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If you’re eagerly awaiting your federal income tax refund, you’re not alone. In fiscal year 2023, the Internal Revenue Service (IRS) estimated that approximately 120.9 million individual taxpayers were due refunds, totaling an astonishing $461.2 billion. That’s a significant sum held by the government until refunds are processed and distributed.
Curious about when you’ll receive your refund? Here’s everything you need to know.
IRS Tax Refund Processing Time: What to Expect
The IRS states that most refunds are processed within 21 days of receiving a federal tax return. However, several factors can impact the timeline.
If you file electronically and opt for direct deposit, your return is likely to be processed faster. On the other hand, if you submit a paper return or claim the Earned Income Tax Credit (EITC), your refund may take longer to process.
According to estimates from CPA Practice Advisor, a complete and accurate e-filed return submitted by February 24, 2025, could result in a direct deposit refund as soon as March 7, 2025. If you choose to receive a paper check, expect it to arrive about a week later, around March 14, 2025.
How to Check Your Tax Refund Status in Three Simple Steps
The easiest way to track your refund status is through the IRS. Here’s how:
Step 1: Gather Your Refund Information
To check your refund status, you’ll need the following:
- Your Social Security number or Individual Taxpayer Identification Number (ITIN)
- Your filing status (single, married filing jointly, etc.)
- The exact refund amount as listed on your tax return
Additionally, be prepared to specify the tax year for which you are checking the refund status.
Step 2: Use the ‘Where’s My Refund’ Tool or IRS2Go App
Visit the Where’s My Refund tool on the IRS website or use the IRS2Go mobile app. Refund status updates are generally available:
- 24 hours after an e-filed return is received
- Up to four weeks after submitting a paper return
Step 3: Identify Your Tax Return Status
When checking your refund status, you may see one of the following updates:
- Return Received: The IRS has received your return and is processing it.
- Refund Approved: Your refund has been processed and is pending release.
- Refund Sent: The IRS has sent your refund either via direct deposit or by mail. Direct deposits can take up to five business days to appear in your account.
If further review is required or if you need to submit an amended return, the IRS refund tracker will provide additional instructions.
Possible Reasons for a Delayed Refund
While most refunds are processed smoothly, certain factors can cause delays. Here are some common reasons tax professionals cite for delayed refunds and how you can avoid them:
1. Errors or Incomplete Tax Returns
Mistakes, missing information, or discrepancies in your return can lead to delays. If an issue is detected, the IRS may require you to submit an amended return. While this doesn’t necessarily mean you’re being audited, it does mean your refund is pending additional review.
2. Claiming the Earned Income Tax Credit (EITC) or Additional Child Tax Credit
Federal law prevents the IRS from issuing refunds for returns claiming these credits before mid-February. If you claim these credits and file early, expect to receive your refund by early March.
3. Filing a Paper Return
Paper returns take longer to process, and if you request a paper check instead of direct deposit, the wait is even longer. Filing electronically can help speed up the process.
4. Identity Theft or Fraud
In rare cases, a delayed refund may indicate that you have been a victim of identity theft or tax fraud. If you suspect this, consult the IRS’s Identity Theft Guide for Individual Taxpayers to determine the necessary steps to secure your tax return.
Bottom Line
Tax refunds are eagerly anticipated by millions of Americans each year. While most refunds arrive within three weeks, factors like filing method, errors, and tax credit claims can impact the timing. Using the IRS’s online tools and filing electronically with direct deposit can help expedite the process. If your refund is delayed, checking your status regularly and ensuring all information is accurate can help you avoid unnecessary setbacks.
