IRS Delays

The Internal Revenue Service delays are common and can affect every taxpayer regardless of income, the complexity of their tax returns, or any other reason. The solution to these delays is out of your hands if you’re experiencing any. 

Nonetheless, there are a few things you can do prior to filing your federal income tax return that can shorten how long you wait to get your refund. This article will go over the potential IRS delays about your tax return and what to expect.

Earned Income Tax Credit and Additional Child Tax Credit Delays

If you claimed the additional child tax credit or the earned income tax credit on your federal income tax return, you had to wait for your refund to be issued to you – at least by now, at the time of writing this article. 

The Internal Revenue Service doesn’t issue tax refunds to taxpayers that claimed the EITC and ACTC because the federal law requires the agency to do so.

Taxpayers that claimed these credits on their federal income tax returns will need to be a little more patient than others as the credits are fully refundable. However, the child tax credit won’t be fully refundable next year. The refundable portion will remain at $1,400.

IRS holding tax refund

There are other possibilities that can result in the IRS holding your 2024 tax refund. These are case-specific, and you need to treat them as such. Some of the reasons could be due to the following but certainly not limited to them. 

• You itemized deductions.
• You have income from a variety of sources.
• You filed taxes as a qualifying widow(er).
• You filed a paper tax return.

The above are the common reasons, with the paper tax returns being the most came across. Although e-filing is preferred over mailing a return, some taxpayers aren’t able to submit their returns electronically. This outcome isn’t feasible, but considering that plenty of typical tax forms can’t be filed electronically, it happens to taxpayers more often than not.

Refund sent but not received

Another common delay is not receiving the refund despite the IRS sending it and updating the status on Where’s My Refund tool. The likelihood of this is very slim, and it’s mostly due to how you chose to get your refund. Additionally, your bank may hold your tax refund for up to four business days. 

Furthermore, the transactions may not happen right away. After the IRS deposits your tax refund, it may not get to your bank right away. This process can take up to five business days though it usually takes a mere hour or so. If you’re experiencing this issue, make sure to contact your bank before the IRS, as it’s out of the agency’s control beyond this point. 

How long does it take IRS to process return and refund?

The wait times for your refund depend primarily on your tax return and the method of filing. Almost always, electronically filed tax returns take less time for the IRS to process. Because the IRS needs to process a return first before issuing and sending the refund, you’ll need to wait for this first. From there, you’ll get your refund after the IRS sends it.

After the IRS sends the refund, expect to receive the same day if direct deposited or three to five business days if it’s a check.