Tax season is officially underway, and as the IRS gears up for what it anticipates will be over 140 million returns filed by the April 15 deadline, many taxpayers are eager to learn how to track their refunds. With the agency's latest tools, monitoring your tax refund status has never been easier.
The center of attention this tax season is the IRS's free online tool, known as Where’s My Refund? This tool is useful not just for keeping tabs on your refund status but is also integral to helping taxpayers understand when they can expect their money back. According to the IRS, if you file your tax return electronically, you should expect your refund within 21 days or less if you select direct deposit. If you file by paper, it'll likely take four weeks or more, with those needing amendments potentially waiting longer.
To utilize the Where’s My Refund tool effectively, you'll need several key pieces of information on hand, including your Social Security number or Individual Taxpayer Identification Number (ITIN), your filing status, and the exact refund amount based on your return. Given these requirements, taxpayers can access the refund status from the IRS website or via the IRS2Go app, making it possible to get instant updates.
The IRS's approach this year becomes particularly important as it also faces challenges due to staffing levels. Recently, alongside the tax season surge, reports indicated potential staffing reductions at the IRS due to initiatives like the offering of buyouts for federal employees, which could impact service during this high-demand period. Although the IRS has not directly commented on these changes, the need for streamlined processes is evident.
One exciting development for taxpayers is the expansion of the IRS Direct File program, which allows individuals to submit their federal tax returns without going through commercial tax preparation software. Previously open only to residents of twelve states, this year it has expanded to cover 25 states, including New Jersey and New York. This means even more people can take advantage of this free filing option, especially those with straightforward tax situations.
For New Jersey residents, you can engage with the IRS Direct File if you have full-year residency and earned all your income within the state, with the same filing status for both federal and state returns. This tool, which is available in both English and Spanish, can function on multiple devices, from phones to computers, ensuring accessibility for everyone.
Key dates are fast approaching, with January 27, 2025, marked as the start of the IRS accepting tax returns. Remember, the tax deadline is April 15, 2025, but be mindful of the potential for deadline adjustments due to holiday schedules. This year, the IRS estimates average refunds could hover around $3,200, depending on individual withholding levels throughout the year.
Taxpayers should also be aware of various credits they may qualify for, such as the Child Tax Credit, which offers up to $2,000 per qualifying child, or the Earned Income Tax Credit (EITC). To qualify for EITC, you must have certain income levels, which can greatly benefit eligible low- to moderate-income households.
While keeping abreast of these programs, it’s wise for taxpayers to be vigilant about their tax submissions, as filing errors can lead to delays. This tax year, the IRS warns against assuming any refund will arrive by specific dates, particularly when financial decisions hinge on expected refund timings.
Navigational tools like Where’s My Refund help maintain transparency and communication between the taxpayer and the IRS. For those filing electronically, the system can often update status within 24 hours. If you filed last year's return through paper, expect information to become available within four weeks. All refund status updates are processed daily, so checking back regularly is encouraged.
With tax season well underway, now is the perfect time for American taxpayers to familiarize themselves with these available tools and programs. Strong preparation and knowledge of the refund tracking process can alleviate some of the stress typically associated with tax season. By adhering to filing deadlines and utilizing the resources laid out by the IRS, individuals can navigate this year's filing period with confidence, ensuring all eligible credits and refunds are accurately claimed.
Keep close tabs on your refund status, and be proactive about leveraging IRS tools to aid your filing process. With the IRS Direct File program, the simplified tracking of refunds, and the various credits available, taxpayers can make the most of this tax season.