Tax Refund Tracker: Understanding ‘Being Processed’ and Its Implications for Approval

Tax Refund Tracker: You have successfully filed your taxes and are anxiously awaiting your tax refund. After approximately 24 hours, the IRS provides a useful tool on IRS.gov titled “Where’s My Refund?” that allows you to monitor the status of your tax refund. You can track the status of your refund by entering your SSN or ITIN, filing status, and exact refund amount. However, numerous taxpayers frequently encounter the message “Your return is being processed.” This article will examine the significance of this message and explain the three phases of the refund monitoring procedure.

Tax Refund Tracker: The three steps involved in refund monitoring

The “Where’s My Refund?” tool guides you through three distinct phases of the refund process. Let’s examine what each stage represents:

• Return Obtained. When you see the message “Return Received,” it indicates that the IRS has successfully received and is presently processing your tax return. This phase indicates that the IRS is currently evaluating your documents.
• Refund Authorised. When the processing phase is complete, the IRS will update the status to “Refund Approved.” This indicates that your return has been thoroughly reviewed and a refund has been authorised. In addition, the utility will provide an estimated refund date, giving you a better idea of when to anticipate receiving your money.
• Refund Sent. The final phase, “Refund Sent,” indicates that the IRS has sent your refund. At this time, your tax refund has either been sent to your bank for direct deposit or mailed to the address on your tax return. Notably, the quickness with which you receive your refund depends on the payment method you select.

What is Universal Credit? How much will you receive, and what extra help is available? (www.eduvast.com)

Tax Refund Tracker: The Schedule of refunds

While the IRS strives to issue the majority of refunds within 21 days, it is essential to note that some returns take longer to process. Several factors may contribute to the delay of your refund:

Errors and/or omissions:

If your tax return contains errors or is missing information, the IRS may conduct additional review. Such errors can significantly lengthen the time required to execute your refund.

Suspect Identity Theft or Fraud:

In instances where the IRS suspects identity theft or fraudulent activity, they will conduct additional evaluations to confirm the return’s accuracy and legitimacy. Although this is a necessary measure, it may cause a delay in your refund.
Additional Review. Due to complexity or discrepancies, certain tax returns may be subject to additional scrutiny. This additional scrutiny can extend the standard 21-day processing timeframe.

Additional Child Tax Credit (ACTC) or Earned Income Tax Credit (EITC):

If you claimed the Earned Income Tax Credit or Additional Child Tax Credit on your tax return, there may be a delay in processing your refund. The IRS conducts comprehensive evaluations of tax returns containing these credits to prevent fraudulent claims.

Injured Spouse Allocation Form 8379:

Form 8379, the Injured Spouse Allocation, can take up to 14 weeks to process after submission. This form is used when a spouse’s refund portion is protected against certain liabilities.

To expedite the refund process, the IRS strongly recommends e-filing your tax return and selecting direct deposit. These electronic methods are more effective and reduce the possibility of errors or delays associated with paper returns.

While it can be difficult to wait for your tax refund, you should generally only contact the IRS if it has been more than 21 days since you e-filed or if the “Where’s My Refund?” tool instructs you to do so. Most refunds are processed within the anticipated timeframe, so patience is essential.

Understanding the phases and timelines of the IRS refund tracing procedure can reduce anxiety and provide clarity during the waiting period. From the initial “Return Received” notification to the anxiously awaited “Refund Sent” notification, each step represents progress towards receiving your tax refund. Be diligent and utilise the IRS’s online tool for regular updates on the status of your refund.