The most dreaded time of the year is upon us .. TAX SEASON!!!
Even though we all hate doing our taxes, its one of those realities of life that we cannot avoid. But not everything is bad about the tax season. I’m sure you’ll agree with me on this about what’s the best part about filing taxes?
The average tax refund for taxpayers in every state is constantly changing. In 2014, the average tax refund was $3,116, that figure dropped to $2800 in 2015. Thanks to a booming economy, in 2016 the average tax refund per state is expected to be $2900.
When to Expect Your Tax Refund?
Since the 2016 tax season opened on January 19, the Internal Revenue Service (IRS) has tried to buy itself some more time by not publishing a precise 2016 refund schedule for taxpayers. Interestingly, you can draw up an estimate based on previously published IRS tables and its present guidelines.
The IRS takes pride in its claim of being able to issue 9 out of 10 refunds within less than 21 days for e-filers. But the IRS warns that in some events, your tax refund could require unexpected reviews so they may require more time to process it.
If you use e-file and requested that your refund be directly deposited into your bank account, you can get it within 6-8 days. But since the IRS says it will issue 9 out of 10 refunds in less than 21 days, you can get your refund in a week, two weeks or in three weeks time.
But if you pick the direct bank deposit option, you may have to add one week more to the 21 days to get a paper check mailed to you. Also, if you filed for a return by mail, your refund can take between 4 to 6 weeks from the date the IRS receives your accurate and complete refund.
Average Tax Refund By State
Here is the expected average tax refund by states according to Business Insider.
How To Make Your Tax Refund Quicker
To make your tax refund quicker, the IRS suggests you do two things. Here the are:
- Use electronic filing to guarantee a quicker processing and to avoid some of the errors that cause delays.
- Pick the option of having your refund directly deposited into your bank account can save the time of issuing a paper check and the delivery time to your mail.
How To Check The Status Of Your Tax Refund
If you e-file your tax return, you can use the IRS Where’s My Refund? Online tool to check the status of your refund within 24 hours after filing. But paper filers have to wait for for weeks before checking the status of their tax refund.
To check the status of your refund, you’ll be required to provide your Social security number, filing status and the exact refund amount of your expected refund. The IRS only update its site once in a day, usually overnight. So you don’t have to bother about checking the site all day long.
You should call the IRS, if you filed electronically and it has been 21 days or more and you’re yet to get your refund. Also, if you mailed a paper tax return and you’re yet to get any response in more than 6 weeks, don’t hesitate to call the IRS. You can call too if the Where’s My Refund? tool directs you to do so.
Also, you can check the status of your refund using the IRS2Go mobile app for Android devices and iOS devices.
The 3 Status of Tax Refunds
Once the IRS receives your complete and accurate tax return, it will process the return in 3 different stages. You can monitor the progress of your tax refund on Where’s My Refund? an online tool on IRS website.
Status 1: Return Received
The status bar one is the same as “Return Accepted by The IRS.” This indicates that your tax return has gone through the initial screening including SSN verification, fraud checks and to make sure there are no red flags on your return.
In order to ensure that your return is compliant and the refund amount is accurate, your return will remain in the “Return Received” status while the IRS carry out further checks on it. If the IRS requires more details or information to process your return, it may remain in this status for a while. But since the IRS says it can process 9 out of 10 returns within 21 days, you don’t have to panic if your status remain in this stage for a while.
Status 2: Refund Approved
If your tax return passed all IRS requirements and has been approved for payment by check or direct deposit, “Refund Approved” will appear on your status bar. If you picked the direct deposit (DD) option for payment, the IRS will provide a personalized refund date. While you may expect your return within the 21 days period, your return may take a longer period if it is flagged for further review.
Status 3: Refund Sent
Once you see “Refund Sent” on your status bar, it indicates that the IRS has sent your refund to the deposit option you picked. IRS will indicate a specific date your refund was sent. If you picked the direct deposit (DD) payment option, your cash will be available in your bank account within 5 days of the Refund Sent date.
But if you picked the paper check option, Request Sent indicates that your payment has been mailed and it could take up to 7 days or more for you to get it. But if your mailing address is outside the United States, it could take weeks for you to receive it.
If you moved within the last 12 months, you may qualify for moving tax deduction. Don’t forget to claim your moving expenses when you file your taxes. Find out if your moving tax is deductible? But if you’re planning to move anytime this year, let MoverJunction.com connect you to licensed moving companies so you can get up to 6 free moving quotes.