Who doesn’t love getting a tax refund? But when it feels like too much time has gone by without hearing from the IRS, a lot of us start grumbling, Why is my tax refund taking so long? Abbie Eisenkraft, EA, CEO of New York–based Choice Tax Solutions, takes us through the most common delayed-tax-fund reasons…how to check your tax refund status…and how to avoid an IRS refund delay in the future.
“A lot of people think they deserve refunds even if they haven’t paid any attention to their withholding,” Eisenkraft says. “You get money back only if you’ve overpaid.”
For those who do have refunds coming to them, this chunk of change can comprise a significant part of their financial lives. “People use those refunds to pay bills…go on vacations…fund an IRA. And for some people, it’s a way to save money because they don’t have the discipline to do it any other way.” With so much riding on the windfall, it can be excruciating when the IRS processing time seems excessive.
How Long Does It Usually Take to Get a Tax Refund?
That will depend on whether your tax return is paper or e-filed. According to the IRS, most refunds are issued within 21 days if you e-file but at least twice that if you file on paper. This typically is true even during peak season, but certain special circumstances, such as claiming newly legislated tax credits, can make for slower processing times.
Common Reasons Your Tax Refund Is Delayed
If your refund appears to be held up, there are several possible explanations…
Errors or missing information on your return
During tax season, Eisenkraft says, “Everybody’s tired. You start transposing numbers. Sometimes taxpayers are using a name that’s not on their Social Security card because they never changed it when they got married or divorced. Those things are all holdups. If what’s on your W2 or 1099 doesn’t match up with what’s in the IRS records, it’s going to trigger a manual review…and anything manual is going to take time.”
Claiming certain tax credits
If you’re claiming child tax credits or the Earned Income Tax Credit (EITC), delay of your refund is a real possibility. “By law, the IRS doesn’t release funds for these types of credits until mid-February,” Eisenkraft says. And tax breaks related to newly passed legislation can also slow the works.
IRS review, audit or refund freeze
If your return has been flagged for compliance reasons, don’t expect a refund until your case has been reviewed and settled.
Identity verification or suspected identity theft
When it comes to identity verification, IRS systems are becoming more complex, and this is an increasingly common reason that a refund might be taking longer than usual. “The IRS has more anti-fraud filters than it used to have,” Eisenkraft explains. If your identity comes under question, you’ll get a notice to which you must respond before the return can continue to be processed. This is in stark contrast to how things used to work, when the IRS would accept whatever got sent in… issue a refund…and only later send out notices or perform audits for red flags.
Outstanding debts or refund offsets
If you owe the IRS money for past years, that will definitely hold up your refund. You also could have a freeze or refund offset for failure to pay past child support or if you failed to file in past years.
Bank-account or direct-deposit issues
“Taxing authorities are moving away from paper checks,” says Eisenkraft. That means that if you haven’t included correct bank-account information on your return, the IRS won’t be able to send you your money. When that happens, “The IRS will freeze that refund for potentially another six weeks to allow the taxpayer to update their banking details.” The banking information must be updated online—you cannot provide it over the phone. Sometimes taxpayers get caught up in a blame game in which they receive what they know to be an erroneous notice and, after telling the IRS as much, they receive a reply that the fault must belong with the bank. The poor taxpayer goes to the bank for help, and the bank confirms that the problem is with the IRS. Such situations can result in maddening delays.
IRS staffing and backlogs
“The taxing authorities are buried in volume now,” Eisenkraft says. The IRS has reported a decrease of about 30% in its staffing, which means fewer people available for manual reviews. And this comes at a time when some newly passed provisions of the One Big Beautiful Bill, such as no tax on overtime pay, require complex manual eligibility checking. With some backlog still holding over from the pandemic, it’s possible for certain identity-theft issues to take more than a year to sort out.
How to Check the Status of Your Tax Refund
“This part is very easy,” says Eisenkraft. “On all of the websites of the taxing authorities, there is a page called ‘Where’s My Refund?’” Go to IRS.gov, put in your taxpayer ID, and you can see whether your refund has been held up. You won’t always immediately see the reason why, but you can expect a letter that will give you an explanation. The “Where’s My Refund” tool updates daily, so there’s no need to check it every few hours.
What To Do If Your Refund Is Taking Too Long
Carefully take whatever steps you’re instructed to take to correct any tax return errors. Depending on the reason for the delay, you may simply be asked to correct a discrepancy or provide missing information. Always respond to IRS notices or requests for documentation in a timely and thorough way. If your return was prepared by a professional, go back to him/her for help responding. Occasionally, self-filers may want to approach a tax professional to help them through a situation that’s causing a delay.
To avoid scams: Confirm that the letter appears in your online account at IRS.gov…or call the IRS directly at 800-829-1040. If the letter demands gift cards, prepaid cards or wire transfers, it is from a scammer.
Tips to Avoid Future Refund Delays
If getting that refund money into your account ASAP matters a lot, then file early and file electronically. Make absolutely certain that everything in your filing is correct. “A lot of people give me their bank account number as their routing number and vice versa,” Eisenkraft says. “So make sure the banking is right. Check your numbers. Make sure you use the name on your Social Security card.” As eager as you might be to get your return filed and get your refund rolling, says Eisenkraft, “You’ve got to give a little bit more time and energy to all that stuff.” A quicker refund will make the extra effort worthwhile.
