The IRS Warns: Avoid These Common Mistakes to Prevent Delayed Tax Refunds

Published on: February 6, 2025

The IRS Warns Avoid These Common Mistakes to Prevent Delayed Tax Refunds

Are you waiting for your federal income tax refund to arrive in your bank account? You are certainly not alone. In fiscal year 2023, the Internal Revenue Service (IRS) projected that approximately 120.9 million individual taxpayers would receive refunds totaling $461.2 billion. Uncle Sam has a significant amount of money!

Are you curious about when you will receive the federal taxes you overpaid? Naturally, you are. Let’s get into the details. According to IRS.gov, most refunds are processed within 21 days of receiving a federal tax return. However, a number of factors can influence the processing time of your refund.

Here’s What You Need to Know About What Might Speed Up or Delay Your Refund

If you e-file your return and select direct deposit, your tax return is likely to be processed quickly. If you file a paper return and claim the Earned Income Tax Credit (EITC), your individual income tax return may take longer to process.

Staying informed about these variables can help you manage your expectations and reduce anxiety while you wait for your refund.

Anticipating the arrival of your tax refund can sometimes feel like a guessing game. Consider the charts provided by the CPA Practice Advisor to determine when you can expect to receive your refund.

According to their projections, if you submit a complete and accurate e-file return by February 24, 2025, you could receive a direct deposit from the IRS in as little as 10 days, potentially by March 7, 2025. If you prefer a paper refund check, expect it to arrive about a week later, around March 14, 2025.

How to Track Your Tax Refund

The simplest way to determine when your refund will arrive is to check the status with the IRS. Below, you’ll find information on where to look and how to effectively track your return status.

To verify your refund status, make sure you have the following information on hand:

Social Security Number or Individual Taxpayer Identification Number (ITIN)
Filing Status (e.g., single, married, filing jointly)
The Exact Refund Amount as listed on your return

Having these pieces of information ready will facilitate a smoother process when checking your refund status, providing you with a clearer expectation of when your money might arrive.

When managing your tax refunds, one of the first steps is to choose which tax year you want to track. Whether it’s from the previous year or several years ago, ensuring that all of your tax forms are organized and complete is critical.

Accessing Your IRS Online Account

You can track your refund by logging into your IRS online account and entering the requested information. Visit the “Where’s My Refund” page or download the IRS2Go mobile app. Generally, you can check the status of your tax return within 24 hours of e-filing it, or up to four weeks after submitting a paper return.

As you monitor your federal tax return, you may encounter the following status updates, along with their meanings:

Return Received: This update indicates that the IRS has officially received your tax return. Be patient while awaiting further details.
Return Processed: Your return has been processed, and a refund is on the way. The status will change once the funds are dispatched.
Refund Sent: Great news! Your refund has either been deposited directly into your specified account or a paper check is on its way. Remember, once the IRS sends the funds, it might take up to five business days for the transfer to appear in your bank account.

Keep these updates in mind as you track the progress of your tax refund, and ensure you are prepared for each step of the process.

If you need to conduct an additional review or submit an amended return, you’ll find comprehensive instructions alongside your refund status in the IRS refund tracker.

Smart Ways to Use Your Tax Refund

Curious about how to get the most out of your tax refund? Discover 5 wise ways to spend it that will improve your financial situation. Although tax season can be difficult, there are simple ways to avoid a delayed refund. Here are some common reasons experts say may cause a delay in your refund, and how you can address them:

Errors or Missing Information: If you’ve made a mistake or left any details blank, the IRS might request an amended return. Don’t worry, this doesn’t necessarily mean an audit. It simply indicates your return is pending further review.
Specific Tax Credits: Be aware that certain tax credits might take longer to process. By law, the IRS cannot issue refunds for these credits until mid-February. If you claim them and file early, expect your refund by early March.

If you still use snail mail to file your federal tax return, be prepared for potential delays in receiving your refund. If you opt for a paper check rather than direct deposit, the delay may be even longer.

Avoiding Delays in Your Tax Refund

Although it is uncommon, a delayed refund may indicate that you have been the victim of identity theft or tax fraud. To protect yourself, consult the IRS’s identity theft guide, which is tailored for individual taxpayers. This guide will help you understand what steps to take if you suspect fraudulent activity.

Unlike other services, you cannot pay a fee to expedite the processing of your tax return, just as you cannot bypass the lines at Disneyland. However, you can take the following actions to ensure a smoother process:

Carefully review your tax return for any errors.
Submit your return electronically instead of by mail.
Opt for direct deposit to receive your refund faster.

By following these steps, you can significantly reduce any potential delays and receive your refund more swiftly.

Tracking Your State Tax Return

While the IRS tool doesn’t track state tax returns, many states provide their own tracking systems through their Department of Revenue websites. You can find these links through the Federation of Tax Administrators. To track your state tax return, you’ll typically need: