The tax deadline is close, and many of you must be excited to receive your tax refunds. As we all know that the IRS processes most of the refunds within 21 days of filing, but there are always some exceptions to the case.
What we mean to say is that don’t panic if any of your acquaintances received their refund on time but you didn’t. Tax refunds, just like every tax return, are unique and different from others. Several factors affect the timelines of receiving tax refunds from the IRS.
In this blog, we will throw light on those few reasons which may delay your refund. Knowing these few things can help you understand the cause behind your delay, and stay calm if other taxpayers receive their refunds and you don’t.
- There is a significant emphasis on strengthening security for taxpayers. The rise in the number of identity theft and refund fraud cases pushes the IRS to put extra focus on returns to be sure of their integrity.
- Tax returns with errors can take a longer time for processing. Therefore, the best option is to file them electronically. The e-file software helps taxpayers with all the steps of filing and does all the calculations itself. You shall ensure to input the right information, filing electronically, or not.
- Incomplete tax returns become another reason for the delay in receiving tax refunds. The IRS takes longer to process incomplete forms and gets in touch with the taxpayer through the mail for getting the additional information to process the return. Filing electronically reduces the ‘to and fro’, helps in ensuring that the tax return is complete, and has all supporting documents required for processing the returns.
- If you are planning to claim earned income tax credit or additional child tax credit, then the IRS by law cannot issue the refund to you before mid-February. The law requires the IRS to hold the whole amount of refund, including even the portion of the refund not associated with EITC or ACTC.
- Another reason for the delay could be from the bank’s side. Many times banks and financial institutions take time in processing the amount in the taxpayer’s account. This period can be further extended if your refund is supposed to be received through the mail.
The Bottom Line
The blog covers most of the reasons which might cause a delay in your tax refunds. It is prudent that you start preparing for tax return beforehand itself so that the last-minute rush doesn’t become a hiccup in your tax filing experience. Ensuring the returns are complete and error-free will help you receive your tax refunds within 21 days of filing.
To understand all about tax refunds, your eligibility, and related matters. You can contact our MyTaxFiler experts and book a session to explore more!