When Will I Receive My Tax Refund?

In 2024, nearly half of American taxpayers expect a tax return plan to tuck that money away in savings. Meanwhile, about 30% intend to use their refunds to chip away at debt or cover day-to-day expenses.

When do tax returns arrive? How long is the waiting period? And, most crucially, do you qualify to receive one? Keep on reading to find out the answers to these questions and even more.

Who Is Eligible for Tax Refunds?

In the United States, those who meet specific criteria can claim this type of refund. Taxpayers who have overpaid or qualify for certain credits are entitled to file for their refund. Generally, you may be eligible for a refund for several reasons.

1. Overpaid Taxes: This scenario is quite common. If more taxes have been withheld from your paycheck than you owe by year’s end, you are entitled to reclaim the excess as a refund. This situation often occurs when taxpayers fail to adjust their work withholdings to reflect changes in income or marital status.
2. Earned Income Tax Credit (EITC): Low- and moderate-income individuals who qualify for this credit can be issued a refund. The EITC is a refundable credit, which means you can get a repayment even if you don’t owe taxes. According to the IRS, four out of every five employees claim the EITC, which benefits millions of citizens.

3. Child Tax Credit: Child tax credits, which are partially refundable, can lead to a refund if the credit surpasses your total taxes. To meet the requirements, a child must:

   • Hold a US citizenship and be under 17 years old;
   • Have a Social Security number;
   • Be included as a dependent on the taxpayer’s return of taxes.

   Fosterlings or expanded family members who meet certain requirements might also be considered. If you have paid someone to care for your children, partner, or relatives, you can lower your taxes by claiming the Child and Dependent Care deduction.

4. American Opportunity Tax Credit: Part of this credit to invest in education is refundable. If you qualify, you can receive up to $1,000 as a refund even if you don’t owe any taxes. The remaining credit is refundable up to 40% of the leftover amount or $1,000 if you reduce your tax liability to $0 before using all of the $2,500 credit.
5. Other Refundable Credits: Many additional refundable credits can also result in tax refunds. These include the Premium Tax Credit for those who receive health insurance through the Health Insurance Marketplace and the Earned Income Tax Credit for those who make less than a certain income level.
6. Self-Employment Income: Self-employed individuals who make quarterly estimated tax payments may overpay them and be eligible for a refund if their actual tax liability is less than their estimated payments.
7. Tax Deductions and Adjustments: If you qualify for deductions (such as student loan interest or IRA contributions) or income adjustments that reduce your taxable income below the amount of your tax payments, you may be eligible for a refund.

So, when will I receive my tax refund? To avoid asking this question, make sure to file your taxes on time. Filing late and opting for mail instead of e-filing are the most common reasons for refund delays.

What Do You Do After Filing for a Refund?

When will I get my tax refund? There are three ways to find out.

The first is using Where’s My Refund online tool by the IRS. Because it is refreshed every day, you can instantly find out whether the IRS has approved your return. So, when do you receive your tax return? This tool will tell you.

To track the refund, you need to input these data:

• The year of taxation you wish to verify;
• A social security number or tax identification number;
• The precise sum of your refund is displayed on your tax return;
• Status of the taxpayer: head of a family, widow(er), married, and single.

Once you’ve submitted this information, you’ll see if a return is accepted, submitted, or received.

The second option is utilizing the IRS special application. You’ll need all the same information mentioned above. 

Finally, you can just call the IRS at 800-829-1040, to find out how your refund is progressing.

How long do tax returns take? The sooner you file, the quicker you’ll see that refund. It may take up to three weeks for your return to be processed and your refund approved. If there are errors, you’ll get a letter from the IRS. Usually, the process takes 21 days, per the IRS.

What Can Impact Refund Schedules?

How long does it take to get a tax refund? There are several factors influencing refund timings.

1. Filing taxes by mail is way slower than e-filing. It simply takes more time to deliver by mail, resulting in a refund delay.
2. The date of filing does matter. Your refund can be postponed if you have filed your return around the deadline.
3. Your form contains errors. In this case, the IRS sends a letter to gather correct info, which leads to delays.
4. IRS suspects personal data theft or falsification. If the IRS detects some suspicious actions, your return may take longer to process while a problem is resolved.
5. A refund requires additional consideration. The IRS frequently takes longer than expected to analyze a return.

Claiming the EITC or ACTC may delay your refund. By law, the IRS cannot issue refunds for these credits until mid-February.

I received my refund late, can this situation happen again? First, remember to quit the paper file option in the future. It takes more time to process because IRS employees have to type it into the system and correct errors manually. It all results in months of waiting for a return.

Conclusion

Filing a tax return is a crucial annual task for US taxpayers, ensuring they comply with federal laws and accurately report their income. Only by understanding the various forms, deductions, and credits available can you understand how long does it take to receive a tax refund and find out how to reduce your tax liability and maximize your refunds.