TAXPAYERS have been warned about refund delays, but they can speed up the process by selecting a specific option when filing.
It comes as Americans claiming two types of credits are expected to experience the most delays, according to the Internal Revenue Service.
Tax returns for the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC) may take longer to process.
Anyone who chose these credits will not receive their refunds before mid-February because the IRS will need to conduct additional identity checks first, according to the agency’s website.
Filers seeking the EITC or ACTC will not receive their tax returns in bank accounts or on debit cards until March 3, at the most.
It comes after the IRS opened tax filing season on January 27 of this year.
The agency anticipates receiving over 140 million individual tax returns for tax year 2024.
Taxpayers should strive to meet the federal deadline of Tuesday, April 15.
The agency notes that several factors in the tax filing process influence how long it takes for someone to receive their tax refund.
However, there are ways to get ahead of the curve; those who file early are more likely to receive their refund sooner.
Taxpayers who are particularly eager to see their refunds should file electronically with direct deposit rather than on paper, as recommended by the IRS.
Most refunds are issued in less than 21 days, but the IRS advises taxpayers not to expect to receive the funds by a specific date.
When a person receives their tax refund varies depending on the taxpayer and their spending over the previous year.
Some returns, particularly those involving large purchases, may take longer to review or address.
To check the status of a refund, use the IRS2Go app or the “Where’s My Refund?” link on the IRS website.
DEADLINE EXTENSION
The IRS has granted extensions to taxpayers affected by extraordinary circumstances.
Millions of Los Angeles taxpayers who have been affected by California’s wildfires have been granted an extension to file.
Those affected by the fires have until October 15 to file their tax returns.
Some may also be eligible for disaster assistance.
Drivers who purchased an electric vehicle with a $7,500 tax credit at a dealership last year should also include this information in their paperwork with the IRS.
By doing so, taxpayers demonstrate to the IRS that they are eligible for the credit.
To help taxpayers get through this nerve-racking process, the IRS provides free online and in-person tax preparation services.
Eligible taxpayers can use the IRS Free File, IRS Direct File, Volunteer Income Tax Assistance, and Tax Counseling for the Elderly programs.
Additionally, military members and certain veterans with no income limit can look into MilTax, which provides free return preparation and electronic filing software, according to the IRS website.
How to choose a tax professional
The IRS has warned taxpayers to select legitimate tax professionals to avoid tax-related identity theft and financial harm.
“Ghost” preparers – Beware of anyone who won’t sign the tax return as the paid preparer, and asks you to sign and file the return yourself.
The IRS requires tax preparers to sign returns and not doing so is a red flag and may signal fraud.
These “ghost” preparers may be looking to make a quick profit and promise large refunds or charge fees based on the refund amount.
Valid ID for tax preparers – Taxpayers should always choose a tax preparer with a valid Preparer Tax Identification Number (PTIN).
Further tips :
- Look for a tax return preparer who’s available year-round in case of future questions
- Check for disciplinary actions and the license status for credentialed preparers on the Better Business Bureau website
- Discuss service fees upfront – avoid those who base their fees on a percentage of the refund
- Never sign a blank or incomplete return
