Can You Get Your Refund Before the Deposit Date?
Can your tax refund arrive early? Understand how deposit dates are determined, track your refund, and navigate any timing issues.
Tax refunds are a significant financial event for many taxpayers. A common point of interest revolves around the “deposit date” provided by the Internal Revenue Service (IRS), and whether taxpayers can expect their refund to arrive before this specified date.
How Refund Deposit Dates Are Determined
The Internal Revenue Service (IRS) processes tax returns and, upon approval, issues a specific deposit date for refunds. This date reflects when the IRS sends the funds to a taxpayer’s financial institution, not when the money becomes available in their account. It can take one to five business days for financial institutions to process the direct deposit.
The general timeline for receiving a refund varies based on the filing method. For returns filed electronically with direct deposit, the IRS issues refunds within 21 calendar days. Paper-filed returns, however, take considerably longer, requiring six to eight weeks for processing. The deposit date provided by the IRS is an estimate based on their current processing times and the details of the submitted return.
Factors Affecting Refund Timing
Several variables can influence how quickly a tax refund is processed and ultimately deposited. The method of filing impacts the timeline, with electronically filed returns processed faster than those submitted on paper. Similarly, opting for direct deposit is quicker than receiving a refund via a mailed check.
The types of credits claimed on a return can also affect the timing. Refunds including the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) are subject to a mandatory hold under the Protecting Americans from Tax Hikes (PATH) Act. This legislation requires the IRS to hold refunds claiming these credits until mid-February to prevent fraud.
Errors on a tax return, such as simple math mistakes or incomplete information, can trigger a manual review, leading to delays. Concerns regarding identity theft or potential fraud can also prolong the processing time as the IRS investigates. Furthermore, filing an amended return can extend the processing period, taking 16 weeks or more.
Tracking Your Refund Status
Taxpayers can monitor the progress of their refund using the official “Where’s My Refund?” tool. This online resource offers updates on the refund status, from receipt of the return to approval and eventual deposit. To access information through the tool, taxpayers need their Social Security number or Individual Taxpayer Identification Number, their filing status, and the exact refund amount shown on their filed tax return.
Upon entering the required information, the tool will display one of several status messages, such as “Return Received,” “Refund Approved,” or “Refund Sent.” “Return Received” indicates the IRS has received the return and is processing it, while “Refund Approved” means the IRS has processed the return and confirmed the refund amount. “Refund Sent” signifies that the IRS has dispatched the refund to the financial institution.
Addressing Refund Delays
If a tax refund has not arrived by the expected deposit date, taxpayers should first re-check the “Where’s My Refund?” tool for any updated information. This tool often provides specific messages if there are delays or actions required from the taxpayer. Wait a specific period before contacting the IRS directly.
For most electronically filed returns, it is recommended to wait at least 21 days from the date of e-filing before inquiring about a delayed refund. For paper-filed returns, the waiting period extends to six weeks from the mailing date. If the “Where’s My Refund?” tool instructs the taxpayer to contact the IRS, or if these waiting periods have passed without an update, taxpayers can call the IRS directly. If the tool indicates the refund was sent but has not appeared in a bank account, contacting the financial institution is the next appropriate step.