While the 2024 tax season has come to an end, the Internal Revenue Service (IRS) is still in the process of releasing tax refunds to taxpayers. With the deadline to file your taxes now being two months past, most individuals should have already had their taxes filed, processed, and a refund deposited if necessary. However, depending on the method you used to file your taxes, how you chose to have your refund deposited, if you filed your taxes late, and if your taxes are more complicated than the average taxpayer, your refund may still be on its way and could come at this date.
Who qualifies for a tax refund?
Tax refunds are issued by the IRS when you overpay your tax liability. For most taxpayers, when it comes to paying taxes, your employer withholds a certain amount of your income on your behalf and pays it to the IRS. However, your employer does not take into consideration any tax rebates or credits you may be eligible for. Thus, when filing season comes around, you can claim back some of this income from the IRS.
Approximately two-thirds of taxpayers are issued a refund each year. Freelancers and self-employed people often get issued tax refunds because they need to make estimated quarterly tax payments to the IRS. Because self-employed individuals’ incomes fluctuate throughout the year, your estimation of what you owe the IRS may be lower in reality.
Who will receive a $2,939 refund?
For this week, if you have not been issued your refund yet, you may expect to see it if the following applies to you:
- You filed your returns anytime during May
- You chose to have your refund distributed to you through the mail instead of a direct deposit
Tax refunds deposited through the mail can take up to six weeks to reach taxpayers. Further, it is important to note that if you did file your taxes during this time, your refund amount may be lowered, as you most likely will be subject to late penalties, as the deadline to file and pay your taxes was April 15. If you have not been issued a refund yet, you can use the IRS’s ‘Where’s My Refund?’ tool to check to see your refund status.
According to the IRS official April 25 statistics, the average refund for taxpayers this year is $2,939. However, while some taxpayers may be receiving this amount this week, it is important to keep in mind that average refund statistics can be heavily skewed by the higher-earners’ refunds. You should therefore prepare to receive a refund, which is much lower than this average statistic.
Why is my refund being withheld?
Sometimes, even if you qualify for a refund, the IRS will withhold this amount. This can be for a variety of reasons, but it is usually due to you owing federal or state entities money. For example, if you have paid your federal income tax but not your state income tax, the IRS may withhold your refund to use it to pay the tax that you owe your state.
Other reasons why your refund may be withheld are if you owe child or spousal support, which has not been paid. In this instance, a judge may have the authority for your refund to not be distributed to you until you pay this amount. If you have defaulted on your federal student loan repayments, the IRS may also withhold your refund in this instance to pay off the debt that you have defaulted on. If you are still unsure as to why your refund is being withheld, contact the IRS directly for support.
Disclaimer: This article is for informational purposes only and does not constitute tax advice. It does not replace IRS guidance or official notices. To confirm your eligibility or payment status, click the IRS‑linked resources in our article or log in to your IRS online account; for personalized advice, consult a qualified tax professional.
