Where is my money??
The best part of tax season is getting your refund, and we know you are excited to get yours. Due to some social media outlets, misunderstandings can take place about tax refunds. Here are some common beliefs analyzed about your tax refund.
Myth 1: All Refunds Are Delayed
The IRS actually issues more than 90% of tax refunds in less than 21 days, but some refunds can take some more time. Recent legislation requires the IRS to hold refunds for tax returns claiming the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) until the middle of February. Other returns may require additional review for many different reasons and take longer. For example, the IRS continues to strengthen security reviews to help protect against identity theft and refund fraud.
Myth 2: Calling the IRS or My Tax Professional (that’s us!) Will Provide a Better Refund Date
Many people think that talking to the IRS or calling us at Gold Standard is is the best way to find out when they will get their refund. While we love hearing from you, we are sorry to inform you that we cannot provide more information about your exact refund date. The best way to check the status of a refund is online through the “Where’s My Refund?” tool at IRS.gov or via the IRS2Go application for your phone (see our blog post all about it here).
The IRS updates the status of refunds once a day, usually overnight, so checking more than once a day will not merit new information. “Where’s My Refund?” has the same information available to IRS telephone assistors so there is no need to call unless requested to do so by the refund tool.
Myth 3: Ordering a Tax Transcript is a Secret Way to Get a Refund Date
Ordering a tax transcript will not help in letting taxpayers know when they will get their refund. The IRS notes that the information on a transcript does not necessarily reflect the amount/timing of a refund. While taxpayers can use a transcript to validate past income and tax filing status for certain situations, they should use “Where’s My Refund?” to check the status of their refund.
Myth 4: “Where’s My Refund?” Must be Wrong Because There’s No Deposit Date Yet
The IRS will update “Where’s My Refund?” on both IRS.gov and the IRS2Go mobile app with projected deposit dates for early EITC and ACTC refund filers a few days after February 15th, 2017. Taxpayers claiming EITC or ACTC will not see a refund date on “Where’s My Refund?” or through their software package until then.
These refunds likely will not start arriving in bank accounts or on debit cards until the week of February 27th, provided there are no processing issues and the taxpayer choose direct deposit. This additional period is due to several different things, including banking and financial systems needing time to process deposits.
Myth 5: Delayed Refunds Will be Delivered on February 15th
By law, the IRS cannot issue refunds before February 15th for any tax return claiming EITC or ACTC. The IRS must hold the entire refund and will begin to release these refunds starting February 15th.
These refunds likely won’t arrive in bank accounts or on debit cards until the week of February 27th.
