Ready for your tax refund? You’re not alone! Close to 75% of taxpayers received a federal tax refund close to $2,800 last year!
TurboTax is now accepting tax returns, which means you’re one step closer to receiving your maximum tax refund. The IRS began accepting e-filed tax returns on January 23– but what happens afterward? We have the scoop on what you need to expect when you’re expecting a federal tax refund:
- Start checking status 24 – 48 hours after IRS receives e-file: Once the IRS receives your e-filed tax return, you can use the IRS Where’s My Refund? tool to track your federal tax refund status. The tool will show “Return Received” once the IRS has begun processing your tax return. Keep in mind: you will not see a refund date until the IRS finishes processing and approves your tax refund.
- Status change to “Refund Approved”: Once the IRS finishes processing your tax return and confirms your tax return is approved, your status will change from “Return Received” to “Refund Approved.” Sometimes the change in status can take a few days, but it could take longer – so check back and be patient. The IRS will provide a personalized refund date once your status moves to “Refund Approved.” *The IRS expects to issue 9 out of 10 federal tax refunds within 21 days of acceptance if you e-file with direct deposit.
- Status change to “Refund Sent”: Once the status in Where’s My Refund? shows “Refund Sent”, the IRS has sent your tax refund to your financial institution for direct deposit. It can take up to five days for your bank to deposit funds into your account. If you requested that your tax refund be mailed, it could take several weeks for your check to arrive.
Eight in 10 taxpayers get their refunds faster by using e-file with direct deposit. E-file with direct deposit is the fastest way to get your tax refund. If you mailed a paper tax return, you can start checking the status of your tax refund about four weeks after sending.
*The Protecting Americans from Tax Hikes (PATH) Act, signed into law in December 2015, requires the IRS to hold tax refunds that include Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC) until February 15, 2017, however most taxpayers will not be impacted by the change in the law. According to the IRS, taxpayers who claim the EITC or ACTC will likely see refunds the week of February 27.