TAX season is in full swing with the Internal Revenue Service estimating that 140 million Americans will file taxes this year.
While most refunds are issued promptly, tax experts have revealed certain factors that could cause delays - along with a key tip to help avoid a common error and subsequent setbacks.
Although the task of filing your taxes can be frustrating and time-consuming, most taxpayers look forward to receiving their tax refunds.
However, there are a variety of factors that can impact how quickly you can expect to receive your refund.
To answer your pressing questions on the matter, The U.S. Sun spoke exclusively with three tax professionals.
Several factors impact how quickly taxpayers will receive their refunds, including how early they filed their taxes.
Depending on when you filed your return, you can expect to receive your federal tax refund via check or direct deposit within 10 to 21 days.
State tax refund times vary more widely, often taking between 14 and 28 days, noted Jackie Perlman, tax law analyst and CPA.
Another factor that impacts the speed of your refund is whether your return was e-filed or sent by mail, as returns filed electronically are generally processed much quicker.
Taxpayers with multiple forms of income, certain assets, or those claiming certain credits, such as the Earned Income Tax Credit or Child Tax Credit, may need to wait longer to see their refunds.
Perlman noted that returns flagged for additional review by the IRS or state tax authorities can slow down the refund processing, and in rare cases, take up to several months.
There are several common reasons why your tax refund could be delayed.
One main factor that Perlman cited was errors in the tax return, such as incorrect Social Security numbers, mismatched income statements, or missing forms.
Preparation is key for preventing these simple errors, according to Paul Miller, a CPA with over 30 years in the accounting industry.
"Make sure you're prepared and compare all of your documents to your prior year's return. Work with your CPA, who can verify that all of your information is accurate," said the expert.
He added that your CPA will be able to pull your wage and income transcripts from the IRS and compare what they have versus what you have.
Another potential factor that may delay your refund includes concerns related to identity theft and the need for additional verification of the taxpayer's information.
Additionally, claims with an Earned Income Tax Credit, Child Tax Credit, Form 8379, or Injured Spouse Allocation PDF can take longer to process.
The time it takes for the taxpayer's bank or building society to process and deposit the refund into their account can also delay their tax refund.
President Donald Trump's hiring freeze at the IRS has stirred up concerns among Americans that their refunds will be delayed.
"This memorandum shall remain in effect for the IRS until the Secretary of the Treasury, in consultation with the Director of OMB and the Administrator of USDS, determines that it is in the national interest to lift the freeze," reads the executive order signed on January 20.
On top of the hiring freeze, up to 15,000 recently hired IRS employees may be laid off as soon as this week.
The workers are mainly in lower-level roles such as taxpayer response, phone centers, and junior audit roles.
The IRS has around 90,000 full-time employees and would lose around 17% of its workforce if the layoffs go through.
Although the workers do not have jobs directly related to processing tax filings, all these shifts at the IRS have raised questions about whether the processing time for refunds will be impacted.
Chris Rivera, CPA and founder of The Ecommerce Accountants, told The U.S. Sun that IRS staffing shortages or budget cuts could slow tax refund processing times in multiple ways.
He noted that fewer available agents could result in delays in reviewing returns, especially ones flagged for additional verification.
"Reduced resources could also impact the IRS's ability to upgrade or maintain its processing systems, further contributing to backlogs. Additionally, customer service response times could suffer, making it harder for taxpayers to get answers about their refunds," he said.
On the other hand, Miller anticipates minimal impact on tax refund processing times, arguing that refunds are already unreliable.
He shared that he has a client still waiting on a refund from their 2020 tax return.
The CPA also pointed to the Department of Government Efficiency, led by Elon Musk, sharing that the introduction of AI could improve the refund process by implementing a better computer system.
Remember that federal income tax returns for 2024 face a filing deadline of April 15, 2025. Those living overseas have a deadline of June 16, 2025.
As Americans scramble to submit their returns by the deadline, experts have warned that Americans are losing out on an extra $5,000 on their returns by overlooking an important option when filing.