Tax season is officially here and the IRS began processing tax returns Monday, January 23, 2023. One of the most frequently asked questions during the beginning of tax season is how quickly can I receive my refund? The information gathering, preparing, and IRS processing times already take their toll on efficiency, however there are a few tricks you can do to expedite your refund.
IRS Processing Times
The IRS prioritizes current tax years and processes these returns first. While they are backlogged from the previous year’s delays, and have over a million of past returns still processing, they place in front of these the new year.
E-File vs. Mail In
E-filing gets your return in line immediately, and above others that mail in their return. Status of refunds are available 24 hours after e-filing. This as opposed to mailed in returns is by far more efficient. Mailed in returns have the longest processing times, IRS won’t begin processing until the mail is sorted and uploaded, and always process efiling first. If you want your refund fast, do not mail in your tax return.
Direct Deposit vs. Mailed Refund
Direct Deposit is also a much faster method of receiving your funds. It is fastest and safest, and deposited directly into your bank account. With mail, there are uncertain delivery timeframes, and there is open potential theft. Just like the recent stimulus payments of years passed, direct deposited checks from the government are far faster than mailed payments.
Why you might not get a refund
You expected a refund and didn’t receive one? This is normally due to a tax problem being present. Perhaps some underwithholding, owing a balance, examination, identity theft, dependent dispute, or other issue. If you owed a balance, remember a refund is an overpayment of tax liability, so if you owed them that refund is going towards that debt first before you get it. This can be true for other liabilities as well, such as state income debt, child support, or other offset areas that the federal government prioritizes over you receiving the refund.
If you want help with your tax return or if your refund results in a tax problem, give us a call 800-822-4122 to learn your options.