When you file your taxes, getting excited about the idea of getting a big tax refund is easy. But there are a few possibilities if your rebate is overdue and you’re still waiting for it. Knowing why your tax refund could be delayed is the first step toward understanding what’s happening.
In this article, we’ll look at some of the most common reasons your tax refund may be delayed. If you come across a circumstance where your tax refund is being held up, don’t panic! Instead, carefully review the information on this page and, most importantly, work with a tax professional who can help assist you through the correct process.
1. Your tax return was filed on paper.
If you filed your taxes on paper, it’s likely that the IRS is still processing your return and won’t have time to send out your refund until at least mid-April.
Refund delays are most common for people who file their returns by mail or e-file because these methods take longer to process than other forms of filing. If you use direct deposit with your bank account, there should be no delay in receiving it if all information is correct.
2. Careless mistakes
Careless mistakes are common, and they can result in a delay. Common mistakes include typos, missing information, or math errors. If your return is rejected because of something like this, you’ll need to fix it and resubmit it before you get your refund. The IRS offers tools to help with this process—you can use them even if you don’t have a tax professional on hand.
Check everything in your tax return for accuracy and double-check everything else, especially the math and the direct deposit information (either you use an app that will correct your numbers or use a calculator for factual calculations of your number.)
Verify that your Social Security number is entered exactly as it should be, don’t leave any fields blank that you shouldn’t, and include all required supporting evidence or documentation.
Ensure the correct spelling of the necessary information like your legal name, complete address, and other required data in the tax refund form.
3. You recently changed your address.
If you are moving or have recently changed your address, you should contact the IRS to update this information. If you do not, it may be difficult for them to locate your new address, and any tax refunds due will be delayed. The IRS will not send out tax refunds if it does not have an updated address on file for the taxpayer.
For example, if you recently moved outside of California or changed your name or phone number (and didn’t update this information), then this could cause a delay in getting your return back from the IRS. You’ll need to update these details with them before they can process your return correctly.
4. You don’t have a bank account.
It can be hard to receive your refund if you don’t have a bank account. You can’t use prepaid debit cards or even prepaid credit cards. The only way to get your refund quickly is if you have a checking or savings account set up for a direct deposit. However, if this is not possible for you and waiting three weeks is too long, try setting up a direct deposit as soon as possible so next year’s tax season goes smoother!
Direct deposits will be sent within seven business days of filing electronically or four weeks after mailing in paper returns—so make sure that any address changes are reflected on the IRS website before submitting an amended return.
5. Not declaring your entire income.
You may be subject to an audit investigation if you don’t declare all of your income. You could also be penalized for not reporting all of your income or for falsely claiming deductions.
If you’re lucky, the IRS will simply deduct the amount you neglected to report from your refund. It is more likely that the government will add fines and interest to whatever it deducts. You might be the subject of an audit within the following few years. Save yourself the additional problems and be clean about all you made this year.
In addition, if you earn money from a part-time job or through self-employment and haven’t reported it on your tax return documentation, the IRS will automatically send a letter requesting that you provide more information about that income. If you don’t respond within 30 days of getting this notice, the IRS will likely fine you $50 per day until they get a response from you.
6. You’ve had previous tax issues.
If you’ve had tax issues in the past, you may be flagged for additional scrutiny.
These tax disputes may include:
- Federal taxes
- State income taxes
- Child support Payments
- Student loan payments
The IRS can use information from your previous returns to help determine whether or not a return is correct, and if it isn’t, they may ask you to file a form (or amend your return) to get your refund. If this happens, be sure that the tax refund form is filed correctly and on time. You’ll also want to ensure that all of the information on your amended return is accurate; otherwise, it will delay things further.
If you don’t do these things and/or submit an incomplete or inaccurate amended return, then you could end up having additional taxes due or interest charged against your refund because of how long it took for them to process everything properly through their system!
There are still many other possible reasons why your tax refund may be delayed.
If you’re wondering why your tax refund is delayed, there are many reasons.
The IRS may be processing your return to make sure everything is correct. If they find a problem, they will forward you a letter explaining the reason for the delay and how to resolve it. You’ll need to take action by a certain date in order for your refund to go out as planned. If you don’t respond quickly enough, you could miss out on some of that money!
File correctly and be patient.
The IRS is famous for being slow, so you can’t blame them for tax refund delays. If you filed correctly and were patient, your refund should be on its way. In the meantime, try to file electronically using an online version of the tax filing software, or by emailing in your W-2 information—that way, it’s easier for the IRS to process, and you’ll get your money sooner!
If any mistakes or errors on your return require further clarification from yourself (or others), don’t panic! Contact their customer service line at 1-800-829-1040, and they’ll help resolve any issues quickly.
And if all else fails? Well…
As frustrating as delayed tax refunds can be, never fear—licensed tax experts are always available to assist your IRS woes! Licensed tax experts can help with filing correctly and getting faster refunds.
The IRS has a whole host of reasons for why your refund might be delayed. If you think yours is taking too long, contact the IRS and ask them about it. It’s always better to get answers than to lose out on money that rightfully belongs to you.
If you are aware of and carefully follow these tips, you should have no problem getting your tax refund as soon as possible!
