Are you waiting for your tax refund? Learn the most common myths and realities.
Once you file your tax return, it's normal to expect any refund you're owed. However, there are many misconceptions about this process.
Differentiating between myths and facts will help you better manage your expectations and avoid unnecessary worries.
Below, we share some of the most common myths and the truth behind each one:
Myth 1: Calling the IRS or a tax professional will give you a more accurate refund date.
Reality:
The most reliable way to check the status of your refund is through the Where's My Refund? tool available at irs.gov, or through the IRS2Go mobile app. You can also call the automated line at 800-829-1954, but it provides the same information as the online tool. You don't need to call the IRS unless the tool prompts you to.
Myth 2: The Where's My Refund? tool must be wrong if it doesn't update immediately.
Reality:
The Where's My Refund? online tool is updated once a day, usually overnight. Although the IRS issues most refunds within 21 days of filing, some may take longer. If the IRS needs additional information to process your return, they will contact you by mail. Also, keep in mind that bank processing times or mailing times may also impact the date you receive your refund.
Myth 3: The tool is wrong if the refund amount is less than expected
Reality:
There are several factors that can cause your refund to be lower than expected. If the IRS makes an adjustment, it will send you a letter explaining the reasons. In some cases, you may also receive a notification from the Department of the Treasury's Bureau of the Fiscal Service if part of your refund was used to pay outstanding debts, such as student loans, child support, or back taxes. We recommend waiting for the letter to understand the reason for the change before contacting the IRS.
Myth 4: If you receive a refund this year, you don't need to adjust your withholding for tax year 2024.
Reality:
Receiving a refund doesn't mean your withholding is correct. To avoid surprises next tax season, we recommend using the Tax Withholding Estimator tool, available on the IRS website. This tool will help you determine if your employer is withholding the correct amount. If necessary, complete a new Form W-4 and submit it to your employer as soon as possible. Making adjustments early allows you to better plan for your tax situation.
Having access to accurate information is key to handling tax season with confidence. Know your resources, use the tools available to you, and avoid making decisions based on assumptions.
For more official information, visit: www.irs.gov