Question 1

How soon after I file my return can I get my refund?

Accepted Answer

If you file electronically and choose direct deposit for your refund, it will typically show up in your bank account in about 21 days, according to the IRS. If you mail your return, it can take four weeks or more to get your refund.

Question 2

Where can I check on the status of my refund?

Accepted Answer

The timing depends on how you file, but there are multiple tools to help you access the information. You can download the IRS2Go app to check your refund status or call 800-829-1954 for an automated update. You can also speak with a representative by calling 800-829-1040. You can also use the Where’s My Refund? tool at irs.gov/refunds to check the status of your refund 24 hours after e-filing. It can take four weeks or more if you mailed your return to see information on your refund status. Thanks to the extra funding the agency received from the Inflation Reduction Act, the IRS has reported improvements to the Where’s My Refund? feature. The enhancements provide the following information:

Question 3

Why is my refund taking so long to arrive?

Accepted Answer

Your refund may be delayed because there’s an error or missing information, or because the IRS has pulled it for extra review. The latter could happen if you claimed the child tax credit or an earned income tax credit. Your return may also have been flagged because of identity theft. Someone may have stolen your personal information and filed a fraudulent return in your name to collect a bogus refund. If there’s a problem, you should receive a letter from the agency.

Question 4

Can I buy savings bonds with my refund?

Accepted Answer

You can choose to buy up to $5,000 in U.S. Series I Savings Bonds in a calendar year using your refund. Series I savings bonds are designed for inflation protection. The current rate is 5.27 percent for I bonds issued from Nov. 1, 2023, to April 30. There are two components to the return for the bond — the fixed rate and the inflation rate. The fixed rate, which right now is 1.30 percent, stays the same for the life of the bond. The inflation rate changes every six months. The fixed rate of return and the semiannual inflation rate are announced by the Treasury Department each May and November. You can use all or part of your tax refund to purchase I bonds. Your request for bonds must be in increments of $50, and you buy them at face value, meaning if you pay $50 using your refund, you get a $50 savings bond. Upon purchase, you’ll be issued paper bond certificates. If you’re married and filed a joint return, the bonds will be issued in both your names.

Question 5

Can I deposit my refund into more than one bank account?

Accepted Answer

You can split a refund and have it sent to as many as three different U.S. financial institutions. Your refund can be directly deposited into a checking or savings account. If filing electronically, follow the tax software instructions. Use IRS Form 8888 if you choose to buy U.S. Savings Bonds or you’re splitting your refund to deposit in more than one account. You don’t need Form 8888 if you want the IRS to deposit your refund in one account.

Question 6

Why do people keep saying I shouldn’t be excited about getting a refund?

Accepted Answer

You might get a substantial refund if you’re eligible for certain tax breaks, such as the refundable earned income tax credit. Some credits are refundable, which means you get money back even if you don’t owe any tax. But many people intentionally have their employer withhold too much money so that they can get a large refund — year after year. Or they use their refunds as a forced savings plan. More than a quarter of Americans (28 percent) expecting a refund plan to use most or all of the money to increase their savings, according to a new survey by Bankrate.com. However, there are good reasons to adjust your withholdings so that you either just get a tiny refund or owe a tiny amount, rather than get a five-figure refund. Your money could be earning interest in a high yield savings account or a higher return in an investment account. Moreover, although inflation is coming down, prices are still higher for a lot of consumer goods. Could you use the money to help pay for day-to-day expenses? Many taxpayers wait to get a refund to pay off debt. It was the second most cited use, according to Bankrate. Something to keep in mind: The cost of credit card debt has spiked. The average rate for accounts on which interest is assessed was 22.75 percent in November 2023, according to the Federal Reserve. Now is the time to fill out a new W-4 form so your employer doesn’t withhold too much or too little. You can use the Tax Withholding Estimator at irs.gov to help estimate the amount of income tax your employer should withhold from your pay. Bottom line: Unless you qualify for certain refundable tax credits or have a change in your tax situation — bought a home, had a baby or got married — Uncle Sam isn’t sending you “new” money. He’s sending back money that you’ve given the government as an interest-free loan.

Why you shouldn’t get too excited about that tax refund