Get ahead of the game by understanding when to expect your IRS tax refund. Learn how filing electronically and choosing direct deposit can speed up the process, and discover what to do if there are issues with your return.
Tax season has officially begun, and many Americans are eagerly awaiting their refunds. According to a recent survey conducted by Qualtrics for Intuit Credit Karma, over one-third of taxpayers rely on their tax refunds to make ends meet.
A tax refund is a payment made by a government to an individual or business when their taxes have been overpaid.
According to the IRS, in 2020, the average tax refund was $2,962.
The most common reasons for receiving a tax refund include overpayment of income tax, excess withholding on payroll deductions, and credits such as the Earned Income Tax Credit (EITC) or Child Tax Credit.
Taxpayers can receive their refunds via direct deposit, paper check, or prepaid debit card.
The reasons for this dependency vary, with nearly half (45%) citing the rising cost of living and necessities such as housing and groceries. Other common reasons include inflation (41%), living paycheck to paycheck (37%), and depleted savings (21%).
How Long Does it Take to Receive a Tax Refund?
“The time it takes to receive a tax refund depends on how you file your taxes and how you choose to receive your refund.”
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If you file electronically and your return is accurate and complete, the IRS says it should take less than three weeks to receive your refund. This processing time can be even shorter if you opt for direct deposit.
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If you mail in a paper return, the refund should be issued within roughly six to eight weeks of the date the IRS receives the filing, assuming it’s accurate and complete.
How to Track Your Refund
Once you file your taxes, you can track your refund on the IRS website. To do so, you’ll need:
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Your Social Security number or individual taxpayer ID number (ITIN)
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Your filing status
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The exact amount of your refund
“The IRS updates information daily, overnight.” Once a refund is marked as sent, it may take 5 days for it to show in your bank account or several weeks for your check to arrive in the mail.
Potential Delays
If there are issues with your tax return requiring more information or additional review, the IRS will send you a letter and your refund could be delayed.
