Your Refund Is Scheduled to Be Sent—What Happens Next?
Discover the steps that follow once your refund is scheduled, including verification, payment options, and managing offsets.
Tax season can be stressful, but receiving confirmation that your refund is scheduled often brings relief. Understanding the next steps in the process is crucial for managing expectations and planning your finances.
Status Verification
After receiving notification that your tax refund is scheduled, verify its status using the IRS’s “Where’s My Refund?” tool. This tool updates daily and requires your Social Security number, filing status, and exact refund amount. It helps confirm your refund’s progress and identify potential issues.
The IRS typically issues refunds within 21 days of receiving your tax return, provided there are no errors or additional reviews. Delays may occur due to incomplete information, errors, or the need for further verification, especially for claims involving the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC), which are subject to extra scrutiny under the PATH Act.
Payment Methods
The method you choose to receive your refund influences how quickly you get it. Direct deposit is the fastest and most secure option, transferring funds directly into your bank account and reducing the risk of loss or theft.
A paper check is slower due to mailing and processing times but is an alternative for those without a bank account or who prefer a physical payment. Ensure your mailing address is up to date with the IRS to avoid delays.
A prepaid debit card is another option, particularly for those without a bank account. Refunds can be loaded onto these cards and used for purchases, bill payments, or ATM withdrawals. Be mindful of associated fees, such as maintenance or transaction charges, which can reduce the value of your refund.
Debt Offsets
Your refund may be subject to debt offsets under the Treasury Offset Program (TOP). The IRS can redirect your refund to cover outstanding debts, including past-due federal taxes, state taxes, child support arrears, and delinquent student loans. For example, if you owe $2,000 in back child support and your refund is $3,000, the IRS will offset $2,000 and issue the remaining $1,000.
Federal tax refunds can also be used to cover non-tax debts, such as student loans held by the U.S. Department of Education. State tax agencies may submit debts to the TOP as well. Check for outstanding debts beforehand to avoid surprises if your refund is less than expected.
If your refund is offset, the IRS will send a notice detailing the original refund amount, the offset amount, and the agency that received the funds. To dispute an offset, contact the agency that received the payment, not the IRS. Prompt action is essential to resolve disputes efficiently.
Record Keeping
Maintaining accurate records is vital for managing tax matters. Proper documentation supports the information on your tax return and safeguards you in case of an audit. The IRS recommends keeping copies of your filed tax returns and supporting documents for at least three years, which aligns with the statute of limitations for audits. This period extends to six years if you underreport your gross income by more than 25%.
Keep records such as W-2 and 1099 forms, receipts for deductible expenses, mortgage interest statements, and documentation of charitable contributions. These verify claims related to income, deductions, or credits. Business owners should maintain detailed records, including income statements, expense logs, and inventory records, to ensure accurate reporting and compliance with accounting standards.