Do You Get Your State and Federal Refund at the Same Time?
Learn whether federal and state tax refunds arrive at the same time. Understand the distinct factors influencing their processing and delivery.
Tax refunds are a reimbursement for overpaid taxes, whether withheld or paid in excess of one’s actual tax liability. Understanding the distinct processes for federal and state refunds, and factors influencing their arrival, helps manage expectations.
Federal Tax Refund Processing
The Internal Revenue Service (IRS) is responsible for processing federal tax returns and issuing refunds. For most electronically filed returns with direct deposit, the IRS typically issues refunds within 21 days of receiving the return. However, this timeline is an estimate and not a guarantee.
Refunds for taxpayers claiming the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) are legally held until mid-February. This delay helps the IRS prevent fraud related to these credits. Identity verification, errors on the return, or discrepancies in reported income can also cause significant processing delays.
State Tax Refund Processing
State tax refund processing operates independently from the federal system, with each state having its own procedures and timelines. Consequently, the speed at which a state refund is issued can vary considerably, ranging from a few days to several weeks. Some states may process refunds faster than the IRS, while others might take longer.
Factors affecting state refund timing often include state-specific tax credits or deductions that require additional review. State tax agencies also implement their own fraud prevention measures, which may involve additional security checks or identity verification steps, potentially extending the processing period. Errors or missing information found on a state-specific return can also delay its processing, similar to federal returns.
Common Factors Affecting Refund Timelines
Several common factors can influence the processing speed of both federal and state tax refunds. The method of filing is a primary determinant; e-filing generally results in faster refunds compared to mailing a paper return. Similarly, opting for direct deposit is typically quicker than receiving a paper check.
Accuracy of the tax return is important, as errors, missing information, or inconsistencies can trigger a manual review and significantly delay a refund. This includes incorrect Social Security numbers, filing status discrepancies, or inaccurate bank account information. Returns flagged for an in-depth review or audit by federal or state authorities will extend processing time. General security measures to combat fraud can also introduce delays.
Checking Your Refund Status
Taxpayers can track the status of their refunds once their returns have been filed. For federal refunds, the IRS provides an online tool called “Where’s My Refund?”. To use this tool, individuals need to provide their Social Security number, filing status, and the exact refund amount shown on their tax return.
Similarly, each state’s Department of Revenue or Tax Department typically offers its own online “Where’s My Refund?” service. Taxpayers generally need similar identifying information, such as their Social Security number and exact refund amount, to check their state refund status. These online tools are usually updated daily, providing the most current information available without needing to contact tax authorities directly.