The Main Reasons Your Tax Refund Could Be Delayed
A tax refund can make a big difference in your wallet. It can cover bills, help you save for a vacation or help you boost your credit score. But you can’t really predict how long it will take the IRS to process your return or issue your refund. Here are some of the main reasons your refund could be delayed:
1. Early Filing
There are a variety of reasons why your tax refund could be delayed. These can include making a mistake on your return, entering the wrong bank account information for direct deposit, or filing early. Some people even choose to file their taxes earlier in the year, as this can lead to a bigger tax refund. However, that isn’t always the case. In fact, if you have any type of error on your return, you’re likely to be assessed a penalty. Fortunately, it’s possible to avoid these penalties by ensuring your tax returns are filed correctly with the help of a professional.
2. Filing A Paper Return
A tax refund is a cash payment to a taxpayer who has overpaid their taxes. It can be a good financial boost, but it can also cause stress when it takes longer to receive than expected. Generally, tax refunds take less than 21 days to arrive when filed electronically. However, it can take about six weeks for a refund to appear in the mail. You may be able to speed up the process by filing your return electronically and choosing direct deposit. This will ensure your refund is deposited directly into your bank account.
3. Mistakes On Your Return
Many people file their tax returns with the best of intentions. They want to avoid any delays in getting their refunds or having the IRS accept their federal returns. Unfortunately, mistakes are a common problem during the tax filing season. Some of these errors are simple to fix, while others can cost you big money. A math error, for example, can lead to you owing more money than you actually do. It also can delay your refund, so it’s important to check all of the numbers on your return before you submit it.
4. Receiving A Check In The Mail
If you receive a check in the mail, it’s possible that your refund may be delayed. This is because criminals will take advantage of the time period between when a customer receives their check and when it gets processed by their bank, said Lisa Feddis, director of fraud and abuse at the Financial Services Roundtable, a nonprofit trade association that represents banking industry professionals. Getting your tax refund through direct deposit is the fastest and safest way to receive it. Simply select this method when filing your taxes. Enter your routing and account numbers in your tax software or tell your preparer that you want to receive it this way.
5. Amended Returns
You may file an amended return if there are issues with your filing status, income, deductions or credits. Examples include claiming more dependents, removing dependents that were previously claimed, or missing an important tax credit or above-the-line deduction. You don’t need to file an amended return if there is a simple math or clerical error, like forgetting to attach a form or schedule. The IRS can usually fix these types of errors on its own. If you are claiming a loss or unused credit carryback, you must file an amended return along with your original return. However, the process will take up to 16 weeks, so be patient!
At Kedean’s Generation, we pride ourselves on our reputation for customer service and our extensive knowledge on taxes. We understand that it can be difficult to know exactly what to do when you’re unsure of how to go about getting your refund. Whether you’re looking for an expert to file for you, want to understand how to calculate your estimated tax liability or need assistance with tax planning, we have the solution for you. Don’t wait, schedule a consultation with our team of professional tax experts today!