With the 2021 tax season finally wrapping up, the IRS has now announced that they are experiencing processing delays for taxpayers’ tax refunds. Typically, you receive your refund within 21 days of filing, but this year you can expect to wait six to eight weeks. Learn more about when to expect your tax refund.
Reasons for Tax Refund Delays
Due to COVID-19, the IRS and U.S. Postal Services have been experiencing many delays with receiving taxpayers’ tax returns, which has a caused a few processing delays. It’s important to make sure that when you are filling out your tax return forms you fill them out correctly. Your tax refund may be delayed if your tax return is incomplete or has any errors. Also, if you claim tax credits during this tax season, be prepared to have delays on your refund.
How to Speed Up Your Refund Process
As a taxpayer, you decide how you submit your return and how you want to receive your refund. The way you choose to file plays a big part in when you will receive your return.
Taxpayers who filed their tax returns electronically and requested direct deposits for their refund will receive theirs first. Those who submitted their return by mail and requested a paper check for their tax refund are expected to experience longer delays.
Track Your Tax Refund Status
If you’re waiting to receive your tax refund, the IRS has a Where’s My Refund? tool you can use. This online tool will provide you with information on the status of your return if you haven’t received it yet. This tool is updated daily and is a better option than trying to directly call the IRS. You will just need to provide your Social Security Number or individual taxpayer identification number.
How to Spend Your Tax Refund
Once you receive your tax refund you may be looking for some smart ways to use it. Here are some options:
1. Save it
Putting your refund directly into your bank account is a great way to build up your savings for an emergency.
2. Pay off credit card debt
Use your refund as an opportunity to help improve your credit score by paying off your student loans or outstanding credit card bills.
3. Save for retirement
It’s never too early to start saving for retirement! The earlier you start preparing and saving the better off you will be when it’s finally time to retire.
4. Invest in the stock market
If you don’t need to put your refund into use right away, consider investing it in stocks to help grow your savings and prepare for your family’s future.
If you have any questions or concerns regarding your tax refund, contact the accounting professionals at Satty, Levine & Ciacco, CPAs. P.C. We are here to help! Visit our website for more information.