Millions of Americans are racing against the clock to file their tax returns before the deadline on April 18, ensuring they receive any refunds they may be owed.
Updates on Tax Season
Tax season began on January 23, and by February 17, the Internal Revenue Service (IRS) had already received 36.8 million tax returns, representing a 9.9% increase in the total number of returns compared to the same time last year, according to The U.S. Sun.
With over 168 million individual tax returns expected to be filed this year, the IRS has warned that refunds will generally be smaller due to the expiration of several pandemic relief programs, which means Americans can no longer expect stimulus payments.
The average amount refunded this year is $3,241, which is 9.7% lower than last year’s average of $3,590. The IRS expects many more taxpayers to file their returns electronically and for good reason. Electronic filing provides many benefits, including faster refunds.
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When To Receive the Tax Refund?
Taxpayers who filed their returns electronically should expect to receive a refund after 21 days, whereas those who file their returns on paper can expect to wait for up to six to eight weeks to receive their refund, according to a published article in CNBC.
To speed up the refund process, taxpayers should opt for direct deposit. By setting up a direct deposit with the IRS, taxpayers can ensure that their refund will go straight to their bank account. This will speed up the refund process and only takes a few minutes to set up. Even credits like the child tax credit or earned income credit will go straight to the taxpayer’s account. Those waiting on the third stimulus check payment or a plus-up payment can also receive it faster with a direct deposit setup.
To avoid any delays in getting your refund, you should ensure you’re filing a complete and accurate return. Simple things like misspellings can cause delays. Always check that your social security number is correct and ensure that any mathematical equations are accurate. It’s easier to avoid making a mistake when filing your return online. If you’re using fillable forms from the IRS and the electronic filing system rejects your return, it’ll provide an error code telling you the problem. Usually, you can correct the error and try to e-file again.
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