After completing the arduous task of filing your taxes, the relief you feel may not last for long. The question, "How long does it take to get a tax refund?" will be on your mind. However, you may be frustrated by the Internal Revenue Service's (IRS) processing timeframes for your federal income tax refund. You should factor the time to get your federal tax refund into your annual budget planning. A financial advisor can assist you in putting together a financial plan that goes beyond simple tax preparation.
Refunding Taxes Process
The Internal Revenue Service has a strict protocol for processing tax returns and giving refunds. Accepting your return is the first stage and typically occurs within 24 to 48 hours.
They are verifying that your return's personal data is consistent with what they have on file for you. If the Internal Revenue Service finds no errors in your return, they will notify you of their acceptance. At this point, the timer on your return will begin counting down.
How Long Will It Be Until I Get My Tax Refund?
How you file your tax return will significantly impact how quickly you receive your refund. Direct deposit of your refund after filing your return electronically is the quickest method. Most people who use this method to submit their taxes for the year 2021 in the year 2022 will get their refunds within 21 days. That implies the money will be in your account no later than three weeks after the IRS accepts your return. Then, it could be a few more days before the money is in your bank account.
It will take longer to process your return if you file it on paper or request a paper check for your refund. Paper returns that require a paper check to be issued take at least two months to process.
Other Variables That May Affect A Tax Refund
Errors, incomplete returns, or fraud are all potential stumbling blocks that could lengthen the time it takes to issue your tax refund.
Earned income tax credits (EITC) and extra child tax credits (ACTC) are subject to special conditions that force the IRS to delay refunds until February 28. If the Internal Revenue Service decides that your tax return requires additional investigation, the time it takes to issue your refund may increase.
The IRS warns that receiving a refund for a return that contains errors or requires special handling may take more than four months. Some tax returns require further attention because they have an inaccurate amount claimed for the EITC or the ACTC or because the Recovery Rebate Credit was claimed in error when the IRS has reason to suspect identity theft or fraud with a return, processing time increases.
If the IRS approaches you via letter to request information or verify a return, respond as soon as possible. Your refund time will rise if you take too long to react. Due to processing delays caused by the pandemic, you may have to wait longer than 20 weeks to receive a refund if you filed an updated tax return.
Ways To Speed Up My Refund?
Here are three things you can do to get your tax refund quicker:
1. Maintain Order In Your Tax Documents
You can file your tax return faster and with fewer potential errors if you take the time to get everything in order. Keep all your tax records in one place, including W-2 and 1099 forms and any evidence supporting your itemized deductions.
2. Tax Preparation Software
Tax preparation software can substantially simplify and expedite The tax filing procedure. All the necessary IRS forms and schedules are included in these packages, and they also assist you in complying with all the latest regulations and claiming every deduction you are entitled to.
3. File Your Return Electronically
You can get your refund much quicker if you file your return electronically and select direct deposit as your refund method rather than waiting for a paper check to arrive. With direct deposit and electronic filing, you may have your refund in as little as two weeks after the IRS accepts your return.
To Sum Up
When and how you file your tax return will determine how long it takes to receive your refund. E-filing your tax return and choosing direct deposit to collect your refund is the fastest way to get your money back. The IRS has promised that most people who file their taxes electronically in 2021 (and opt for direct deposit of refunds) will have their money back within 21 days.
Paper returns and refund checks might add weeks or months to the processing time. The Internal Revenue Service takes longer to process returns at the start and finish of tax season. Most people submit their tax returns around those times.
