Hear that? It's the sound of millions of taxpayers cheering across the country. By law, the Internal Revenue Service (IRS) must wait until a certain date to begin issuing refunds to taxpayers who claimed the earned-income tax credit (EITC) or the additional child tax credit (ACTC). For this year, that date is today, February 15, 2018.
But don't get too excited: Today is the day that the IRS will begin to release affected tax refunds. That does not mean that affected refunds will be available today. In addition to normal processing times for banks, factoring in weekends and the President’s Day holiday, the IRS expects the earliest EITC/ACTC-related refunds to be available in taxpayer bank accounts or on debit cards starting on February 27, 2018. That's assuming that affected taxpayers opt for direct deposit and that there are no other issues with the tax return.
Taxpayers who do not claim the EITC or the ACTC are not affected by the new law. The IRS still expects to issue more than 90% of federal tax refunds in less than 21 days; some tax returns, however, may require additional review and may take longer.
(For more information about the filing season and tax refunds, click here.)
If you want to get your refund as fast as possible, the IRS recommends that you e-file your tax return and use direct deposit (be sure to double-check those account numbers before you send your return). If you file by paper, it will take longer. According to the IRS, eight out of 10 taxpayers get their refunds by using direct deposit.
Follows are my best guesses for expected returns based on filing dates and information from the IRS. I can't stress enough that these are simply educated guesses. I like math and charts as much as the next girl, but there are a number of factors that could affect your tax refund (keep reading).
* No matter when you filed your tax return, if you claimed the EITC or the ACTC, don't forget to take into consideration that February 15 hold date.
My numbers are based on an expected IRS receipt date beginning on the open of tax season, January 29, 2018, through the close of tax season on April 17, 2018. To keep the chart manageable, I've assumed the IRS received your e-filed tax return on the first business day of the week; that's usually a Monday, but if there's a holiday (like President's Day), I've skipped ahead until Tuesday. The same logic holds true for issuing refunds. In reality, the IRS issues tax refunds throughout the week, so the date could move forward or backward depending on the day your return was received. Other sites may have different numbers but remember they're just guessing, too: The IRS no longer makes their tax refund processing chart public.
If you're looking for more information on your refund, the IRS encourages you to use the "Where's My Refund?" tool. Have your Social security number or ITIN, filing status and exact refund amount handy. Refund updates should appear 24 hours after e-filing or 4 weeks after you mailed your paper return. "Where’s My Refund?" will give you a projected refund date, as well as when your return has been received and processed. The IRS updates the site once per day, usually overnight, so there's no need to check more than once during the day.
Even if you request direct deposit, you may still receive a paper check. Since 2014, the IRS has limited the number of refunds that can be directly deposited into a single financial or bank account or applied to a prepaid debit card to three. Taxpayers who exceed the limit will instead receive a paper check. Additionally, the IRS won’t issue a refund by direct deposit into just any account: it can only be deposited into an account in your name, your spouse’s name or both of your names if married with a joint account. If there's an issue with the account, the IRS will send a paper check.
If it's been more than 21 days since you e-filed your return, or 6 weeks since you filed your paper return, and you still haven't received your refund (and you did not claim the EITC or ACTC), there may be a problem. There might be an error on your return, it may be incomplete or require further review, or you may have been impacted by identity theft or tax fraud. If the IRS needs more info, they will contact you by mail. Otherwise, you can try calling the IRS. The days leading up to Presidents Day weekend are the busiest for IRS so expect longer than average wait times, and when you reach a representative, be prepared to prove who you are.
While you may opt to call the IRS, remember that the IRS will not contact you by phone or by email regarding your refund. If you receive a call from someone claiming to be from the IRS or a debt collection agency regarding your tax refund, hang up immediately: It is a scam. If you receive a bogus tax refund, it's also a scam (click here for more details, as well as what to do).
