With the 2024 tax season officially wrapping up, many taxpayers can soon start to expect to be receiving their refunds coming in either through direct deposit or through mail-in checks. However, it is important to remember that not everyone will receive a refund, as refunds are only issued if you have paid over your tax liability. While most taxpayers who are owed a refund have been paid by the Internal Revenue Service (IRS), a select few may still be receiving theirs this upcoming week.
Who receives a tax refund?
Tax refunds are issued to those taxpayers who pay the IRS more than their tax liability. It is for this reason that you need to file your income statements to the IRS each year so that you can prove to the IRS that you are owed a refund. Generally, the overpayment occurs when employers withhold more tax than they should from employees. This withheld amount is based on estimates and does not take into account all deductions and credits an employee may be eligible for.
The fastest way to receive a tax refund is if you opt for direct deposit for your refund payment, as well as if you used the e-filing system to file your taxes. Last year, the IRS saw a 10% increase in taxpayers opting to use the e-filing service over mail-in filing. This trend highlights how more people are migrating to online services to conduct their tax-related activities.
Who will receive a $3,000 payment next week?
This year, according to IRS official May 9 statistics, the average refund received by taxpayers has been just under $3,000– amounting to $2,939 exactly. While most taxpayers have, at this point, been issued a refund, seeing as the tax deadline was mid-April this year, some may still be in the process of being distributed to taxpayers. This could be the case if you opted for a mail-in deposit or if you have additional tax credits you are eligible to receive.
Generally, the income tax returns and refunds take longer to process and distribute for taxpayers who are eligible to receive tax credits, as the IRS has to verify this information. The method you used to file and which you chose to receive your refund will also affect your refund timeline as follows:
- Electronic filing and direct deposit: one to three weeks
- Electronic submission and cheque: one month
- Statement by mail and direct deposit: three weeks
- Statement by mail and check: two months
With these rough estimates in mind, if you submitted your returns by mail right around when the tax deadline was approaching in mid-April and opted to receive your refund through check in the mail, you may be receiving your refund next week, seeing as the two-month estimate is nearly up. If you are unsure whether you are still waiting on a refund or not, you can use the IRS Where’s My Refund? tool to confirm.
Who will not be receiving a refund?
If you have filed your returns and your expected refund date has well since past, and you are sure that you are owed a refund, there are a variety of reasons as to why the IRS has withheld it. If you have defaulted on your federal student loans, the IRS may withhold your refund amount to pay back the money you owe. Another reason could be if you owe child support and have not paid it, or if you have not paid your state income tax.
It is important to always contact the IRS regarding refund queries. If it turns out that you do owe money to a federal entity, you can contact the U.S. Department of the Treasury’s Bureau of the Fiscal Service (BFS) to work out a plan going forward with regards to paying off your debt. The IRS always encourages taxpayers to reach out as soon as possible if they find that they are in debt to the IRS in order to lower tax-related penalties for failing to pay as well as to avoid, at an extreme, being arrested.
