To begin, let’s clarify what a tax refund is: it’s a refund from the government for overpaying taxes. The IRS estimated an average of $3,221 for data collected through March, similar to 2024.
Direct deposit recipients typically receive an additional $60. According to experts, there is less room for error in the process. In February, the average was $2,169, but increased as statements with credits like the EITC and ACTC arrived.
These are processed after mid-February, so be patient; if you claimed these benefits, your check may be larger. Yes, carefully review the numbers. If you make a mistake with your SSN or bank account information, you will lose your fast money.
Errors that could withhold your tax refund
We’ve compiled a list of common mistakes made by American taxpayers to help you avoid making the same ones.
Here is the black list of what you should not do:
- Putting your SSN or name wrong: It seems obvious, but it is the most common mistake. The IRS has no magic to guess who you are.
- Forget credits or deductions: Did you pay off student loans? Did you donate to a cause? Claim it! The EITC, for example, is a lifeline for low incomes.
- Wrong direct deposit: One misspelled account number and your money could end up in limbo (or in someone else’s hands).
Keep in mind that if you owe back taxes, support, or student loans, the IRS may deduct your refund. They send you a notification, but it’s best to be safe.
What happens if I file my tax return late?
Filing after April 15 results in a 5% monthly fine on what you owe, up to 25%.If you expected a refund, there is no penalty. But why take the risk? It’s better to use tools like Where’s My Refund? to track your money and solve problems on time.
Filing on paper takes up to 6 weeks for the IRS to process your return. Direct deposit and e-filing allow for faster money delivery, often in under 21 days. Oh, and if you’re due for an audit (hopefully not!), having everything digital makes things easier.
If your refund appears low, compare it to previous years. Changes in your tax situation (for example, an increase in income) can explain the difference. And if something smells bad, contact the IRS right away.
