The IRS has officially kicked off tax season, expecting 140 million returns to be filed by April 15. To streamline the process, the agency has introduced an enhanced online tool, Where’s My Refund?, allowing taxpayers to track their refund status within 24 hours of e-filing or four weeks after submitting a paper return.
Refund Timelines:
- E-filed returns: Refunds are typically issued within 21 days or less.
- Direct deposit: Faster processing than mailed refunds.
- Paper returns: May take four weeks or longer, especially if amendments or corrections are needed.
- IRS advisory: Taxpayers should not rely on refunds arriving by a specific date for major financial decisions.
Checking Your Refund Status:
The Where’s My Refund? tool updates once daily and requires:
- Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)
- Filing status
- Refund amount from tax return
How Refunds Work:
Taxpayers receive refunds if they overpaid throughout the year due to withholding or estimated payments. Refundable tax credits, such as the Earned Income Tax Credit (EITC) and Child Tax Credit, can also increase refunds.
Tax Credits to Know
The Earned Income Tax Credit (EITC) is a valuable benefit for low- and moderate-income workers, helping to boost their financial well-being. To qualify, individuals must meet certain income limits that vary based on their marital status and the number of dependents they have.
For instance, singles with no children must have an income of $18,591 or below, whereas married couples filing jointly with three or more children need to earn $66,819 or less. To streamline the eligibility process, the IRS offers an online EITC Assistant. In addition to the EITC, families can benefit from the Child Tax Credit, which provides up to $2,000 for each qualifying child. To be eligible for this credit, children must possess a Social Security number, be under the age of 17 by the end of 2024, and be claimed as dependents on the tax filer’s return. Full eligibility for the Child Tax Credit applies to individuals with an annual income not exceeding $200,000 or $400,000 for joint filers, making it a significant financial resource for many families.
What’s New for 2024?
The IRS has expanded its Direct File program, which allows taxpayers to file taxes directly with the agency for free—eliminating the need for commercial tax prep software. Available in 25 states, up from 12 in last year’s pilot, the program benefits those with simple W-2 filings.
According to IRS data, participants in the 2024 pilot program collectively claimed over $90 million in refunds.
Nevertheless, a new federal workforce reduction initiative announced by former President Donald Trump this week offers buyout packages to government employees, potentially affecting IRS staffing during a critical tax season. The agency has not yet commented on how this may impact processing times or customer support.
