As millions of people begin
filing their tax returns, the Internal Revenue Service reminds
taxpayers about some basic tips to keep in mind about refunds.
During the early parts of
the tax season, taxpayers are anxious to get details about their
refunds. In some social media, this can lead to misunderstandings and
speculation about refunds. The IRS offers these tips to keep in mind.
Myth 1: All Refunds Are Delayed
While the IRS issues more
than 90 percent of federal tax refunds in less than 21 days, some
refunds take longer. Recent legislation requires the IRS to hold refunds
for tax returns claiming the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC)
until mid-February. Other returns may require additional review for a
variety of reasons and take longer. For example, the IRS, along with its
partners in the states and the nation’s tax industry, continue to
strengthen security reviews to help protect against identity theft and
refund fraud. The IRS encourages taxpayers to file as they normally
would.
Myth 2: Calling the IRS or My Tax Professional Will Provide a Better Refund Date
Many people mistakenly
think that talking to the IRS or calling their tax professional is the
best way to find out when they will get their refund. In reality, the
best way to check the status of a refund is online through the “Where’s My Refund?” tool at IRS.gov or via the IRS2Go mobile app.
Taxpayers eager to know
when their refund will be arriving should use the "Where's My Refund?"
tool rather than calling and waiting on hold or ordering a tax
transcript. The IRS updates the status of refunds once a day, usually
overnight, so checking more than once a day will not produce new
information. “Where’s My Refund?” has the same information available to
IRS telephone assistors so there is no need to call unless requested to
do so by the refund tool.
Myth 3: Ordering a Tax Transcript a “Secret Way” to Get a Refund Date
Ordering a tax transcript
will not help taxpayers find out when they will get their refund. The
IRS notes that the information on a transcript does not necessarily
reflect the amount or timing of a refund. While taxpayers can use a
transcript to validate past income and tax filing status for mortgage,
student and small business loan applications and to help with tax
preparation, they should use “Where’s My Refund?” to check the status of
their refund.
Myth 4: “Where’s My Refund?” Must be Wrong Because There’s No Deposit Date Yet
The IRS will update “Where's My Refund?” on both IRS.gov and the IRS2Go mobile app with
projected deposit dates for early EITC and ACTC refund filers a few
days after Feb. 15. Taxpayers claiming EITC or ACTC will not see a
refund date on “Where's My Refund?” or through their software package
until then. The IRS, tax preparers and tax software will not have
additional information on refund dates.
The IRS cautions taxpayers
that these refunds likely will not start arriving in bank accounts or on
debit cards until the week of Feb. 27 – if there are no processing
issues with the tax return and the taxpayer chose direct deposit. This
additional period is due to several factors, including banking and
financial systems needing time to process deposits. Taxpayers who have
filed early in the filing season, but are claiming EITC or ACTC, should
not expect their refund until the week of Feb. 27. The IRS reminds
taxpayers that President’s Day weekend may impact when they get their
refund since many financial institutions do not process payments on
weekends or holidays.
Myth 5: Delayed Refunds, those Claiming EITC and/or ACTC, will be Delivered on Feb. 15
By law, the IRS cannot issue refunds before Feb. 15 for any tax return claiming the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC).
The IRS must hold the entire refund, not just the part related to the
EITC or ACTC. The IRS will begin to release these refunds starting Feb.
15.
These refunds likely won’t
arrive in bank accounts or on debit cards until the week of Feb. 27.
This is true as long as there is no additional review of the tax return
required and the taxpayer chose direct deposit. Banking and financial
systems need time to process deposits, which can take several days.
See the What to Expect for Refunds in 2017 page and the Refunds FAQs page for more information.
Taxpayers should keep a
copy of their tax return. Beginning in 2017, taxpayers using a software
product for the first time may need their Adjusted Gross Income (AGI)
amount from their prior-year tax return to verify their identity.
Taxpayers can learn more about how to verify their identity and
electronically sign tax returns at Validating Your Electronically Filed Tax Return.
IRS YouTube Videos:
- Direct Deposit for Your Tax Refund – English | Spanish | ASL
- Claiming EITC or ACTC? Your Refund May be Delayed – English | Spanish | ASL
- When Will I Get My Refund? – English | Spanish | ASL
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