Each and every year, 75% of Americans receive a tax refund from the IRS. This fact means that the IRS has to process tens of millions of tax returns every year as well. Given the current state of the labor market, the IRS has explicitly expressed concern regarding the timing of tax refunds this year.
The treasury department warned in late January that taxpayers may have to wait longer than usual as the IRS continues to process refunds that are in their backlog from 2020.
It’s estimated that the agency has over 6 million returns to process from the previous year. This, coupled with widespread staffing shortages, has left the treasury department scrambling.
We’ve been receiving tons of questions since the announcement and would like to address some of them below:
Is my refund going to get delayed?
The announcement has resulted in many taxpayers being concerned about the timing of their refund. Rest assured, however, that if you file your taxes in a timely manner, you can expect to receive your refund within 21 days of filing.
However, there are a few circumstances that may cause delays regardless of you doing everything the right way. The IRS said that it cannot issue refunds for EITC (Earned income tax credit) or Child Income Tax Credit before mid-February. This time buffer is in place to help the IRS stop fraudulent funds from being issued.
The IRS has advised that these filers will most likely receive their refund in early March if they filed soon after January 24th, 2022.
How do I make sure my tax refund arrives on time?
Although there is no surefire way to get your refund on time, there are steps you can take to increase your chances during this turbulent time:
- Reduce the likelihood of errors on your return by filing with a professional
- Ensure all your documents are in order
- There have been some hiccups with child tax credit calculations
- File on time & Get your refund through direct deposit
Working with an accountant to file your taxes will help ensure that errors are reduced, deductions are legally maximized, and all of your documentation is in order. The last thing you want in the midst of delays and staffing shortages is to have your return flagged for irregularities and trigger an audit.
How do I get my stimulus check?
Similar to 2020, if you were qualified for a stimulus payment and did not receive one over the course of 2021, you will need to file a tax return and get the stimulus as part of your refund. There was only one stimulus distributed in 2021, totaling $1400.
What should I do next?
Give us a call and we’ll help you file swiftly, accurately and ensure that you are maximizing your allowed deductions. Don’t wait until the last minute to file, take the correct steps and you should receive your refund within 21 days of filing!