Taxpayers who have already filed taxes are now wondering when they will see the payment of their tax refunds and credits reflected in their bank accounts, especially after the IRS warned about the slowdown in the processing of 1040 forms.
Nearly three-quarters of taxpayers received a tax refund last year, with an average payment of about $2,800, the IRS recently reported, a huge influx of money that countless households depend on. But this tax year presents more challenges due to advance payments of the Child Tax Credit.
HOW LONG WILL IT TAKE FOR THE IRS TO ISSUE MY REFUND PAYMENT AND TAX CREDITS?
Once you or your tax preparer files the return electronically, you will have to wait 24 to 48 hours for the IRS to accept it. That’s how long it usually takes the tax agency to verify your personal information to make sure it matches their records.
Once the return is accepted, your 1040 form will go into the IRS payment schedule.
Note that there is no exact time frame for the government to issue payments, but for reference, the IRS issued more than 9 out of 10 taxpayer refunds in less than 21 days last year. The same results are expected for 2021 as long as the declaration is made electronically, through direct deposit and there are no calculation errors.
You can use the Where’s My Refund? to verify the status of your payment, from 24 hours after the electronic presentation. The tax agency will provide you with an actual date of refund as soon as your tax return and refund are approved.
The fastest way to get a refund is by direct deposit. The IRS notes that eight out of 10 taxpayers get their refunds faster by using e-file and direct deposit. The agency expects about 90% of taxpayers to file their returns electronically this year. You can also choose direct deposit if you file your return on paper.
Please note that it may take a few more days for your bank to make the funds available to you after the refund is issued electronically.
HOW LONG WILL REIMBURSEMENTS TAKE FOR EITC AND ACTC CLAIMANTS?
If you claim the Earned Income Tax Credit or Additional Child Tax Credit on your tax return, the IRS won’t be able to issue a refund before mid-February. The IRS expects most EITC and ACTC refunds to be available in bank accounts by the first week of March if the taxpayer chooses direct deposit.
I CHOOSE NOT TO PARTICIPATE IN THE ADVANCE PAYMENTS OF THE CREDIT FOR CHILDREN IN 2021, HOW DO I CLAIM THE FULL SUM NOW?
If you chose not to receive advance payments before the first was disbursed in July of last year, it will likely be much easier to claim the credit on your tax return this year.
When you apply, simply confirm that you meet the criteria for the credit, and then claim the full amount you’re entitled to based on your 2021 income, the number of qualifying dependents, and their age.
The Child Credit offers up to $3,000 for children ages 6-17 as of December 31, 2021, and up to $3,600 for children under 5 as of December 31, 2021.
WHAT IS SCHEDULE 8812 AND WHY CAN AN ERROR DELAY MY REFUND AND CREDIT FOR CHILDREN?
If you received advance child credit payments, the IRS will send you Notice 6419, which lists the exact amounts you received from July through December.
Box 1 of the letter contains the “total amount of AdvCTC payments you received for 2021.”
That number is what you’ll need to enter on Schedule 8812 (the tax form for claiming credits for qualified children and dependents) on lines 14f or 15e, whichever applies to you. Those who file a joint return will have to add the amounts that appear in Box 1 of Notice 6419 that each one received on their Schedule 8812.
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We explain some of these benefits.
A second box on the letter will include the number of children the parents are claiming for the child tax credit.
Schedule 8812 specifically states online 14f: “Caution: If the amount on this line does not match the aggregate amounts reported to you (and your spouse if filing jointly) in your Notice(s) 6419, the processing of your return will be delayed .”
Taxpayers should make sure the full amount they received in advance payments is accurate when they file their tax returns.
If this information is not correct on the 2021 tax return, taxpayers risk waiting weeks before seeing their refund reflect in their bank account.
I RECENTLY MOVED AND I DON’T KNOW HOW TO NOTIFY THE IRS, WHAT SHOULD I DO?
Moving involves a series of paperwork and pending tasks, but there is one in particular that you cannot ignore: Immediately notify the IRS and the USPS about your change of address, especially if you received advance payments of the Child Tax Credit and you are waiting for Notice 6419 to claim the second part of your tax benefit.
If you don’t update your information with both agencies, you may not receive the documentation you need to file your taxes, including Form W2.
If you update just the USPS, not all post offices forward government checks, so it’s also important to notify the IRS.
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Even though your child credit payments were finalized in December and you didn’t have a direct deposit set up with the IRS, your payments were likely sent as paper checks. But if you didn’t get the payments even though you qualify for the money, an incorrect address could be the problem.
However, if you’ve recently moved and haven’t updated your information with the IRS or USPS, your money may have been sent to your old address, which could cause a delay while you wait for your check to be redirected to your new address.
On the other hand, if you are missing money from the third stimulus check or you did not receive it, the process to claim it is related to your tax return. If you receive a tax refund this year and don’t sign up for a direct deposit, you’ll receive your funds in the form of a paper US Treasury check, so it could go to your old address if you don’t update your information.
Tax season 2022: new forms, letters, and requirements
From this Monday you can now file your tax return.
But even if you have a direct deposit account on file with the government, you can still receive a stimulus check as a paper check or EIP card. Once the IRS processes the payment, the final say on how the money is received will rest with the tax agency and the Treasury.
You also need to make sure you get the letter from the IRS verifying when you sent the stimulus payment. This is important for anyone who qualifies for a check but experiences an unexpected delay in receiving the money. This IRS notice will be your ticket to resolve any errors or file a claim during this year’s filing season.
Tax season starts this Monday, January 24, and if you plan to move after you file your taxes, be sure to update your information in the system. This will prevent any errors or delays with your tax refund.
Keep in mind that it can take four to six weeks for the IRS to process your change of address.
If you don’t have access to the tax agency’s digital tools, you can call 1 (800) 829-3676 to speak with an IRS representative.
