Let’s begin with the fundamental issue that has brought us together, you with questions and me with answers: a tax refund is what the government pays you back when you pay too much in taxes. The IRS anticipated an average of $3,221, based on data collected through March, which is comparable to that of 2024.
The intriguing part is that individuals who choose for direct deposit usually receive an additional $60. According to experts, there is less room for error in the procedure. In February, the average was $2,169, but it increased when statements with credits like the EITC and ACTC began to arrive.
These are processed after mid-February, so be patient; if you claimed these benefits, your check may be larger. Yes, thoroughly review the numbers. If you make a mistake with your SSN or bank account information, you will lose your fast money.
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Errors that could withhold your tax refund
There are a number of fairly typical mistakes that American taxpayers make, and we bring them here so that you can learn from the mistakes of others and avoid falling into the same trap.
Here is the black list of what you shouldn’t do.
- Putting your SSN or name incorrectly: It appears obvious, but it is the most prevalent mistake. The IRS cannot guess your identity.
- Forget credits and deductions: Did you pay off your college loans? Have you ever donated to a cause? Claim it! The EITC, for example, provides a lifeline to low-income families.
- Wrong direct deposit: With one mistaken account number, your money could wind up in limbo (or in the hands of someone else).
Keep in mind that if you owe back taxes, support, or student debts, the IRS may deduct your refund. They send you a notification, but it’s best to be safe.
What happens if I file my tax return late?
Filing after April 15 results in a 5% monthly fine on what you owe, up to 25%. If you expected a refund, there is no penalty. But why take the risk? It’s better to use tools like Where’s My Refund? to track your money and solve problems on time.
If you file on paper, the IRS can take up to six weeks to process your return. On the other hand, with direct deposit and e-filing, many people receive their money in less than 21 days. Oh, and if you’re due for an audit (hopefully not!), having everything digitized makes things easier.
If your refund appears low, compare it to previous years. Changes in your tax situation (for example, a rise in income) can explain the discrepancy. And if something smells foul, notify the IRS right away.
