The Internal Revenue Service (IRS) opened the 2023 tax filing season on January 23 in much better condition than the last two years. Here's what you need to know about tax refunds this year.
When to expect your Refund in 2023
According to the most recent information available, the IRS still anticipates issuing more than nine out of ten refunds in less than 21 days, if you:
file electronically,
rely on direct deposit, and
experience no problems with your return.
The processing of your return could take four weeks or longer if you expect a tax refund and you filed on paper.
Besides filing on paper, we've listed other reasons and their delay time for tax refunds:
Up to six months Filing the Form 1040-NR – requesting a refund of tax withheld on Form 1042-S
By February 28 Claimed EITC (Earned Income Tax Credit) or ACTC (Additional Child Tax Credit)
Avoiding delays Only if you are still awaiting processing of your 2021 tax return for acceptance by the IRS, enter $0 for last year’s AGI (Adjusted Gross Income) on your 2022 tax return. All other taxpayers should enter the correct AGI from last year's return.
How much Refund to expect
Expect fewer refunds in 2023 compared to last year’s refunds, which averaged nearly $3,200, as many of those refunds were tied to the enhanced ACTC (Additional Child Tax Credit).
However, the tax returns you'll file this year (for calender year 2022) the maximum Child Tax Credit has been reduced to $2,000 per child. This points to a drop of reimbursements that many families with children will see this tax season.
The IRS could also use all or part of your refund to pay off your debts, including:
past-due federal or state income tax,
state unemployment compensation debts,
child support, spousal support, and
student loans.
Offsets did not apply to most stimulus checks, but they do to federal income tax refunds. Some loans that are currently on a repayment pause, such as federal student loans and commercially held Federal Family Education Loan Program, or FFELP debt, may be exempt.
Entering into an installment agreement does not grant you an exemption. The installment agreement stipulates that the IRS will automatically apply any refund to the outstanding tax amount. You should keep your payments as usual, since your refund won't be offset against your regular monthly payment.
How to check on your Refund Status
Your refund information is generally available within 24 hours after the IRS indicates receipt of your e-filed return or about four weeks after you file a paper return.
Working with a tax professional like VauntCourier assures you the fastest possible way receiving your refunds! Independent of your tax preparer, if you want to know how far along your return is already processed, you can simply use the IRS website tool “Where’s My Refund?” or the IRS mobile app “IRS2Go” from your smartphone. To Access both you’ll need your:
SSN,
filing status, and
refund dollar amount
shown on your tax return.
The “Where’s My Refund?” status is displayed in three stages:
Return Received It literally means what it says —the IRS has acknowledged receipt of your tax return.
Refund Approved Your refund will be prepared for transfer to you using your chosen payment method.
Refund Sent Your refund is on its way! Before checking with your bank wait at least five days. Remember that bank policies on the availability of deposit funds may vary. You can count on about 6-8 days if you requested a paper check.
Does the “Where is My Refund” status tells you to call or submit additional information, you should do so immediately.
For amended returns please use the IRS “Where’s My Amended Return?” tool and note that it'll take much longer to be processed by the IRS.
You can also call the automated hotline to check on your 2022 refund or to report a lost, stolen, or destroyed refund check:
Regular Returns 1.800.829.1954
Amended Returns 1.866.464.2050
You can’t initiate a trace using the automated hotline if you filed jointly—you’ll have to complete Form 3911.
What not to do
Many taxpayers find it difficult to wait for their tax refunds. To make it easier for you, here are some tips on what to avoid:
Avoid making a time-sensitive purchase without having your tax refund in hand. If we've learned anything in recent years, it's that things often don't go to plan. Even if you believe to know what you're getting and the IRS expects to issue timely refunds this year—don't spend money that you don't already have. File electronically & avoid paper returns.
Don't call your tax preparer to check on the status of your tax refund They have no other information in their system that isn't available from the IRS. Pay special attention to EIP, EITC and CTC submissions
Never file a second return Some taxpayers believe that filing a second tax return defers their refund to an earlier date. It will likely just do the opposite!
VauntCourier will assist you every step of the way!
Appointments are available at our Wiesbaden Office, Clay Kaserne Office or via Online Video Chat (Skype, Zoom, Google Meets, WhatsApp or any other service you prefer)
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