Debunking common myths about federal tax refunds
Once
people complete and file their tax return, many of them eagerly await any
refund they may be owed. Knowing fact from fiction can help manage expectations
as they wait for their money.
Myth: Calling
the IRS, a tax software provider or a tax professional will provide a more
accurate refund date.
Fact: The
best way to check the status of a refund is through the Where's My Refund? tool or the IRS2Go
app.
Taxpayers
can also call the automated refund hotline at 800-829-1954 to
get their refund status. This hotline has the same information about current
tax year refunds as Where's My Refund? There is no need to call the IRS unless
Where's My Refund? says to do so.
Myth: The
Where's My Refund? tool must be wrong if it hasn’t updated yet.
Fact: Where’s
My Refund has the most current information about refund status. It is updated
once a day, usually overnight. Even though the IRS issues most refunds within
21 days, it's possible a refund may take longer. If the
IRS needs more information to process a tax return, the agency will contact the
taxpayer by mail. Taxpayers should also consider the time it takes for banks to
post the refund to the taxpayer's account. People waiting for a refund in the
mail should allow extra time.
Myth: The
Where's My Refund? tool must be wrong because the refund amount is less than
expected.
Fact: There
are several factors that could cause a tax
refund to be less than expected. The IRS will mail the taxpayer a letter of
explanation if it adjusts a refund. Some taxpayers may also receive a letter
from the Department of Treasury's Bureau of the Fiscal Service if their refund
was reduced to offset certain financial obligations. Before calling, taxpayers
should wait for the letter to understand why the change occurred.
Myth: Getting a
refund this year means there's no need to adjust withholding for tax year 2024.
Fact: To
avoid a surprise next year, taxpayers should make changes now to their tax
withholding. The Tax Withholding Estimator tool
can help taxpayers determine if their employer is withholding the right amount.
Taxpayers can use the results from the Tax Withholding Estimator to complete a
new Form W-4, Employee's
Withholding Certificate and submit it to their employer
as soon as possible. Withholding takes place throughout the year, so it's
better to take this step as soon as possible.
