With the 2024 tax season officially wrapping up, many taxpayers can expect their refunds to be arriving soon, either through direct deposit or by mail. However, not everyone will receive a refund, and some may still be waiting for their payments to arrive. Here’s everything you need to know about who will be receiving refunds next week, why some people may be still waiting, and what you can do if you’re unsure about your refund status.
Who Receives a Tax Refund?
Tax refunds are issued to taxpayers who have paid more to the IRS than their actual tax liability. This overpayment usually occurs when employers withhold more tax than necessary from employees’ paychecks. Since this amount is based on estimates, it doesn’t always take into account deductions or credits the employee is eligible for.
If you’ve overpaid your taxes, you’ll receive a refund. However, it’s essential to file your income tax return each year to prove to the IRS that you are owed money.
Fastest Way to Receive Your Refund
For those who filed their taxes and are expecting a refund, the fastest way to receive it is by opting for direct deposit and using the e-filing system. The IRS has noted that the number of taxpayers choosing e-filing has increased by 10% over last year, highlighting the trend toward using online services for tax-related activities.
Who Will Receive a $3,000 Payment Next Week?
According to the IRS’s official May 9 statistics, the average refund amount this year is $2,939. Most taxpayers who are owed refunds have already received them by now, especially since the tax deadline was mid-April. However, some individuals may still be in the process of receiving theirs.
There are several reasons refunds may be delayed, such as:
- Additional tax credits you’re eligible for, which require verification.
- Opting to receive a check by mail (which takes longer than direct deposit).
Here are some rough estimates for how long it takes for refunds to be processed and distributed, depending on how you filed:
- Electronic filing and direct deposit: 1 to 3 weeks.
- Electronic submission and check: about 1 month.
- Statement by mail and direct deposit: around 3 weeks.
- Statement by mail and check: up to 2 months.
If you filed your return by mail close to the tax deadline and opted to receive your refund by check, you may be receiving it soon, as the two-month estimate is nearly up. If you’re unsure about your refund status, you can use the IRS Where’s My Refund? tool to get an update.
Who Won’t Be Receiving a Refund?
If you’ve filed your taxes and your refund is overdue, there are several reasons the IRS might withhold it:
- Defaulted federal student loans: The IRS may withhold your refund to pay back the loan.
- Unpaid child support: If you owe back child support, the IRS can use your refund to settle that debt.
- Unpaid state income tax: Similarly, if you have outstanding state taxes, your federal refund could be withheld.
What to Do if You’re Waiting for Your Refund
If you believe you’re owed a refund but it hasn’t arrived yet, it’s important to contact the IRS. The IRS can provide information about your refund status and any reasons for delays.
Additionally, if you owe money to a federal entity, such as for student loans or child support, you may want to contact the U.S. Department of the Treasury’s Bureau of the Fiscal Service (BFS) to work out a repayment plan. The IRS encourages taxpayers to reach out as soon as possible to avoid penalties and interest for failing to pay, and to ensure you don’t face more serious consequences.
In Summary
While most people who are owed a refund have already received it, some taxpayers may still be waiting, especially if they opted for paper checks or qualify for additional credits that require verification. If you’re waiting on your refund or are concerned about your tax status, be sure to use the IRS’s Where’s My Refund? tool or reach out to the IRS directly. It’s essential to stay informed and proactive to avoid any unnecessary delays.
Have you received your refund yet? What’s your experience been like this year? Let us know in the comments below.