If you’ve been waiting for your tax refund for more than three weeks, here’s why.
In Taxes 2022, CNET reviews the best tax software and covers everything you need to complete your return fast, precisely, and on time.
If you filed your taxes electronically and set up direct deposit but haven’t received your refund, there may be a problem.
Tax refunds arrive in about 21 days if no problems. The IRS said on March 23 that some returns may take longer than expected and identified frequent circumstances that may cause a delay.
In particular, when making large purchases or paying payments, the IRS warns taxpayers not to rely on a specific refund date. You should also be aware that the bank may take several days to process the deposit. Online payment systems like Venmo and Cash App cut processing time in half.
Listed below are some frequent reasons why your IRS refund may be delayed this year. Learn how to open an online IRS account, select the finest free tax software, and track your refund to your bank account or mailbox.
If you haven’t filed yet, you’ve got until April 18 to do so. We’ll keep you posted.
Is Your Tax Return Erroneous
When filing your taxes, double-check all information to ensure it’s correct. Don’t mix up state and federal taxes withheld.
Before sending your taxes to the IRS, double-check for errors and make sure you’ve filled out every field.
Also, if you received child tax credit payments last year, verify the amount on Letter 6419. If you enter an inaccurate amount, the IRS will need to review your return, causing an “extensive wait.”
If an error occurs after you file your return, the IRS will attempt to correct it without notifying you.
That means you may not notice an issue for days or weeks.
If You Owe The IRS
If you owe back taxes to the IRS, the government may seize a portion or all of your refund.
If your return is larger than your debt, you’ll get the difference via direct deposit or cheque, but it may take a while.
The IRS should send a CP49 warning to taxpayers whose refunds are utilised to fulfil previous payment obligations.
In some cases, the IRS can keep your tax refund even if you owe other state or federal agencies.
The Treasury Offset Program allows the IRS to use your tax refund to pay child support, state taxes, or unemployment compensation.
These debts might delay or destroy your remaining tax refund. Your bank details are wrong
Have you moved your bank accounts since you last filed? If so, pay particular attention to the direct deposit details this year.
If you neglect to update it with your new direct deposit information, the IRS will return your refund.
A paper cheque will be mailed to your address, which may take several weeks.
You Used Paper to File
Using electronic filing and direct deposit will help people collect their refunds faster this year. It may take a while for the IRS to receive your return and issue a paper check due to mail delays.
The IRS says filing your return online rather than by mail is critical this year to prevent refund delays. Instead of a paper return, try one of these free online tax filing services to get your refund faster.
You Misentered Your Stimulus Payments
In 2021, most Americans received a third COVID-19 pandemic stimulus check. While the money isn’t taxed, it must be reconciled to obtain the recovery rebate credit.
The IRS “received considerably more than 10 million returns” in 2020 when taxpayers failed to properly reconcile their stimulus payments with the amounts reported for their recovery rebate credits, according to IRS Commissioner Charles P. Retting. Returns need to be manually reviewed, causing delays.
Learn How to Avoid This Error Using Irs Letter 6475 or Your Online IRS Account if You Plan to Claim the Recovery Rebate Credit
Since mid-February, the CTC has been disbursed.
That form, Injured Spouse Allocation,
This form isn’t related to physical injuries or limitations.
If a married couple filing jointly owes federal taxes, the IRS may confiscate their refund to pay their obligation. If only one partner owes money, the other can claim “injury” and claim a portion of the expected tax refund. Enter 8379.
While not as common as other factors, this one is noteworthy. It takes up to 14 weeks to process Form 8379, or 11 weeks if filed electronically.
The IRS Suspects ID Fraud.
If the IRS suspects identity theft on a tax return, it will hold your refund until your identity is verified. If that happens, expect a 5071C letter with instructions for verifying your identification. Do not fear if your tax return is valid; an IRS letter does not prove identity theft, only a suspicion.
Taxpayers can either create an ID.me account or contact a dedicated phone number indicated on the IRS letter to verify their identity. If none of those work, you’ll need to visit an IRS office in person.
Create an “Identity Protection PIN” (IP-PIN) to minimise delays caused by identity theft.
This six-digit ID prevents anyone else from filing a return in your name. If you want the same level of identity security next tax season, you’ll need to create a new IP PIN.
If you don’t have an ID.me account, you can get an IP PIN by filling out IRS Form 15227 (PDF) and calling or visiting a local IRS office.
You Amended Your Return.
Anyone can forget a form, a big deduction, or choose the wrong filing status. If the change is significant, you should file an updated return. Anyone who files online can also e-file an updated return, but only for the current year.
If you file an updated return, be patient. Processing time for amended returns is up to 16 weeks. Wait to get your initial return’s tax refund before filing an amended return. The IRS frequently corrects minor errors and adjusts your refund. The IRS has an online tool to assist you to assess if you need to alter your return.
Your Return Needs More Work
As stated previously, if the IRS needs more time to analyse your tax return, your refund will be delayed. For example, a CP07 Notice says the IRS has received your tax return and is holding your refund pending further examination.
This notice may arrive if you claim treaty benefits or deductions on Schedule A (PDF).
If the agency finds no concerns, your reimbursement could arrive in six to twelve weeks.
If the IRS finds errors on your return, it will notify you and give you a deadline to correct them.
That implies you’ll get your return months later.
Here are the key dates and deadlines for submitting your taxes.
Here are 10 tax changes that may impact your refund and 13 tax deductions and credits that may increase it.