How long does an electronic tax refund take? Well, it takes a much shorter time than if you filed physically. So you may want to consider e-filing your tax returns if you want to get your refunds faster.
How Long Does It Take To Get Electronic Tax Refund?
Electronic filing of your tax return is the fastest way to obtain a refund, both from the Internal Revenue Service and your state revenue department. The IRS states that nine out of 10 taxpayers will receive their refund in 21 days or less of their return being accepted. After the return has been accepted by the IRS, anxious filers can check tax return status online at the agency's website, or with the IRS2Go mobile app.
Rules for E-File Providers
Under IRS regulations, any tax professional that prepares more than 10 personal income tax returns per year for a fee must electronically file them. In addition, all tax software providers must allow for electronic filing.
Electronic filing for tax returns typically opens in late January of each year, although late action by Congress may require the IRS to delay the opening of e-file servers to give the agency time to make computer system changes as required by updated tax laws.
Tax Refund Timeline
The IRS publishes a refund cycle chart each year. This IRS refund timeline chart is primarily produced as a reference for tax professionals, but is freely available on the IRS website.
The chart shows when refunds are typically processed for returns accepted on certain dates. Note that the IRS must accept the return in order to issue your refund in a timely manner. The IRS heavily advises against planning to receive your refund by a particular date for purposes of making major purchases or meeting financial obligations.
Preventing Return Processing Delays
A number of factors can delay the processing of your tax return and result in a delay in receiving your refund. Always double-check your tax return to ensure it is thorough and free of errors.
If you are using tax software to prepare your own tax return, take advantage of the error check feature of your software and apply all software updates to make sure you have the latest version of all forms. Before filing, double-check all Social Security numbers entered on the return and your address.
Lastly, double-check your bank account and routing number if requesting direct deposit. These steps help ensure your return is accurate and won't be rejected by the IRS computer systems.
Considering Tax Refund Loans
Some tax professionals and software products may offer you additional options for receiving your refund. You may be able to obtain a pre-paid Visa card or other type of cash card. You may also be able to pay your tax preparation fees this way, often called a refund transfer.
These options incur additional fees and do not result in obtaining your refund any faster. Some tax stores also offer a refund anticipation loan, which lends up to your refund portion minus the interest and loan fees.
These loans bear exorbitant interest rates, ranging from 36 to as much as 500 percent annual percentage rate, and require significant fees. The remainder of your refund does not come any faster from using a refund anticipation loan and may actually take longer because it must come through the lender.
Checking on a Refund
If you have not received your refund by the expected date, allow for at least a 24-hour tax return online window before you can begin checking for refunds. And then, after the agency has received your electronic return, you can check on its status through the IRS' "Where's My Refund" tool. You will need your Social Security number, your filing status and the exact amount of your refund.
Read More: Where's My Tax Refund: An Easy Guide
- IRS.Gov: Topic No. 152 Refund Information
- IRS.Gov: IRS Urges Taxpayers to Choose a Tax Preparer Wisely for the Filing Season Ahead
- CPA Practice: 2022 Estimated Income Tax Refund Date Chart - When Will You Get Your Tax Refund?
- IRS.Gov: Held or Stopped Refunds
- IRS.Gov: Avoid Errors; File an Accurate Return
- Law Insider: Refund Transfer definition
- WI.Gov: Refund Anticipation Loans (RALs)
- GovInfo.Gov: Refund Anticipation Loans (05-JUN-08, GAO-08-800R).
- IRS.Gov: Where's My Refund?
Jassen Bowman is an IRS-licensed enrolled agent who specializes in IRS collections representation, small business tax law and international tax treaties. He has also served as a licensed real estate broker and investor. Bowman holds a Bachelor of Science in nuclear engineering technology.