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Although most taxpayers in the United States should get their refunds within 21 days of submitting their returns, two groups have had extended wait times: those who claim the Child Tax Credit or the Earned Income Tax Credit on their yearly returns.
These filers are encountering delays as a result of a law intended to prevent fraud involving those important tax credits, such as by screening for fraudsters attempting to claim someone else’s return. Individuals who filed early in the tax season — on January 24 — and claimed either of those two tax credits are expected to get refund checks on March 1, according to the IRS.
However, the IRS stressed that the March deadline applies only to taxpayers who meet three additional requirements: filing electronically, choosing direct deposit for their refund, and not being flagged by the IRS as having a fault on their returns.
Even if they filed online, taxpayers claiming one or both of the above tax credits who want physical checks may have to wait several days for the money to arrive in the mail. Even with direct deposit, a refund check can take a day or two to clear and arrive in a personal bank account.
The Child Tax Credit (CTC) is claimed by about 30 million households, and the Earned Income Tax Credit is claimed by roughly 25 million persons.
What Happened to My Refund?
Every year, three out of every four taxpayers receive refund checks, which represent a significant windfall that families rely on to pay bills, save, or pay down debt. Given the large backlog of returns at the IRS and difficulty in processing last year’s tax returns, as well as changes to the tax code that could affect refunds, customers are concerned about the timing and quantity of refunds this year.
The IRS website “Where’s My Refund?” allows taxpayers to monitor the status of their tax returns as well as their refunds. People must enter their Social Security number or Individual Taxpayer Identification Number, as well as their filing status (such as married filing jointly) and the amount of their return, to utilize the program.
People can check on their refunds within 24 hours of filing an electronically filed return or four weeks after mailing a paper return, according to the IRS. When a taxpayer’s return is submitted, their refund is approved, and their refund is sent out, the tool notifies them.
Size of a typical refund
According to the IRS’s most recent filing season figures, almost 36 million filers have submitted their forms as of February 18. According to the IRS, nearly 22 million tax refunds have been distributed thus far.
The IRS received 169 million individual returns in the previous tax year, indicating that the majority of Americans have yet to file their returns. this calendar year
According to a Bankrate survey, over one-third of taxpayers are anxious that their return would be lower this year than in previous years. The CTC, which was enlarged in 2021 and advanced half of the credit through monthly checks last year, is one reason. As a result, families will claim a lower child credit amount on their tax returns, potentially lowering their tax refund.
According to IRS data, the average refund is growing in size as the tax season advances. The average refund was roughly $2,300 on February 11, but it soared to almost $3,600 for the week ending February 18.
The average refund last year was almost $2,800. According to the IRS, the quantity of a typical tax refund might vary considerably from week to week.
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