The eagerly anticipated tax season has officially commenced as the IRS opened the 2025 tax filing season on January 27, giving taxpayers until April 15 to submit their returns. For many, this time of year can be overwhelming, particularly for those anxiously waiting for their tax refunds. Luckily, the IRS has streamlined the refund tracking process, enabling millions to easily manage their finances.
According to IRS officials, "Most tax refunds are issued within 21 days." This commendable efficiency is achieved through two main channels: the IRS2Go mobile app and the online tool known as "Where's My Refund?" Both of these platforms allow users to track their refund status and receive real-time updates.
Should you decide to track your refund, the process is relatively straightforward, but it requires specific details. Taxpayers need to provide their Social Security number or Taxpayer ID, filing status, and the exact amount they expect for their refund. Once submitted, e-filers can typically check their status within 24 hours after submitting their return, as opposed to those who file on paper, who must wait about four weeks.
Upon checking their refund status, users will encounter one of three possible stages: "Return Received" indicates the IRS has received the return and is processing it. If all goes well, the next stage is "Refund Approved," confirming everything is on track and the refund will be sent soon. Finally, "Refund Sent" notifies filers the IRS has dispatched their money, with direct deposits usually showing up within five business days, whereas paper checks may take several weeks to reach the mailbox.
The 2025 tax year is shaping up to be similar to 2024. Last year, over 163 million taxpayers received refunds averaging around $3,167, only slightly less than the previous year. With rising living costs and inflation, many depend on these refunds to meet their financial obligations, and it's estimated about 37% of Americans, especially millennials, rely on these payments to cover essentials.
Notably, filers should be aware of additional variables affecting refund timing. For those claiming the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC), refunds may take longer to process due to additional verification requirements. The IRS notes these refunds can be expected around mid-February, with many receiving their credits late February or early March.
Taxpayers are encouraged to file their returns early and opt for electronic submissions to expedite the refund process. IRS Commissioner Danny Werfel commented, "People will see additional tools and features to help them with filing their taxes this tax season," highlighting the agency’s commitment to improving user experience and efficiency.
Any discrepancies on tax forms, such as misspellings or incorrect information, can inevitably delay refunds. To prevent this, filers should take extra care to review their submissions before filing. Establishing solid filing habits, such as using the Free File options available for those who made $84,000 or less, can also help taxpayers avoid obstacles during this busy season.
With all these resources at hand, monitoring your tax refund has never been easier. By utilizing the IRS2Go app or the "Where's My Refund?" tool, taxpayers can stay informed about their financial returns and the steps they can take throughout the process. Remember, timing is everything during tax season, and being proactive can mitigate the stress associated with waiting for refunds.
This year's tax season isn’t merely about filing – it's also about leveraging technology to make the experience smoother and more efficient. Taxpayers should embrace these tracking systems to help demystify the often perplexing wait for tax refunds and to manage their financial lives more smoothly.