It was a clunky tax season opening on January 28, 2019, with taxpayers grappling with new tax forms, new rules, and a government shutdown. While some 50 million taxpayers have yet to file (as of April 12, 2019), tens of millions have already filed and are eagerly awaiting their tax refunds. While they wait, taxpayers are often bombarded with bad information about what to expect. To help sort out the truth from the confusion, the Internal Revenue Service (IRS) has issued a list of refund-related myths:
Myth 1: Calling the IRS or a tax professional will provide a better refund date.
Put the phone down. You might have heard that calling the IRS or calling their tax professional is the best way to find out when they will get their tax refunds. It is not. Here’s what will really happen:
- You may stay on hold for a phenomenally long time; and
- Your tax professional will hate you (he or she is still trying to get returns out for other clients)
The fastest way to check on your refund is online through the Where’s My Refund? tool at IRS.gov or via the IRS2Go mobile app (you can find out more here). Those without access to the internet can call the IRS automated refund hotline at 800-829-1954.
When you go online or call, you’ll need your Social Security number, filing status and the amount of your anticipated refund. If you filed your return electronically, you can check your refund status within 24 hours after the IRS indicates receipt of your return. If you file a paper tax return, you’ll need to wait longer – usually about four weeks. There’s no need to check over and over throughout the day: records are only updated by IRS once per day, usually overnight.
Still itching to pick up the phone? You should only call the IRS tax help hotline to talk to a representative if it has been:
- 21 days or more since you e-filed your tax return;
- Six weeks or more since you mailed your tax return; or
- If Where’s My Refund? indicates that you should contact the IRS.
Myth 2: Ordering a tax transcript is a “secret way” to get a refund date.
It’s always fun when you find a life hack on the internet. Who knew that trick about how to best eat pineapple or the special method to clean your ceiling fan? But when it comes to taxes, don’t believe the hacks. Specifically, ordering a tax transcript will not help you find out exactly when you might get your refund. The information on a transcript does not necessarily reflect the amount or timing of a refund. While you can use a tax transcript to validate past income and tax filing status for mortgage, student, and small business loan applications and to help with tax preparation, you should use Where’s My Refund? to check the status of their refund. The codes that you’ll see on your tax transcripts do not offer additional information about when your refund will be issued.
Myth 3: Where’s My Refund? must be wrong because there’s no deposit date yet.
Not all tax returns are created equal. Even if you and your best friend filed at the same time and had relatively similar tax returns, there’s a chance that they won’t be processed at the same time. Even though the IRS issues most refunds in less than 21 days, it’s possible a refund may take longer for a variety of reasons including when a return is incomplete or needs further review.
And remember, updates to Where’s My Refund? are made once per day, usually overnight. This means that in some cases, a taxpayer who filed later may receive their refund sooner than someone who filed earlier in the season.
If you don’t see your deposit date just yet, don’t call. The IRS will reach out to you by mail (or signal on the Where’s My Refund? app) if it needs more information to process your tax return. See again Myth #1.
Myth 4: Where’s My Refund? must be wrong because the refund amount is less than expected.
Just because you think you know what your refund check will look like doesn’t mean that’s what will land in your bank account. According to the IRS, several factors that could cause your tax refund to be larger (or smaller) than expected, such as:
- Math errors or mistakes;
- Delinquent federal taxes;
- State taxes, child support, student loans or other delinquent federal non-tax obligations; and
- IRS holds a portion of the refund while it reviews an item claimed on the return.
If the IRS makes an adjustment on your return, they will mail a letter to you explaining the changes. You may also receive a letter from the Department of Treasury’s Bureau of the Fiscal Service if all or part of your refund was reduced and offset to pay certain financial obligations.
(For more on offsets that might affect your refund, click here.)
It’s also possible that your refund check could be affected by your spouse’s liability or obligation, such as child support. If that’s the case, you may be able to get the portion attributable to you by applying to the IRS for Injured Spouse Relief.
(To find out more about Injured Spouse Relief, click here.)
Finally, if you filed your taxes and requested a refund anticipation loan, fees and other deductions might apply to your refund check – not from the IRS, but from the loan originator or agency.
(For more about refund anticipation loans, click here.)
Myth 5: Getting a refund this year means there’s no need to adjust withholding for 2019.
Withholding was a huge tax topic this year following the Tax Cuts and Jobs Act (TCJA). But checking withholding is important every year, refund or not. IRS Commissioner Chuck Rettig says, “We urge people to check their withholding again this year to make sure they are having the right amount of tax withheld for 2019.”
(For more on form W-4, click here. For more on withholding, click here.)
And that’s it. There are no magic codes, keys or other tricks to getting your tax refund faster this tax season. The IRS encourages taxpayers who are expecting tax refunds to file as early as possible, using e-file and direct deposit. The IRS issues nine out of 10 tax refunds in less than 21 days.