As tax season 2024 begins, many await IRS refunds and further updates. This year, delays may occur due to staff shortages, system updates, and more audits. Key concerns include delays, schedules, and new tax laws. Understanding these can help manage expectations. This article covers IRS refund update for 2024, including timelines, credit impacts, and tips for a smoother refund process. Stay informed for the best refund experience.
IRS Tax Refund Update 2024
When you overpay taxes during the year, the IRS gives you back the extra money and this is called IRS Tax Refund. This happens due to too much tax being taken from your paycheck, tax credits like Earned Income Tax Credit (EITC) or Child Tax Credit, or claiming deductions that lower your taxable income. After you file your tax return, the IRS calculates what you owe. If you’ve paid more, you get a refund, usually within 21 days. Some people overpay on purpose for a bigger refund. A tax refund is simply getting back your own money, not a gift. You can use it for savings, investments or personal spending.
IRS Tax Refund Update 2024 Details
| Country of Origin | USA |
| Applicable State | All states of USA. |
| Regulating Body | IRS |
| Category | Financial Aid |
| Applicable persons | All tax-paying individuals. |
| Age Limit | 19+ years |
| Website | https://www.irs.gov/ |
IRS Tax Refund Eligibility Criteria
To get into the eligibility criteria for an IRS tax refund, remember these points:
- Residency: You need to be a U.S. citizen or resident alien.
- Filing Requirement: File a federal income tax return if your income is above the threshold.
- Overpayment of Taxes: You get a refund if you’ve paid more tax than needed, including extra withholding, estimated payments, or excess FICA taxes.
- Eligibility for Tax Credits: Refundable tax credits like Earned Income Tax Credit (EITC), Child Tax Credit (CTC), American Opportunity Tax Credit (AOTC), and Premium Tax Credit might make you eligible for IRS Tax Refund.
- Deductions: Standard or itemized deductions reduce taxable income, potentially resulting in a refund.
- Amended Returns: Filing an amended return might get you a refund if corrections are needed.
- Filing Requirements: Usually, a federal tax return is necessary to receive a refund unless your income is very low.
Delays in IRS Tax Refund
There can be multiple factors due to which there are delays in IRS Tax Refund in 2024. They can be:
- The IRS uses old IT systems and has high volume of returns, narrow filing window, and enhanced security checks.
- COVID-19 disruptions, especially for Employee Retention Credit claims results in delays in IRS Tax Refund.
- Errors or missing information in returns, or claiming certain tax credits requiring fraud checks.
- Suspected fraud or past identity theft, staffing issues, or system upgrades.
- Mailing issues with paper returns and checks, IRS review or audit, filing too early or near the deadline.
What to Do if Your IRS Tax Refund is Delayed?
If you see that your IRS Tax Refund is delayed, then once check the status with “Where’s My Refund?” tool, powered by IRS. Parallelly, verify whether your provided information like mailing address, personal details etc. If you still see delays, then contact IRS after 21 days (e-file) or 6 weeks (mail).
Expected amount under IRS Tax Refund
The expected average federal income tax refund for 2024 is about $2,850, up 3.5% from last year. However, the actual amount varies based on factors like taxes paid versus owed, filing status, tax credits, deductions, withholdings, and self-employment payments. Over payments from paychecks or estimated quarterly taxes, tax credits like the Earned Income Tax Credit and Child Tax Credit can also result in increased refund amount. Self employed individuals who overpay estimated taxes might get eligible for refunds too. Using tax software or a professional can help estimate your refund. But, factors like unpaid debts or under withholding can reduce your refund.
IRS Tax Refund Payment Schedule 2024
The IRS typically processes refunds for electronically filed returns with direct deposit within 21 days. The time frame can vary due to factors like return complexity and errors. For 2024, tax processing started on January 29, with a filing deadline of April 15. Paper returns generally take 6-8 weeks. Delays can occur because of additional reviews or errors. Refunds involving certain credits might not be issued until mid-February due to federal laws. Errors, missing information, identity verification, or processing backlogs can also cause delays. Government debts can reduce your refund.
FAQ on IRS Tax Refund Update 2024
- When can I expect my IRS tax refund in 2024?If you file electronically and opt for direct deposit, you should get your refund within 21 days. Filing early and accurately speeds things up. Paper returns take a bit longer, around 6-8 weeks.
- How can I check the status of my IRS tax refund?Use the “Where’s My Refund?” tool on the IRS website or the IRS2Go mobile app. You’ll need your Social Security or ITIN number, filing status, and the exact refund amount from your return.
- When is the last date to file for IRS Tax Refund in 2024?The deadline to file your 2023 tax return electronically for the 2024 tax season is April 15, 2024. If you need more time, request an extension, which gives you until October 15, 2024. You should get your refund within 21 days of filing. Requesting an extension requires further other criteria. Head to the IRS’s website for more information.
- Can I change my address after filing my tax return?Yes, you can change your address after filing. Inform the IRS of your new address to ensure your refund is sent to the right place.