Every year, tax season in the United States becomes a crucial event for millions of taxpayers. Typically starting at the end of January, citizens are required to submit their tax returns to the Internal Revenue Service (IRS). As we approach 2024, individuals must declare their income, deductions, and tax credits to determine whether they owe additional taxes or are eligible for a refund. For many, this period is an opportunity to receive a refund that can significantly ease their financial situation.
The tax filing process might seem daunting to some, but the tax season also provides several advantages. Among these benefits are access to free tax filing services and the potential to receive a refund—something everyone appreciates. This aspect is especially significant for many taxpayers, as it often represents one of the largest sums they will receive throughout the year.
Key Dates and Expectations
As 2025 approaches, the anticipation around how quickly these refunds will be processed and delivered becomes a major concern for those eager to file their taxes as soon as possible.
The IRS has officially announced that the tax filing season will kick off on Monday, January 27. On this day, the window opens for taxpayers to begin submitting their 2024 tax returns. Simultaneously, the free filing service, Direct File, will be activated and accessible in 25 states across the U.S. This is a convenient option for those who qualify, as it allows them to file their tax obligations easily and at no cost.
It is estimated that around 140 million Americans will file their tax returns by the April 15 deadline. Many taxpayers eagerly await the outcome of this process, particularly those who are expecting a refund. A significant number of people are optimistic about the potential amounts they might receive.
Advantages of Using the IRS Direct File
There are some great advantages to use the official payment-free IRS direct filing program:
- 1Cost-Free Filing: Direct File is completely free for eligible taxpayers, eliminating any extra financial burden.
- Ease of Use: The service simplifies the filing process, making it accessible even for those unfamiliar with tax return procedures.
- Wide Availability: Available in 25 states, it provides a broad reach for many taxpayers seeking a hassle-free filing experience. The amount of taxes you need to pay will depend on your unique situation.
Understanding IRS Refund Processing Times
One of the main concerns for taxpayers filing their tax returns is how long it will take for the IRS to process their refunds. According to the IRS, most refunds are typically issued within a 21-calendar-day timeframe, provided that the return is filed accurately and completely. For example, if a taxpayer submits their return on January 27, they might expect to receive their refund by February 17 or earlier, assuming there are no complications.
It’s essential to note that faster refunds are often associated with electronic filings, as the digital process is more efficient and quicker than handling paper returns. Therefore, those who file their taxes online and opt for direct deposit could see the funds in their bank accounts in a much shorter period.
Once all the necessary documentation has been submitted, taxpayers can start tracking their tax returns using the IRS’s online tool, “Where’s My Refund?” This platform is accessible to users just 24 hours after filing their electronic returns, providing them with real-time updates on the status of their refund. This service offers a detailed update on the progress of your application, effectively eliminating any uncertainty about when the money will arrive.
Tracking Your Refund: Electronic vs. Paper Filing
On the other hand, if you’ve chosen to file your tax return via paper, there’s a slight delay in processing. The IRS has noted that those who mail in their forms can expect the status of their refund to appear in the “Where’s My Refund?” tool approximately four weeks after submission.
Key Points to Remember:
- Electronic Filing: Access the tool 24 hours post-filing for real-time updates.
- Paper Filing: Expect a four-week wait for status updates in the tool.
- Real-Time Updates: The service provides detailed progress updates, reducing uncertainty.
While most refunds are issued in less than 21 days, several factors can impact how long it takes the IRS to process a tax return. For instance, if there are errors in the submitted information, incorrect claims, or if any part of the return needs further review, this could delay the process. Additionally, opting to receive your funds via a check instead of direct deposit can also affect the delivery time.
Factors Influencing Refund Processing Time
The IRS highlights that some taxpayers might experience delays if their returns include specific tax credits, such as: Earned Income Tax Credit (EITC), and Child Tax Credit (CTC).
These credits require additional verification, and such delays are not uncommon. However, the “Where’s My Refund?” tracking service can provide updated information on the progress of your return.
