The Internal Revenue Service (IRS) determines whether you overpaid your taxes and are due a refund by comparing the amount of tax you withheld from your paychecks or paid through estimated tax payments to the amount of tax you actually owe.
If you had too much tax withheld, you’ll get a refund when you file your tax return. You can also claim credits and deductions on your tax return that can further reduce your tax bill or increase your refund. Some common credits and deductions include the Earned Income Tax Credit (EITC), the Child Tax Credit, and the mortgage interest deduction.
When Will the IRS Issue My Tax Refund?
Typically, the IRS expedites the issuance of refunds within 21 days for electronically filed tax returns. However, if you choose the traditional mail filing route, brace yourself for a processing period that may extend up to 6 weeks. To keep tabs on the whereabouts of your refund, the IRS offers a user-friendly tool called “Where’s My Refund?”.
This resource empowers you to stay informed about the current status of your refund. Furthermore, if you find yourself eligible for a refund, the IRS provides the convenience of opting for a direct deposit into your bank account or receiving a traditional mailed check. For any queries or uncertainties related to your tax refund, direct communication with the IRS is encouraged, and you can reach them at 1-800-829-1040.
It’s hard to know how much the refund deposit the IRS will make you this year is, but you can get an idea by knowing that, in 2022, the average payment was $3,099, while in 2023 it was $2,827, a reduction of 8.8%.
How to Use the “Where’s My Refund?” Tool by the IRS
First and foremost, visit the official IRS website at https://www.irs.gov/refunds. Once there, you’ll find a user-friendly interface prompting you to enter specific information.
Start by providing your Social Security Number, your filing status, and the exact amount of your anticipated refund. It’s crucial to input this information accurately to ensure the tool retrieves the most up-to-date and relevant details about your refund status.
After entering the required information, click on the “Submit” button, and the tool will process your request. The system will then provide you with real-time updates on the current status of your refund. You can track whether it’s in the processing stage, has been approved, or if there are any issues that require attention.
Additionally, the tool often provides an estimated date for when you can expect to receive your refund. This valuable insight helps you plan and manage your finances more effectively.
Remember to check the “Where’s My Refund?” tool periodically for the latest updates, especially if you’re eager to receive your refund or if there are any changes in your filing status.