The 2025 tax season has officially begun, with the Internal Revenue Service (IRS) commencing its operations on January 27, 2025. During this period, the agency anticipates receiving approximately 140 million tax returns before the April 15 deadline, which falls on a Tuesday this year. Many taxpayers are gearing up to file their 2024 income tax returns and eagerly waiting for their much-anticipated refunds.
For those wondering about their refund status, the IRS provides a user-friendly tool called ‘Where’s My Refund?’ This online resource allows taxpayers to check their refund status within 24 hours of electronically filing their return. For those who submit their returns via paper, the status will be available approximately four weeks after filing. The IRS updates these statuses nightly, ensuring taxpayers have the latest information at their fingertips.
According to the IRS, most refunds are processed within 21 days, providing timely relief for households awaiting their checks. Last year, about two-thirds of taxpayers received refunds, with the average refund amount hovering around $3,100. It’s not surprising many Americans rely on these refunds for various financial needs, such as paying off debt, contributing to savings, or making significant purchases.
This year marks the continuation and expansion of the IRS's Direct File program, which allows eligible taxpayers to file their tax returns directly through the IRS, bypassing the need for commercial tax preparation software. The program is set to be available to residents of 25 states, benefiting around 32 million taxpayers seeking cost-effective solutions during tax season.
Among the states offering this service are Maryland, Massachusetts, New York, and Florida. Notably, the IRS Direct File program will help reduce the financial burden of tax preparation for many. Taxpayers can verify their eligibility and get more information directly from the IRS website.
Taxpayers can access the 'Where's My Refund?' tool by providing their Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN), filing status, and the total expected refund amount. Tracking one’s refund is straightforward:
- Refund status can be checked 24 hours post e-filing for the current tax year.
- For previous years’ returns, it typically takes three to four days after e-filing for the status to appear.
- Those who mailed paper returns will have to wait four weeks to receive any updated information.
The IRS advises using direct deposit as the fastest way to receive refunds. This method minimizes the risk of checks being lost or stolen. Taxpayers may opt to have refunds deposited in one or several accounts, enhancing both convenience and safety.
For Maryland taxpayers, they can also monitor their state tax refunds through the respective online portal. The IRS emphasizes patience, advising individuals to wait four to six weeks after filing before checking for electronically filed returns and approximately 10 to 14 weeks for paper returns.
Tax season is always filled with varying degrees of urgency and inclination to file early. Filing electronically and taking advantage of direct deposit can significantly speed up the process to receive refunds. Also, the IRS indicates shorter wait times for calls, providing assistance with tax-related inquiries, especially during peak times like Mondays and around the April deadline.
Still, taxpayers should be aware of potential causes for delays. Corrections or additional reviews of returns can push expected timelines back, and the IRS will communicate with taxpayers through mailed letters should any issues arise.
The importance of filing accurately cannot be overstated, as improper filing can lead to unnecessary delays or complications with refunds. Taxpayers are urged to collaborate closely with tax preparation services if additional guidance is required.
This tax season will present both opportunities and challenges for many, and being informed about filing timelines, refund tracking, and the services available through the IRS can pave the way for smoother experiences for millions of Americans. Having the right tools, like 'Where's My Refund?', and pertinent timelines, such as the filing deadline of April 15, can help taxpayers navigate the upcoming weeks with minimal stress.
With each new tax season, the IRS continues to implement measures aimed at enhancing the filing experience, increasing efficiency, and maintaining transparency for those seeking refunds. Keeping abreast of these changes is fundamental for any taxpayer aiming to secure their refund swiftly this year.