Are 2021 Tax Refunds Delayed
Taxpayers face “unprecedented” delays getting their refunds, IRS watchdog says. The Internal Revenue Service is facing an even bigger backlog for this tax season than it did a year ago, with delays creating “unprecedented financial difficulties” for taxpayers, according to a report released Wednesday.
How Much Interest Does The Irs Owe Me
If you filed a proper return on time and the IRS does not issue your refund within 45 days after accepting it, the agency is required to start paying interest on your refund amount.
As of July 1, the interest rate rose from 4% to 5% as a result of the Federal Reserve’s recent decision to raise the federal funds rate. If you electronically filed on time, the 45-day period started on April 18. If you filed a paper return, it began the day that the IRS marked your return as “accepted.”
Of course, any IRS interest you receive with your refund is considered taxable income.
How To Contact The Irs: ‘your Best Bet Is To Call First Thing In The Morning’
Given the backlog, prepare to wait a few more weeks than normal, Samuels says. “At this point I would say sit tight for at least four to six weeks. After that, you may want to call the IRS to find out what’s going on,” he says.
Last year, taxpayers who called to ask about their financial situations had just a 1 in 9 chance of being answered and those who did get through lingered on hold for an average 23 minutes, according to an annual report from the Taxpayer Advocate Service.
“Your best best is to call first thing in the morning as soon as the IRS opens at 7 a.m. ET,” Samuels says. “I’ve also heard some people have luck when they call later in the day around 6 p.m. or 6:30 p.m. right before the IRS closes at 7 p.m.”
Video by David Fang
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When Will I Get My Paper Check If My Direct Deposit Is Delayed Or Rejected
At times people will change their bank accounts after their return is filed or provide incorrect account numbers. In these instances the IRS will issue a paper check when they cannot send by direct deposit.
This will delay your refund, but the actually IRS processing time for a paper check is only 2 extra days more than direct deposit.
Usually paper checks are mailed on Fridays and you usually get within 1 week the following Friday or sooner. The US Postal usually dont deliver refund checks until Saturday morning to prevent someone watching your mail and stealing the check.
Tax Payer Identify Verification Delaying Irs Tax Refund Processing And Direct Deposit Payments
In a lot of recent cases, it appears that the IRS is delaying refund processing because they are having to spend a lot more time validating tax payer identities given the rise in online tax related fraud over the last few years. In most cases the IRS will notify selected tax filers via WMR or mail to contact a IRS number to verify their identity. After verification it could take up to 9 weeks for you to get a refund. See more in this article.
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Handling A Refund Delay Do Your Research And Respond Right Away
If the IRS is delaying your refund, youll need to understand why, and navigate the IRS to issue your refund as quickly as possible. This can be a daunting task because refund holds can feel like audits. But, be patient, and dont worry. If your tax return is correct, its just a matter of explaining everything to the IRS.
Best course: If you get a notice from the IRS about your refund hold, immediately investigate the cause. Heres where to start.
Checking The Status Of An Amended Refund
Everyone makes mistakes and every now and then people need to amend the tax return that they filed. The Wheres My Refund? Tool does not work in this situation. You will need to visit another tool called Wheres My Amended Return? Youll need to be patient though, as it takes the IRS more time to process these refunds.
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What About My State Tax Refund
What weve covered so far applies to federal tax refunds. As you might expect, every state does things a little differently when it comes to issuing tax refunds and its not possible to say for sure when everyone will receive their state tax refunds. Although, state refunds often come faster than those being processed through the federal system. This isnt always the case, but it often is.
Generally, you can expect to receive your state tax refund within 30 days if you filed your tax return electronically. If you filed a paper tax return, it may take as many as 12 weeks for your refund to arrive. To find out the status of your refund, youll need to contact your state tax agency or visit your states Department of Revenue website.
You Filed Form 8379 Injured Spouse Allocation
It sounds painful, but this form has nothing to do with physical injuries or disabilities.
When a married couple filing jointly owes a federal debt, the IRS may seize their tax refund in order to offset the money that they owe. If only one half of the couple owes money, the other partner can be considered “injured” and request at least part of the expected tax refund. Enter IRS Form 8379.
While not as common as some of the other causes, this tax-refund delay is significant. According to the instructions of Form 8379, taxpayers filing the form should expect up to 14 weeks of processing time, or up to 11 weeks if filing electronically.
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Why Is My Refund Still Processing After 3 Months
Your refund may be delayed if you made math errors or if you forgot to sign your return or include your Social Security number. It may also be delayed if your dependents’ information doesn’t match IRS records, or if you left out a corresponding schedule or form to support a deduction or credit, says Pickering.
Computation Errors On The Tax Return
The U.S. tax code can be complicated, with numerous exceptions, special circumstances, and phase-outs of deductions, exemptions and credits.
“It’s no surprise that manually prepared returns frequently include math errors,” Holland notes.
Some of the most common calculation errors include the taxable amount of Social Security income, taxable income, and the Child and Dependent Care Credit. Errors in the amount of taxes withheld, estimated taxes paid, the Earned Income Credit or the increased standard deduction for certain taxpayers also frequently result in computation errors on a tax return.
Tax preparation software like TurboTax, which automatically runs required calculations, can help you avoid math errors on your return. TurboTax also checks for errors and calls them to your attention before you file.
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Whats Taking So Long To Receive Refunds
If you dont receive your refund in 21 days, your tax return might need further review. This may happen if your return was incomplete or incorrect. The IRS may send you instructions through the mail if it needs additional information in order to process your return.
You may also experience delays if you claimed the Earned Income Tax Credit or the Additional Child Tax Credit. Under the Protecting Americans from Tax Hikes Act of 2015, the IRS is required to hold tax returns for folks who claimed those credits until Feb. 15. If you claimed either of those tax breaks, a PATH Act message may appear when you use the Wheres My Refund? tool.
If you havent received your refund and youre becoming impatient, calling the IRS will likely not help. Its best to avoid contacting the IRS directly unless the Wheres My Refund? tool prompted you to do so or its been 21 days since you filed your tax return electronically .
Wmr And Irs2go Refund Status Error Codes
When you see an error on the WMR and IRS2Go tool you will get an error code and a short description. Sometimes these can tell you the cause .
But in many cases this provides no help and in that case you should reference the IRS Refund Error Code list to get more details. You can also see the comments below for more errors people are facing.
How Long Does It Take To Get A Tax Refund In 2021
The IRS has stated that mailed tax paperwork is the slowest to be processed, and that a mailed tax return may take six weeks or more to be processed. This may be compounded by the COVID-19 pandemic, with the postal service being delayed in delivering mail and packages for months.
The fastest way to get your tax refund in 2021 is to combine e-filing with direct deposit. The IRS says that it issues 9 out of 10 tax refunds in fewer than 21 days.
I almost keeled over in shock when I checked #WheresMyRefund a date for my deposit instead of the depressing “your tax return is still processing” message I’ve had for the last 45 days. FINALLY! I hope everyone else that’s waiting gets good news soon too!
Reason #2 Irs Holding Your Refund
The IRS can hold your refund and request more information from you in several situations. This doesnt mean youre being audited but it can lead to one if you dont respond with all the information by the deadline.
Here are six of the most common situations when the IRS can hold your return:
You mailed in your return, and the IRS flagged a math error:
When taxpayers e-file their returns, the e-file process catches many return errors and rejects the returns at the time of filing. If you mail your return instead of e-filing it, the IRS is more likely to identify an error after the fact.
The IRS calls most of these errors math errors, but they arent limited to arithmetic mistakes. If your Social Security Number or your dependents information doesnt match IRS records, the IRS can change any related deductions or credits . The IRS can also change your return if you forget to include a corresponding schedule or form to support a deduction or credit.
If the IRS changes your return, youll get a letter asking you to correct the error within 60 days. If you dont provide enough explanation and information, the IRS change is final. At that point, you would have to amend your return and follow up with the IRS to get your refund.
The IRS suspects identity theft:
The IRS is challenging tax credit you claimed:
The IRS identified potential ACA health insurance issues:
You need to file an old return:
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How Can I Track My Refund Using The Where’s My Refund Tool
To use the IRS tracker tools, you’ll need to provide your Social Security number or Individual Taxpayer Identification Number your filing status and your refund amount in whole dollars, which you can find on your tax return. Make sure it’s been at least 24 hours before you start tracking your refund, or up to four weeks if you mailed your return.
Go to the Get Refund Status page on the IRS website and enter your personal data, then press Submit. You should be taken to a page that shows your refund status. If not, you may be asked to verify your personal tax data and try again. If all the information looks correct, you’ll need to enter the date you filed your taxes, along with whether you filed electronically or on paper.
Can I Call The Irs To Get Answers
While you could try calling the IRS to check your status, the agency’s live phone assistance is extremely limited.
The IRS is directing taxpayers to the Let Us Help You page on its website and to get in-person help at Taxpayer Assistance Centers around the country. You can contact your local IRS office or call to make an appointment: 844-545-5640. You can also contact the Taxpayer Advocate Service if you’re eligible for assistance by calling: 877-777-4778.
Though the chances of getting live assistance are slim, the IRS says you should only call the agency directly if it’s been 21 days or more since you filed your taxes online, or if the Where’s My Refund tool tells you to. You can call 800-829-1040 or 800-829-8374 during regular business hours. If you have not received a refund yet, you shouldn’t file a second tax return.
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Why Does My Federal Refund Still Say Processing And Its Been Over Two Months
TurboTax gives you an estimated date for receiving your refund based on a 21 day average from your date of acceptance, but it can take longer.
Once your federal return has been accepted by the IRS, only the IRS has any control. TurboTax does not receive any updates from the IRS. Your ONLY source of information about your refund now is the IRS.
You need your filing status, your Social Security number and the exact amount of your federal refund to track your Federal refund:
Top Reasons Your Tax Refund Could Be Delayed
Most tax returns today are processed within three weeks, with many filers receiving their refunds even sooner. Simple errors or oversights can lead to a delay of your tax refund.
When you’re expecting a tax refund, the last thing you want to do is wait for it to show up. Fortunately, the turnaround time for tax return processing has sped up tremendously over the years, especially since the introduction of the IRS electronic filing, or e-file, system. Most returns today are processed within three weeks, with many filers receiving their refunds even sooner. Today the burden of avoiding delays rests primarily on the taxpayer simple errors or oversights can lead to a delay of your tax refund.
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Reason #1 Irs Taking Your Refund
When the IRS issues refunds, it mainly takes or reduces refunds when taxpayers have debts to pay. Here are the two most common situations:
You owe federal taxes, and you havent paid:
If the IRS took your refund to pay federal income taxes you owe, youll know it a few weeks after you file your return. Youll get IRS notice CP49,Overpayment Applied to Taxes Owed. If you dont think you owed what the IRS says you owed, the only thing you can do is file an amended tax return to correct the tax or contest any extra tax the IRS charged you .
You owe other debts, and you havent paid:
The Treasury Offset Program allows the IRS to take or reduce your refund if you owe other types of debts, including non-tax debts, such as:
- Past-due child support
- State taxes
- Unemployment compensation repayments
The IRS cant answer questions or resolve disputes related to TOP debts. Taxpayers should call TOP at 304-3107 for answers.
Spouses who arent responsible can get their part of the refund
If you filed jointly with your spouse, and the IRS took your full refund for your spouses debts, you can get your portion of the refund. File an injured spouse claim using Form 8379, Injured Spouse Allocation.
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 past 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.
When can you file your 2021 tax return? Anytime between January 24 and April 18, 2022.
Now, when to expect my tax refund based on when it’s accepted!
2022 IRS Tax Refund Calendar
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 .
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How To Get Your Tax Refund Faster
If you’ve already filed your tax return, you won’t be able to speed up the refund process by checking your refund status or calling the IRS. The IRS will contact you if they need additional information to process your return.
If you haven’t filed yet, the IRS offers the following tips to speed up your refund: