Tax Season is Here: What You Need to Know
Get Ready to File: 140 Million Taxpayers Expected
The Internal Revenue Service (IRS) has officially kicked off tax season, with an estimated 140 million people expected to file their returns by April 15. To help taxpayers navigate the process, the IRS has introduced a new online tool to track the status of refunds.
Refund Timeline: What to Expect
If you file your tax return electronically, you can expect to receive your refund in 21 days or less. Opting for direct deposit will further expedite the process. However, if you file a paper return, it may take four weeks or more to receive your refund. The IRS advises against relying on a specific refund date when making major purchases or paying bills.
Tracking Your Refund: Where’s My Refund?
The IRS’s online tool, Where’s My Refund?, allows taxpayers to check the status of their income tax refund within 24 hours of e-filing and generally within four weeks of filing a paper return. To access your refund status, you’ll need:
- Your Social Security or individual taxpayer ID number (ITIN)
- Your filing status
- The refund amount calculated on your return
How Refunds Work: Understanding the Basics
If you’ve paid more in taxes throughout the year than you owe, you’re eligible for a refund. Additionally, you may qualify for a refundable credit, such as the Earned Income Tax Credit (EITC) or Child Tax Credit, even if you didn’t pay excess tax. To receive your refund, you must file a return, and you have three years to claim a tax refund.
Earned Income Tax Credit (EITC): Do You Qualify?
To qualify for the EITC, you must meet specific income and investment requirements. Use the online EITC Assistant tool to determine if your household qualifies based on your marital status and number of dependents.
Child Tax Credit: What You Need to Know
If you have a child, you’re likely eligible for the Child Tax Credit, which provides up to $2,000 per qualifying child. To qualify, your child must:
- Have a Social Security number
- Be under age 17 at the end of 2024
- Be claimed as a dependent on your tax return
What’s New This Year: Expanded Free Filing Options
The IRS has expanded its federal Direct File program, allowing taxpayers in 25 states to file their taxes directly with the agency for free. This program enables people with simple W-2s to calculate and submit their returns directly to the IRS, with over $90 million in refunds claimed in 2024.
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