Most years, the IRS issues tax refunds within about 21 days, especially when you file electronically and choose direct deposit. When everything moves according to schedule, you may receive your refund without giving the process much thought.
But when a few weeks turn into a month– or even several months– it is natural to start wondering:
“Where is my money?”
A delayed tax refund can be frustrating, particularly when you were counting on that money to pay bills, reduce debt, build your savings, or cover an important household expense.
Before you panic, take a breath. Tax refund delays are common, and most have simple explanations. Your return may need additional processing, the IRS may be waiting for information, or one of several routine issues may have slowed it down.
Here is what you need to know when your tax refund is delayed.
How Long Does an IRS Tax Refund Usually Take?
Most years, the IRS issues refunds within about 21 days when taxpayers e-file their returns and select direct deposit.
Electronic filing generally gives the IRS your return more quickly than mailing a paper return. It also allows your tax software or tax professional to check for certain errors before the return is submitted.
Direct deposit removes the additional step of waiting for a paper refund check to arrive through the mail.
However, the 21-day timeframe is not a guarantee for every taxpayer. Some returns require additional review or manual processing. That does not necessarily mean you made a mistake or that something is seriously wrong.
The first step is determining whether the IRS actually accepted your return.
Start With the Basics: Was Your Tax Return Accepted?
Whenever possible, e-file your tax return. Electronic filing is faster, more accurate, and provides almost immediate confirmation that the IRS received and accepted your return.
That confirmation is important because submitting a return and having it accepted are not always the same thing.
An electronically filed return first goes through an initial review. If the return passes that review, you should receive confirmation that it was accepted. Your return can then move forward through the IRS processing system.
If the return does not pass the initial review, it may be rejected.
A rejected return has not yet been successfully accepted for processing. Fortunately, many rejection issues are relatively simple to correct.
What Happens If My Tax Return Was Rejected?
If your return was rejected, the tax software you used to file should tell you why.
The rejection notice will usually include information about the problem that prevented the IRS from accepting the return. Depending on the issue, you may be able to correct the information and submit the return again.
Many rejected returns involve missing information, mismatched information, or an identification number that was entered incorrectly.
These problems may sound alarming when you first receive the rejection notice, but most are quick fixes.
Common Reasons a Tax Return Gets Rejected
Here are several common reasons the IRS may reject an electronically filed tax return.
A Return Was Already Filed Using Your Social Security Number
A return may be rejected if another return has already been filed using your Social Security number.
This may also happen when a return has already been submitted using your spouse’s Social Security number or the Social Security number of someone you claimed as a dependent.
When the IRS system recognizes that a Social Security number has already appeared on another return, it may prevent the new return from being accepted electronically.
Your Return Is Missing Form 1095-A
Form 1095-A relates to health insurance purchased through the Health Insurance Marketplace under the Affordable Care Act.
If IRS records indicate that you or someone in your household had Marketplace health insurance, a missing Form 1095-A may cause your return to be rejected.
Names and Social Security Numbers Do Not Match
The names and Social Security numbers entered on your return must match IRS records.
A simple typing error, an incorrect number, or a name that does not match the information associated with the Social Security number can prevent the return from being accepted.
This can apply to your information as well as information entered for your spouse or dependents.
Your IP PIN Is Missing or Incorrect
Your Identity Protection PIN, also known as an IP PIN, is another common source of rejected returns.
If the IRS requires an IP PIN for your return, the correct number must be included. A missing or incorrectly entered IP PIN can prevent the return from being accepted.
These rejection issues are usually easy to correct, and you can often re-file the same day.
What If My Return Was Accepted but My Refund Is Delayed?
Receiving confirmation that your return was accepted is reassuring. It means the IRS received the return and allowed it to enter the processing system.
However, acceptance does not always mean that your refund will be issued immediately.
If the IRS accepted your return but your refund has not arrived, do not automatically assume the worst. Several common situations can slow down the process.
Five Common Reasons Your Tax Refund May Be Delayed
1. You Claimed the Earned Income Credit or Additional Child Tax Credit
Refunds involving the Earned Income Credit or Additional Child Tax Credit may take longer to process.
By law, the IRS cannot issue these refunds before mid-February. Even after that date, they often take longer to process than returns that do not claim these credits.
This delay does not necessarily indicate a problem with your return. It may simply be part of the required processing schedule for refunds involving these credits.
2. You Filed a Paper Tax Return
Paper returns move through the system at a much slower pace than electronically filed returns.
When you mail a return, it must be received, opened, entered, and processed. Because more of the process is handled manually, paper filing generally requires more time.
Processing a paper return can take 6–12 weeks or longer during peak tax season.
If you filed on paper, a longer wait may be normal even when your return is complete and accurate.
3. You Filed an Amended Tax Return
An amended return is filed using Form 1040-X.
Taxpayers may file amended returns when they need to make a change to a previously filed return. Because amended returns are processed manually, they generally take much longer than standard electronically filed returns.
An amended return can take up to 16 weeks to process.
That longer timeline can be frustrating, but it does not automatically mean there is a problem. The manual review process simply requires additional time.
4. The IRS Flagged Possible Identity Theft or Fraud
The IRS may pause a tax refund when something on the return does not match its records or raises a concern about possible identity theft or fraud.
In that situation, the IRS may require you to verify your identity before it continues processing the refund.
Identity verification is intended to help prevent someone else from filing a fraudulent return or receiving a refund using your personal information.
Although this additional step can delay your refund, it may be necessary to protect your identity and tax account.
5. Your Income Documents Do Not Match IRS Records
The IRS receives income information from employers, financial institutions, and other organizations.
If the numbers reported on your tax return do not match the information shown on your W-2s or 1099s– or do not match what employers or financial institutions reported– the IRS may need to review the return manually.
A manual review naturally takes longer than automated processing.
The delay may continue until the IRS can determine why the information does not match and whether anything else is needed.
Does a Delayed Tax Refund Mean I Made a Mistake?
Not necessarily.
Refund delays are often caused by routine processing issues rather than a serious mistake on the taxpayer’s part.
A return involving certain credits may require more time. A paper or amended return may move more slowly because it requires manual handling. The IRS may also need to compare information or confirm your identity before releasing the refund.
It is understandable to feel concerned when you do not receive your money within the expected timeframe. However, a delay by itself does not prove that your return was completed incorrectly.
If your return was accepted, the IRS has it. It may simply need additional time to complete the process.
Will the IRS Contact Me About My Delayed Refund?
If the IRS needs more information, it will send a letter to the address it has on file.
The letter should explain:
- What information the IRS needs
- Why your tax refund is delayed
- How you should respond
Read any letter carefully and follow the instructions it provides. The notice should tell you what information or documentation is needed and where your response should be sent.
It is also important to make sure the IRS has your current mailing address, especially if you have recently moved.
Be Careful of Tax Refund Scams
Waiting for a delayed refund can make you especially vulnerable to messages that claim to offer an immediate update or solution.
Important: The IRS does not call, text, or email about refund delays. If you receive one of those communications, it is a scam.
Do not provide your Social Security number, banking information, passwords, or other personal details to someone who unexpectedly contacts you and claims to represent the IRS.
A legitimate request for additional information about your delayed refund will arrive in a letter sent to the address the IRS has on file.
Still Waiting for Your Tax Refund? Matterhorn Tax Planning Can Help
A delayed tax refund is frustrating, but it is usually connected to a routine processing issue rather than a mistake on your part.
Your return may involve a tax credit that requires additional time, a paper or amended filing, identity verification, or income documents that do not match IRS records. If the return was accepted, the IRS has it– it may simply need additional time or information before your refund can be released.
If you have received an IRS letter, are unsure why your tax refund is delayed, or need help understanding what the IRS is requesting, contact Matterhorn Tax Planning. Our team can help you review the situation, understand the communication you received, and determine what steps may be needed next.