Once you’ve handled the irritating task of filing your annual taxes, it’s time to start thinking about your refund. If you’re expecting a tax refund in 2020, you’re likely wondering when you’re going to receive your refund.
The problem is the rules have changed regarding tax refunds, and when exactly you receive your refund depends on a variety of factors.
So here’s what you need to know about getting your Federal tax refund this coming year.
When Can I Expect My Refund to Appear in My Bank Account?
This is the number one question on every taxpayer’s mind is when will the money appear in their bank account.
The first factor involved is the way in which you file your tax return. For the fastest processing time, use the e-file system and make sure you select ‘direct deposit’ as your refund payment method of choice.
If you file your taxes by April 15th, 2020, the IRS claims you’ll receive your refund within 21 days, in most cases. So you’ll only have to wait around three weeks to find your money in your bank account. However, keep in mind, this doesn’t consider how long your bank takes to process the deposit.
If you insist on filing a paper tax return, or you want a check from the IRS, expect to wait longer. Opting for this method of receiving your refund could mean waiting up to two months to obtain your refund.
What if I’m Claiming the EITC or ACTC Credits?
The Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC) change things, however. Due to new laws passed by Congress, the IRS must hold refunds if you’re claiming these tax credits until at least February 15th. This is designed to cut down on fraud.
If you’re claiming these two credits and there are issues with your tax return, your refund could take even longer.
Can I Get a Status Report on My Tax Refund?
The IRS has provided a helpful tool to help taxpayers figure out where their tax refund is. Just visit the IRS website, and you’ll find a section called Where’s My Refund?
Select this tool and then follow the on-screen instructions. You’ll need to enter a few pieces of personal information, such as your filing status and your Social Security Number (SSN). You’ll also need to know the exact dollar amount of your expected refund, so make sure you have this information ready and available.
The status of your return can appear as early as 24 hours after submitting it through e-file. For paper returns, it could take four weeks to get a status update.
You may also use this tool through the IRS’s mobile app IRS2Go.
Finally, if you’re desperate to get your tax refund as soon as possible to cover your expenses, consider making alterations to your tax withholding. Changing how much tax is taken out of your salary by your employer can enable you to reduce your refund the following year but have more money in your pocket now.
You’ll need to talk to your employer to find out more about altering your tax withholding rate.