My Tax Return Is Being Processed: What Does This Mean?
Demystify your "tax return being processed" status. Gain clarity on its meaning and learn how to navigate the IRS review process.
“My tax return is being processed” is a common status update that indicates the Internal Revenue Service (IRS) has received your tax filing. This status means the IRS is actively reviewing your return for accuracy and compliance. It is a normal and expected part of the tax refund process.
Stages of Tax Return Processing
A tax return moves through several stages. The initial stage, “Return Received,” confirms the IRS has your tax documents. Your return then enters the “processing” phase, where the IRS validates information, verifies calculations, and confirms claimed credits or deductions.
For electronically filed returns, the IRS issues refunds within 21 days once accepted. Paper-filed returns require longer processing, often four weeks or more, due to manual handling. The final stages are “Refund Approved,” indicating the refund amount is finalized, and “Refund Sent.”
Reasons for Processing Delays
Several factors can extend processing time. Errors include mathematical mistakes, incomplete information, or incorrect Social Security numbers for the taxpayer or dependents. Discrepancies between reported income and IRS records (W-2s or 1099s) can also trigger a delay.
Claims for certain tax credits, like the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC), can extend processing due to fraud prevention requirements. Identity theft concerns or suspicions of fraud can prompt the IRS to freeze a refund for further review.
How to Track Your Refund Status
The IRS provides a dedicated online tool called “Where’s My Refund?” to monitor your refund’s progress. This is the most efficient way to track your refund. You will need your Social Security number or Individual Taxpayer Identification Number, filing status, and the exact refund amount to access the information.
The tool displays “Return Received,” “Refund Approved,” or “Refund Sent.” Information updates once daily, usually overnight, so frequent checking within the same day is unnecessary. For e-filed returns, refund information is available within 24 hours of acceptance.
Addressing Processing Issues
If your tax return processing extends significantly beyond typical timeframes, or if you receive correspondence from the IRS, specific actions are advisable. Contact the IRS only if 21 days have passed since e-filing, six weeks since mailing a paper return, or if “Where’s My Refund?” directs you. Have your tax return information available when contacting them.
Receiving an IRS notice or letter may indicate a need for additional information, identity verification, or an adjustment to your return. It is important to read these notices carefully and respond by any stated deadline to avoid further complications or penalties. Do not file a second, identical return, as this can cause delays.