Let’s face it: filing taxes can be a real headache. Between gathering documents, figuring out deductions, and hitting that submit button, it’s easy to feel overwhelmed. But for many of us, there’s a light at the end of the tax tunnel: a tax refund! In fact, according to the IRS, over 75% of American taxpayers receive a refund each year – an average of $3,213 in 2024. That’s a significant chunk of change that can go towards anything from bills and debt to ease the financial burden during the starting months of the year.
However, the wait for that refund can feel like an eternity. Weeks turn into what feels like months as you check your mailbox (or bank account) daily, hoping for that refund to get deposited. The uncertainty and lack of control can be nerve-wracking.
This guide is here to help! For those who have just filed their taxes, as well as those still behind, here is a simple guide to explain everything about tax refunds. We’ll take you through everything you need to know about refunds, from understanding how they work to the different ways you can track their status once you’ve filed.
By the end of this guide, you’ll be equipped to file your return with confidence and ditch the anxiety of waiting blindly for your refund. Let’s get started!
Understanding Tax Refunds
Before we learn more about the status, let’s first discuss tax refunds in detail. Depending on the taxes paid the previous year, you could be eligible for a refund of the overpaid amount by the Internal Revenue Service (IRS). The refund can help ease the financial burden. Here’s a breakdown of how tax refunds work:
The Filing Process
Every year, you’re required to file a tax return with the IRS. This document details your income for the previous year (in this case, 2023) from various sources like wages, investments, and interest. You’ll also report any deductions and credits you qualify for, which can reduce your overall tax liability.
Calculating the Math
Once you’ve filed your return, the IRS calculates your tax liability. This is the total amount of federal income tax you owe based on your income and filing status.
Throughout the year, your employer withholds taxes from your paycheck based on the information you provide on a form called a W-4. This withholding acts like a prepayment towards your final tax bill.
Refunds and You
Now comes the key part: if the total amount withheld from your paychecks throughout the year exceeds your actual tax liability (as calculated on your return), you’ve essentially overpaid your taxes! That’s where your tax refund comes in. The IRS will send you back the difference between the total tax withheld and the amount you actually owe.
Think of it like this: let’s say you owed the IRS $5,000 in taxes for 2023, but your employer withheld $6,000 from your paychecks throughout the year. In this scenario, you’ve overpaid by $1,000, which would be your tax refund.
Benefits of Filing on Time, Even for Refunds
Even if you’re expecting a refund, filing your taxes on time is crucial. Here’s why:
1. Claiming Credits
Tax credits reduce your tax liability and even lead to a larger refund. One example of common credit includes the Child Tax Credit for parents. By filing on time, you ensure you don’t miss out on these valuable benefits.
2. Avoiding Penalties
The IRS imposes penalties for late-filed tax returns. Even if you’re expecting a refund, these penalties can eat into your hard-earned money. A Failure to File Penalty is charged by the IRS, which is 5% of unpaid taxes each month the tax return is late. This can chip away your refund amount.
3. Getting Your Refund Faster
The sooner you file, the quicker the IRS can process your return to issue your refund. Normally, the IRS can take around 21 days to process your returns if submitted electronically, while it could take months if done by mail.
Now that you understand how tax refunds work, let’s get you started on filing your 2023 tax return (tax year 2024)! Here, we’ll cover different filing options and the advantages of e-filing.
Filing Your 2023 Taxes
Now that you understand how tax refunds work, let’s get you started on filing your 2023 tax return (the tax year 2024)!
Finding the Right Filing Option
There are several ways to file your taxes, each with its own advantages and considerations. Here’s a quick breakdown:
- Tax Software: Online tax software programs offer a user-friendly interface to guide you through the filing process. Many companies offer free basic versions, while more complex returns might require paid upgrades. Remember, tax software can assist with filing taxes; however, for complex tax scenarios, they may offer limited assistance.
- Tax Professionals: A tax service like ATC Income Tax provides a personalized approach, ensuring accuracy and maximizing your refund potential. With over 20 years in the tax preparation industry, we are well-versed in helping clients navigate their tax journey.
- IRS Free File: The IRS offers a program called Free File where certain taxpayers can access free tax preparation software from partner companies.
The Power of E-Filing
No matter which filing option you choose, we highly recommend e-filing your return electronically. E-filing is not only secure but also significantly faster than mailing a paper return. Faster processing typically translates to a quicker turnaround time for your refund!
Tax Payment Options
While most people receive refunds, there are situations where you might owe taxes. If that’s the case, the IRS offers various payment options, including electronic payments directly from your bank account, debit card payments, or mailing a check.
Choosing the Right Path
The best filing option for you depends on your individual tax situation. For a simple return, tax software might suffice. However, if you have a complex situation or professional guidance, consider partnering with ATC Income Tax Services. We’ll work with you to ensure an accurate return and a stress-free filing experience.
When to Expect Your Refund?
The processing timeline for your refund depends on the filing method you choose:
E-Filed Returns
The IRS generally processes e-filed returns much faster. In most cases, the IRS acknowledges receipt of your return within 24 hours and aims to issue your refund within less than 21 days if there are no issues.
Paper Returns
The IRS receives a much higher volume of paper returns, so processing times can be significantly longer. It can take around four weeks or more for the IRS to process a paper return and issue your refund.
Tracking Your Refund Once You’ve Filed
You’ve filed your return, hit submit, and now the waiting game begins! But fear not. There are ways to track your refund and ease the anxiety. Here, we’ll discuss two options for monitoring your refund status:
Introducing the ATC Refund Status Checker
At ATC Income Tax, we understand the importance of staying informed about your refund. That’s why we offer a convenient tool called the “ATC Refund Status Checker.” This secure online portal allows you to easily track the progress of your refund in real-time.
Benefits of the ATC Refund Status Checker
- Convenience: Access your refund status anytime, anywhere, from any internet-connected device.
- Real-Time Updates: Unlike the IRS tool, the ATC Refund Status Checker provides up-to-the-minute updates on your refund’s progress, allowing you to stay informed every step of the way.
- Security: We take data security seriously. The tool utilizes robust security measures to protect your sensitive information.
Using the ATC Status Checker
One reason that most clients prefer to use the ATC Refund Status checker rather than other tools is because it’s really simple. Here’s what you need to do to check your tax refund status after filing your taxes with us.
Just head over to the ATC Refund Status Checker and enter the following information:
- Last Name
- Date of Birth
- Social Security Number
Please Note: The ATC Refund Status Checker is only accessible to clients who used ATC Income Tax to file their taxes.
Alternative: IRS “Where’s My Refund?” Tool
The IRS also offers a tool called “Where’s My Refund?” to track your refund status, but there are some key differences compared to the ATC Status Checker.
- Update Frequency: The IRS tool typically updates once daily, meaning you might not see the latest information right away.
- Limited Information: While the IRS tool provides a general status update, it might not offer the same level of detail as the ATC Status Checker.
How to Use the IRS Tool
The IRS “Where’s My Refund?” tool requires the following information to access your refund status:
- Social Security Number (SSN)
- Filing Status (Single, Married, Filing Jointly, etc.)
- Estimated Refund Amount
The ATC Advantage
While the IRS tool offers a basic tracking option, the ATC Status Checker provides a more comprehensive and user-friendly experience. It can be hard to remember these details, which is why the ATC Refund Status checker could prove to be a better option for those who don’t want to remember a lot of numbers.
For clients of ATC Income Tax, the ATC Status Checker is undoubtedly the preferred method for real-time updates and a stress-free refund tracking experience.
Common Questions People Have About the ATC Refund Status Checker
Filing your taxes and waiting for the tax refund can be stressful. The ATC Refund Status Checker is here to help ease some of that anxiety by providing real-time updates on the progress of your return. However, you might encounter some questions along the way. Here are some commonly asked questions and answers about the ATC Refund Status Checker:
1. Why Am I Getting A “Return Not Found” Message?
This message can appear for a few reasons:
a. Missing Documentation
The ATC team might require additional documents from you to complete your tax return processing.
b. Unfinished Return
You may have started filing your taxes with ATC but haven’t completed and submitted the return.
c. Paper Return
The ATC Refund Status Checker is only for e-filed returns. If you filed a paper return with the IRS, you’ll need to use the IRS “Where’s My Refund?” tool to track its status.
For the first two scenarios, visit your local ATC Tax Office to finalize the processing of your return and ensure it gets submitted electronically.
2. Why Hasn’t My Refund Status Changed?
There are a couple of things to consider:
- Processing Time: If you’ve checked your status after the IRS opening date (typically late January), allow at least one business day for the IRS to acknowledge receipt of your return. Once acknowledged (“A” status), it can take up to 21 days for the IRS to process and release your refund.
3. Why is My Refund Delayed If I Claimed EIC Or Child Tax Credit?
The PATH Act mandates that the IRS hold refunds claiming the Earned Income Tax Credit (EIC) or Additional Child Tax Credit until at least February 15th. This applies even if your return has already been acknowledged (“A”).
However, if your return was acknowledged after February 15th, you can expect your refund within 21 days of that acknowledgment date.
4. It’s Been Over 21 Days – Why Haven’t I Received My Refund?
The IRS has up to 21 days to process and release your refund from the acknowledgment date (“A”). However, there could be a few reasons for a delay beyond that timeframe:
- Technical Issues: Technical problems at the IRS processing center could hold up your return.
- Review: Your return might be selected for additional review by the IRS.
5. What Should I Do If My Refund Is Delayed?
If you haven’t received your refund after more than 21 days, contact the IRS directly at 1-800-289-1040 for further information on the reason for the delay.
6. Do I Still Need To Check The IRS “Where’s My Refund?” Tool?
While the ATC Refund Status Checker provides a faster update on your return’s acknowledgment, the IRS tool can offer additional information once your return is processed by the IRS. Here’s a breakdown of the functionalities:
- ATC Refund Status Checker: Provides an earlier acknowledgment confirmation and updates on the progress of your return within the ATC system (including funding by the IRS). It won’t provide an estimated deposit date, but it will show when the IRS has released the funds.
- IRS “Where’s My Refund?” Tool: Offers information on the general status of your federal refund but might take a few days to update after your return is acknowledged. It won’t show the status of any state refunds.
7. Will Direct Deposit Speed Up My Refund?
Absolutely! Choosing direct deposit is significantly faster than receiving a paper check mailed to your address.
Here’s a breakdown of how it works with ATC:
- Direct Deposit through ATC’s Bank Partner: If you opt for direct deposit through ATC’s partnered bank, your account will receive the refund on the same day the IRS transmits the funds. It might take an additional 24-48 hours for the funds to appear in your account.
- Faster Money Card: Choosing the Faster Money Card option allows you to access the funds on the same day the IRS transmits them to ATC’s bank.
I Can’t Wait 21 Days! How Can I Get My Refund Faster?
If you haven’t filed your taxes yet, consider an ATC tax-related loan product like the EasyMoney Loan or ATC Bonus to access an advance on your anticipated refund on the same day. However, if you’ve already filed without applying for a loan, you’ll need to wait.
Final Note on Tax Refund
Filing your taxes and waiting can feel overwhelming, but with the right information and tools, you can navigate the process with ease. This guide has equipped you with everything you need to know about tax refunds, from understanding how they work to the different ways to track their status. Remember, filing on time is crucial, even if you expect a refund.
For a stress-free filing experience and real-time updates on your refund, consider partnering with ATC Income Tax. We’ll ensure your return is filed accurately and efficiently, maximizing your refund potential.
