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How soon you can expect a tax refund after filing your return
You’ll typically get a refund within 21 days if you filed an accurate electronic return with direct deposit for the payment, according to the IRS. Paper submissions and mistakes can extend the timeline. You can check the agency reimbursement portal for status updates.
The schedule changes if you claim the earned income tax credit, a tax break for low- and moderate-income workers, or the additional child tax credit. While the IRS can’t start issuing these refunds before mid-February, you should receive the funds by February 28 if there are no issues with your return.
Start with a ‘full audit’ of your fiscal year 2022
Sheneya Wilson, a certified public accountant and founder of Fola Financial in New York, advised taxpayers to start the tax filing process with a “complete audit of your financial year.”
You’ll want to identify all sources of income, major expenses, and life changes, such as marriage, divorce, or having a baby, that may affect your filing. While your finances may change from year to year, your 2021 tax return can provide a rough guide to what to expect, she said.
It’s better to hit it than to get it out quickly
While you may be anxious for a refund, the IRS says to wait until you have all the necessary information. “Filing an accurate tax return can help taxpayers avoid delays or later notices from the IRS,” the agency said in a recent news release.
The IRS said this is “especially important” if you’re receiving a Form 1099 for unemployment income, capital gains, or dividends, pensions, or retirement plan distributions.
“It’s more important to do it right than to do it fast,” said certified financial planner Marianela Collado, chief executive of Tobias Financial Advisors in Plantation, Florida. She is also a certified public accountant.
Businesses prepare information returns, such as 1099s, every year, with a copy for the IRS and the taxpayer. If you skip any of these forms, the IRS system automatically flags your return and sends you a notice, which may take time to resolve.
Of course, you’ll want to double-check the details entered on your tax forms. “I always say that haste makes waste,” Collado said.
Always double check your tax return
Typos on tax returns are another common reason for processing delays, Wilson said.
Whether you file your taxes on your own or work with a professional, it’s critical to review your tax return, including all of your personal information, such as your name, date of birth, Social Security number, address, and bank details for deposit direct, to make sure everything is accurate, she said.