Many Americans are wondering why they have not yet received their tax refunds. In the past, the average American got their refund back within 21 days of the IRS receiving their tax return. Still, this year the number has ballooned to over 40 days as an IRS backlog has caused many people to wait months before they see any cash in their bank accounts.
Your tax return can be delayed for several reasons: Incomplete filing status – not enough information. Here are some other things you need to know about why refunds are taking longer than usual and how you can get your money faster when it does arrive in your account.
What Changed With The New Tax Law?
The Tax Cuts and Jobs Act, signed into law in 2017, changed several tax rules that impact individual and business taxes—including taxes on companies’ income earned abroad and certain deductions for individuals.
Those changes go into effect with your 2018 taxes next year, which means if you file early, you’ll be dealing with new rules without any actual knowledge of how they might apply to your specific situation.
For example, some people who itemize their deductions could see a higher tax bill because of state and local tax (SALT) deduction limits under the new law. Because each taxpayer’s circumstances differ, it’s difficult to say precisely how much this will affect them.
So while it may take longer for some people to get their refund under these circumstances, it doesn’t mean everyone will experience a delay or won’t get their money.
How Long Should Your Refund Take To Arrive?
You’ve probably heard that some taxpayers have already received their tax refund checks, but why is it taking so long if you’re still waiting for yours? Unfortunately, there isn’t just one reason.
While certain factors can undoubtedly delay your refund, such as filing your taxes electronically or claiming a hefty deduction for charitable contributions, others aren’t as clear-cut—but that doesn’t mean they should be ignored.
You may be affected by many of these reasons and experience a delayed refund.
What If You Haven’t Received Your Refund Yet?
Here’s what you can do about it; according to an IRS spokesperson, there could be a delay if you filed electronically and requested a refund by direct deposit and haven’t received it yet. The IRS is working through a large volume of returns right now, so some people may have to wait longer than usual for their refund.
If that’s your situation, here are three things you can do: If you’ve already waited more than 21 days from when you mailed your return or more than six weeks from when you e-filed it, check out Form 4852.
This form asks whether there was an error on your return (e.g., calculation mistake) or whether there was an issue with processing (e.g., needed additional information). You should receive a response within 30 days after filing Form 4852—and hopefully, get closer to finding out why your refund hasn’t arrived yet.
Where’s My Refund Status Tool?
Most of us have gotten used to checking our Where’s my refund? Tool to see if our returns have been processed—but if you’re one of those taxpayers whose return takes an incredibly long time, it might be best to wait a bit longer before checking in.
The IRS has released data showing that processing times for some returns (those claiming itemized deductions) have increased by 50 percent compared with last year. The agency says that changes to tax laws and more complicated filings may be responsible for some of these delays.
However, taxpayers can also blame their procrastination. Nearly half of all filers waited until mid-April to file their taxes—so if you haven’t yet filed your return, don’t expect your refund any time soon. Check back later in May; if your refund hasn’t arrived, consider calling or visiting your local IRS office.
Can I Pay My Taxes Faster With An Additional Payment Or A Cashier’s Check?
No, only an original check or money order should be sent for your income tax refund.
If you send anything else (cashier’s check, additional payment, etc.), it will be returned to you by your bank or held until the IRS can clear it through their process.
For years I have studied American finance regulations. All the information in this blog is sourced from official or contrasted sources from reliable sites.
Salesforce Certified SALES & SERVICE Cloud Consultant in February 2020, Salesforce Certified Administrator (ADM-201), and Master degree in “Business Analytics & Big Data Strategy” with more than 13 years of experience in IT consulting.