By Betty Agosto
Tax Senior
Email Betty
Why are you waiting to file your taxes? Here’s a reason to get started: The IRS has already returned more than $145 billion dollars in refunds to taxpayers this year!
Did you know the average individual refund amount is 5.7% larger from this time in 2024? In the sixth week of tax season last year, the average refund was $3,145. In the sixth week of tax season this year, refunds have been averaging $3,324 — a boost of $179. And that’s just the average!
The sooner you file your tax return, the faster you will enjoy the rewards.
To receive your refund faster, the IRS recommends electronically filing your return and choosing direct deposit as your refund method. You will need to enter your bank account and routing numbers within your tax software or request direct deposit through your tax preparer.
As the IRS states on its website: “Combining direct deposit with electronic filing is the fastest way to receive your refund. There’s no chance of it going uncashed, getting lost, stolen, or destroyed. The IRS issues more than nine out of 10 refunds in less than 21 days.”
If that doesn’t convince you, it’s imperative to note that “eight out of 10 taxpayers get their refunds by using direct deposit.” Although the IRS can mail you a paper check, direct deposit is faster, safer and not to mention it is free! “The IRS uses the same electronic transfer system to deposit tax refunds that is used by other federal agencies to deposit nearly 98% of all Social Security and Veterans Affairs benefits into millions of accounts.”
While you wait for your refund, you can track its progress using the Where’s My Refund? tool. The Where’s My Refund? tool provides a personalized date after the return is processed and a refund is approved. It is now available through the quick and easy IRS2Go app. The tool tracker displays the progress in three phases:
- Return Received — The IRS has received and is processing your return.
- Refund Approved — Your refund has been approved, and the IRS is preparing to issue it by the date shown.
- Refund Sent — The IRS has sent the refund to your bank or in the mail. It may take up to 5 days to show in your bank account or several weeks for your check to arrive in the mail.
Your status will appear …
- 24 hours after you e-file a current-year return.
- 3 to 4 days after you e-file a prior-year return.
- 4 weeks after you file a paper return.
To utilize the Where’s My Refund? tool, taxpayers must enter their Social Security or Individual Taxpayer Identification number, filing status and the exact dollar amount of their expected refund from the original tax return for the year they are checking.
Calling the IRS will not speed up a tax refund. The IRS updates the tool once a day, usually overnight, so there is no need to check the status of your refund more often than once a day.
One last way to ensure a quick turnaround of your return and refund is to take care in preparing and processing your return. A few reasons a refund may be delayed are …
- The return may include errors or be incomplete.
- The return could be affected by identity theft or fraud.
- Many banks do not process payments on weekends or holidays.
If we can assist you further with refunds or any other tax-related matters, please call us at (317) 608-6699 or email Betty.