As tax season begins Monday, a recent survey reveals that over a third of taxpayers, including 50% of millennials, rely on refunds to cover essential expenses.
The survey of 1,000 U.S. adults by Qualtrics, commissioned by Intuit Credit Karma, found that nearly half of those relying on refunds cite the rising cost of living, including housing and groceries, as the main reason.
If you're counting on a refund or just want to know when it will arrive, here's what you need to know, according to USA Today.
When To Expect Tax Refund
The timing of your refund depends on how you file your taxes and how you choose to receive it. If you file electronically and your return is accurate, the IRS typically issues refunds within three weeks. Choosing direct deposit can expedite the process even further.
If you file a paper return, expect your refund within six to eight weeks, assuming everything is correct. Amendments or returns that require extra review may take longer.
Tracking Your Refund
Once you file, you can track your refund through the IRS website. To do so, you'll need your:
- Social Security number or individual taxpayer ID number (ITIN)
- Filing status
- Exact refund amount
The IRS updates refund statuses once daily, overnight. If your refund is sent via direct deposit, it may take up to five days to show in your account. Paper checks can take several weeks to arrive.
If the IRS needs more information or your return requires additional review, expect a letter from them, which could delay your refund.
How Refunds Work
Refunds are issued when you've paid more taxes than you owe. You may also receive a refund if you qualify for a refundable credit, even if you didn't pay taxes. You have three years to claim your refund.
How To Check Refund
If you e-file, you can check your refund status after about 48 hours with Where's My Refund? It also provides information on refunds for the current year and for the last two years.
For amended returns, you'll need to wait up to three weeks for it to show in the system and up to 16 weeks for processing. Visit Where's My Amended Return? to check on amended updates.
Refund Options
You can choose how you want to receive your refund:
Direct deposit: This is the fastest option, and you can split it between up to three accounts.
Paper check: Mailed to the address on your return (notify the IRS if your address changes).
Prepaid debit card: Check with your provider to ensure compatibility.
Mobile payment apps: Some apps accept direct deposits.
IRA accounts: Refunds can be deposited into Traditional, Roth, or SEP IRAs.
Troubleshooting Refund Issues
If your refund is different than expected, it could be due to corrections made to your return or offsets for debts. Visit Where's My Refund? for details.
If it's missing or damaged, you can request a replacement check.
If you received a paper check instead of direct deposit, it might be due to issues with the account name or your financial institution rejecting the deposit.
