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How long to wait for a tax refund after filing your return
Generally, you will receive a refund within 21 days if you filed an accurate electronic return with direct deposit for payment, according to the tax authorities. Paper documents and errors may extend the time. You can consult the agency reimbursement portal for status updates.
The timing changes whether you claim the Earned Income Tax Credit – tax relief for low-to-moderate income workers – or the Additional Child Tax Credit. Although the IRS cannot begin issuing these refunds until mid-February, you should receive the funds by February 28 if there are no issues with your return.
Start with a “full audit” of your 2022 financial year
Sheneya Wilson, a chartered accountant and founder of Fola Financial in New York, advised taxpayers to start the tax filing process with a “comprehensive audit of your fiscal year.”
You’ll want to identify all sources of income, major expenses, and life changes, such as marriage, divorce, or the birth of a baby, that may affect your return. While your finances may change from year to year, your 2021 tax return can provide a rough indication of what to expect, she said.
It’s better “to do it right than to get it out quickly”
While you may be eager for a refund, the IRS says to wait until you have all the necessary information. “Filing an accurate tax return can help taxpayers avoid delays or later notices from the IRS,” said the the agency said in a recent press release.
The IRS said this is “especially important” if you receive a Form 1099 for unemployment income, capital gains, or dividends, pensions, or retirement plan distributions.
Getting it right is more important than getting it out quickly.
Marianne Collado
CEO of Tobias Financial Advisors
“Getting it right is more important than doing it fast,” said certified financial planner Marianela Collado, CEO of Tobias Financial Advisors in Plantation, Florida. She is also a chartered accountant.
Businesses prepare annual information returns, such as Form 1099s, with a copy for the IRS and the taxpayer. If you skip any of these forms, the IRS system automatically flags your return and sends you a notice, which can take time to resolve.
Of course, you will want to double-check the details entered from your tax forms. “I always say haste is wasteful,” Collado said.
Always check your tax return
Another common reason for processing delays is typos in tax returns, Wilson said.
Whether you file yourself or work with a professional, it’s essential to review your tax return, including all of your personal information – such as your name, date of birth, social security number, address and your bank details for direct deposit – to make sure everything is correct, she says.