How Long is the Tax Refund to Show in the Bank? IRS Deposit Timeline Explained
Filing season is one of the most stressful times of the year. Out of all the processes involved in the filing of returns, receiving an IRS tax refund is the most exciting aspect. However, even after all this time, I have to wonder, where is the refund? When does the IRS payment land in the account? Is this timeframe different for both direct deposits and cheques? What other aspects do I have to consider? Do I have to consider multiple reasons?
Direct Deposit vs. Check Refunds
86% of Americans do not have physical, paper checks. For the other 14% of the population, direct deposits are faster, safer, and more convenient. Even in this day and age, direct deposits must be the payment option for the IRS, even in the case of a direct deposit malfunction.
Once the tax refund is approved, payment via direct deposit is faster and more convenient. Payment for a tax refund takes on average, 30% more time in cataloguing, processing, and depositing the payment. Payment via IRS Payment Release is visible in the account 1-3 days and the IRS payment checks 3-7 business days.
Physical checks take the longest of all payment methods. 95% of checks take more than 3-7 business days, whilst 30% of checks take more than 3 weeks. USPS and payment processing times contribute to the delay.
Factors That May Affect Timing
After an approval of a tax refund, several factors can affect when the money will be available:
Bank Processing Times: Deposits may take anywhere from a few hours to several days depending on the policies of the financial institution.
Federal Holidays Reduction: Deposits are not active on the weekends. Federal Holidays may also be a break.
Account Information: A bank refund could be delayed, suspended or forwarded to a different account altogether. This could be the result of submitting an account or routing number. This often results in the IRS sending a physical check instead.
How to Track Your Refund
The IRS provides tools to taxpayers so they will not be left in the dark:
“Where’s My Refund?” Tool: This tool can be accessed on the IRS online web page. It allows the user to view the status of their tax return, based on the social security, filing status, and number of refunds.
IRS2Go Mobile App: The same information has been simplified to an app form.
Users can expect to see updates once a day, which is often rolled out overnight.
What to Do If It’s Delayed
With instant electronic filing and banking, most refunds are disbursed right on time. However, if your response is delayed, here are the next steps you should take:
Give the IRS 21 days after e-filing your return: They advise you to hold off on any inquiries during that time. While most refunds are disbursed before that, the IRS asks taxpayers to allow that time frame.
Make sure that the banking details that you filled in are correct and that there was no mistake made while filing your return.
Only reach out to the IRS if the tool says “Where’s My Refund?” to you. Also, if it is more than 21 days, and there has been no movement on your case, you should reach out.
And, if you are wondering when your tax refund will hit your bank account, contact Dimov Associates today for expert tax guidance and personalized support.
FAQs
How long does it take for a tax refund to show in the bank after being approved?
Why is my refund approved but not deposited?
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