advisor can help you find them to minimize your tax burden each year.;SmartAssets free tool;matches you with financial advisors in your area in 5 minutes. If youre ready to be matched with local advisors who can help you achieve your financial goals,;get started now.
  • You can also make filing taxes easier by using one of the many software options out there. To help you find the right one, we published a report on the best tax software available.
  • If you want to figure out how much you will likely pay in income taxes,;SmartAssets free income tax calculator;can help you plan ahead.

Recommended Reading: What Is The Date To Pay Taxes

What Is Happening When Wheres My Refund Shows My Refunds Status As Approved

Weve approved your refund. We are preparing to send your refund to your bank or directly to you in the mail. This status will tell you when we will send the refund to your bank . Please wait 5 days after weve sent the refund to check with your bank about your refund, since banks vary in how and when they credit funds.

Coronavirus Pandemic Delays And Date Changes

Last year, we saw the tax deadline move to July, and saw a lot of delays due to the pandemic. We don’t expect the tax deadline to move this year, but if anything changes, we will report it.

However, we do expect this pandemic to cause serious delays in processing returns . As IRS workers are quarantined or asked to work from home, it will cause delays for tax filers. Furthermore, with the latest round of stimulus checks going out in January, and programming needed for last minute tax changes passed in December, we do think the IRS is stretched to it’s limits.

One of the biggest areas of delays are mail returns. In 2020, we saw mail held up for months, and we expect mail delays to continue. If possible, always eFile. Sending your return via mail will cause significant delays in processing.

If you’ve already filed your return, our assumption is there will be continued delays in processing times. If your return is under review or other information is needed, you may experience significant delays due to staffing.

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How Can I Check The Status Of My Tax Return

After your return has been accepted, you are on the IRS payment timetable.

The average American tax refund is nearly $3,000 and that tax refund might be the biggest check you get all year. Many Americans will be counting down the day to get that money in their hands after hitting the e-file button.

If you e-filed your taxes online, you have the option of getting your refund deposited directly into your account. This is the fastest way to get your federal tax refund. 9 out of 10 e-filed tax returns with direct deposit will be processed within 21 days of IRS e-file acceptance.

If you filed your tax return on paper through the mail, you can expect a process time of 6 to 8 weeks from the date the IRS received your tax return documents.

Heres the process in which the IRS processes your tax return:

  • Check status 24 to 48 hours after e-filing using the IRS app or visiting the Wheres My Refund? Tool online. If you filed a paper tax return, you can start checking your status 4 weeks after the IRS has received your documents.
  • Use the IRS Wheres My Refund tool for your Return Received Notice. Once you see a Return Received status, the IRS has begun processing your tax return. You will only see a refund date listed when the IRS has finished processing your tax return and approves your tax refund.
  • Once you see that your status has changed from Return Received to Return Approved, the IRS has finished processing your tax return and has confirmed your tax refund.
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    Did You Collect Unemployment Compensation In 2020

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    The coronavirus-induced recession triggered massive unemployment across the U.S.

    Making matters worse at tax time, those jobless benefits must now be included in taxable income on federal returns and on many state returns, including Michigan.;

    We could be talking about adding on a good deal of income. The CARES Act boosted jobless benefits by an extra $600 a week beginning in April through July, on top of a state’s regular benefits. As a result, some people nationwide may have received $1,000 or so a week in jobless benefits for four months.;

    More:Lost a job? How to pay taxes on unemployment benefits

    The tax season shocker for many jobless people will be that their tax refund could be far smaller than expected or they might even owe taxes.;

    Look out for;Form 1099-G,;Certain Government Payments, to show how much unemployment compensation was paid to you in 2020. See Box 1 for the taxable income you must report on Line 7 on Schedule 1 of the 1040.

    See Box 4 for any taxes that you might have withheld from your jobless benefits during the year. You’d report those withholdings on Line 25b of the 1040.

    Taxes are not withheld automatically from jobless benefits. If you are jobless in 2021, and receiving unemployment compensation, you may want to take action to have federal taxes withheld in the;future.;

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    Irs Refund Schedule Chart

    Here is a chart of when you can expect your tax refund for when the return was accepted . This is an estimate based on past years trends, but based on early information, does seem accurate for about 90% of taxpayers.;Also, as always, you can use the link after the calendar to get your specific refund status.;

    Now, when to expect my tax refund!

    2021 IRS Tax Refund Calendar

    Date Accepted

    If, for some reason, you didnt receive your return in the time specified above, give or take a few days, you can always use the IRSs tool called Get Refund Status. Since the link requires personal information, here is the non-html version: https://sa2.www4.irs.gov/irfof/lang/en/irfofgetstatus.jsp.

    Once you enter all your information, it will tell you what is going on with your refund. Remember, if you input the wrong SSN, it could cause an IRS Error Code 9001, and might make your return be held for Identity Verification.

    Also, many people are concerned because they received a Reference Code when checking WMR. Here is a complete list of IRS Reference Codes. Just match up the code with the one in the list, and see what the problem could be. As always, if you are concerned, you can .

    Looking for an old IRS refund chart? We saved them for you below.

    Prior Years’ Tax Refund Calendars

    How Tax Refunds Work

    A tax refund is a reimbursement for excess taxes paid during the year. Most workers prepay their federal income taxes through their paycheck or by filing quarterly estimated taxes.

    Employees are required to fill out a Form W-4 when they begin working at a company. The information entered on employees’ Form W-4 determines how much the employer will withhold from their pay to cover federal income taxes. If the employer withholds too much, you may receive a tax refund. If you come up short, you will owe taxes.

    A contract worker is considered both an employee and an employer. They do not complete a Form W-4; instead, they are required to pay their own taxes on a quarterly basis.

    Estimated tax payments for 2021 are due April 15, 2021; June 15, 2021; Sept. 15, 2021; and Jan. 18, 2022.

    This is true even though the tax filing deadline for 2020 individual income taxes was moved to May 17, 2021.

    You may also receive a tax refund if you claim a refundable tax credit, such as the Earned Income Tax Credit . Most federal income tax credits are non-refundable and will only reduce the amount you owe in taxes. However, if you claim a refundable tax credit that is greater than the amount you owe, you will receive the difference as a tax refund.

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    What If I Dont File Electronically

    You can still file your income taxes the old-fashioned way by mailing in your return and receiving a paper check if you prefer. However, you wont receive your tax refund nearly as quickly.

    According to the IRS, taxpayers who mail in their returns but choose direct deposit of their refund will generally receive their refund in about three weeks. Those who e-file their returns but choose to receive a paper check in the mail will generally receive their refunds in about one month. And those who mail in their returns and choose to receive a paper check in the mail will generally receive their refunds in about two months.

    Some Tax Returns Take Longer To Process Than Others For Many Reasons Including When A Return:

    Can You Get Your Tax Refund Directly Deposited
    • Includes errors, such as incorrect Recovery Rebate Credit
    • Is incomplete
    • Needs further review in general
    • Is affected by identity theft or fraud
    • Includes a claim filed for an Earned Income Tax Credit or an Additional Child Tax Credit. See Q&A below.
    • Includes a Form 8379, Injured Spouse Allocation, which could take up to 14 weeks to process

    For the latest information on IRS refund processing during the COVID-19 pandemic, see the IRS Operations Status page.

    We will contact you by mail when we need more information to process your return. If were still processing your return or correcting an error, neither Wheres My Refund? or our phone representatives will be able to provide you with your specific refund date. Please check Wheres My Refund? for updated information on your refund.

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    Is It Faster To File Electronically Or Mail In My Return

    In;most cases it is faster to file your return electronically.;The IRS;receives these returns faster than ones that were mailed in, which;shortens the;time in between;when you;submitted;your return and;when youll;receive;your refund.;;

    File electronically with TaxSlayer and choose direct deposit to receive your refund sooner.

    For more info about;the advantages of electronic tax;filing,;read;5 Reasons Why You Should File Your Taxes Online.;;

    Various Factors Can Affect The Timing

    The 2021 tax season kicked off around two weeks later than normal this year, due to recent changes in the federal tax law. However, the delay shouldnt affect when your tax refund will arrive. The majority of taxpayers should get their tax refund within 21 days of filing. The Internal Revenue Service said it expects to deliver the first round of refunds during the first week of March, which is the same time frame as if filing season had opened in January.

    Though its impossible to predict the exact day your tax refund will arrive, there are some factors that can influence your timeline.

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    Keep Track Of Your Tax Refund

    Once youve filed your return, track;your refunds whereabouts with the IRS and your state.;Though tracking your refund wont actually make things move faster, it at least gives you a better idea of when to expect your money. If you e-filed your federal return, you usually can begin tracking your refund 24 hours after the IRS accepts your tax return. If you mailed your tax return, however, youll have to wait four weeks. You should be notified when the IRS receives your return, when it approves the;return and when it sends your;refund.

    What Is The Child Tax Credit

    Will your tax refund check be on time?

    The;Child Tax Credit is;designed to give an income boost to the parents or guardians of children and other dependents. It only applies to dependents who are younger than 17 as of the last day of the tax year. The credit is worth up to $2,000 per dependent for tax year 2020, but your income level determines exactly how much you can get. Previously, you needed at least $2,500 to qualify for the CTC. Then it phased out for income above $200,000 for single filers and $400,000 for joint filers. If your earned income was above the applicable threshold, you were entitled to a partial credit.

    The CTC has been refundable up to $1,400. That means if you qualify for the CTC and it brings your tax liability below zero, the IRS would send you the remaining amount of the credit, up to $1,400.

    The Internal Revenue Service will begin the monthly payments on the 15th of every month beginning in July and continuing through December. An estimated 39 million households with some 65 million children are expected to receive the temporary benefit. Parents who qualify will receive $300;monthly for each child under age 6 and $250 for each one from 6 to 17.

    As a reminder, tax credits directly reduce the amount you owe the IRS. So, if your tax bill is $3,000 but youre eligible for $1,000 in tax credits, your bill is now $2,000. This differs from a tax deduction, which reduces how much of your income is subject to income tax.

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    Are There Any Important Tax Dates To Know

    Yes, the following dates are important to keep in mind for tax season.;

    • Deadline to file;and pay your tax bill if you have one;is May 17, 2021;
    • Deadline to file;an extended return;is October 15, 2021

    ;Click;here;for;a more complete list of;important tax;dates.;

    The information in this article is current through tax year 2020.;

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