The Internal Revenue Service has had the unenviable task of playing catch-up for several years as it deals with backlogs and staffing issues. That means millions of frustrated taxpayers have had to wait longer than usual to get their hands on their tax refunds that could amount to thousands of dollars.
There is good news on the way, though. According to personal finance writer Natasha Gabrielle at The Motley Fool, “for those who claim the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC), there is a longer wait to receive a refund payment.”
Gabrielle writes that, “by law, refunds that include these credits can't be issued before mid-February. The IRS needs additional time to verify eligibility and prevent errors and fraud.”
Just a Short Wait?
However, refunds for those who claimed the EITC or the ACTC could be issued by March 1.
Gabrielle says that there is also a higher chance that will occur if the following is true: you filed your return online; you choose to receive your refund by direct deposit; and the IRS found no issues with your tax return. Taxpayers who meet that criteria may see their refund a few days earlier.
“It could take a few extra days for your bank to accept your refund payment—so don’t be alarmed if you don’t see a payment on March 1,” she writes.
“If you’re still waiting for your tax refund and want to get an idea of your expected payment timeline, use the Where’s My Refund tool, which is made available by the IRS,” she adds.
It is also worth mentioning that the 2022 federal tax filing deadline is April 18, which still seems far off for some taxpayers. But according to CNBC, it would be a smart decision to file as soon as one can.
“You’re going to expedite the processing time (and) expedite any refunds requested,” Lisa Borrelli, a CPA and wealth planner at WSFS Wealth in Philadelphia, told the news outlet.
Filing early can also give taxpayers time to prepare if they owe any money to the IRS this year.
“If you have a balance due, you know what you’re dealing with and you have a couple of weeks to plan for it,” Misty Erickson, a tax-content specialist and project coordinator for the National Association of Tax Professionals, told CNBC.
The IRS already has given notice that most taxpayers who file a tax return with no errors should receive a refund within twenty-one days if they file electronically.
Ethen Kim Lieser is a Washington state-based Science and Tech Editor who has held posts at Google, The Korea Herald, Lincoln Journal Star, AsianWeek, and Arirang TV. Follow or contact him on LinkedIn.