Tax season is upon us, and Americans can take specific actions to ensure their tax refunds arrive faster this year. By focusing on two key strategies, taxpayers can streamline the process and minimize delays.
Filing season basics and key deadlines
What You Need to Know About the 2025 Tax Season
The 2025 tax season covers income earned in 2024. Taxpayers can begin filing their returns on January 27, with the deadline for submissions set for April 15. This gives Americans just a few months to submit their returns on time or request an extension if needed.
Although the filing season begins in late January, many taxpayers must wait to receive W-2 forms from employers or other relevant tax documents like 1099s before filing. Missing or incomplete documentation can delay the process, so preparation is essential.
Tracking Refunds and Expected Timelines
Once a return is filed, the IRS typically processes it within 48 to 72 hours. Refunds, however, may take up to three weeks to appear in your bank account. Those who file electronically and opt for direct deposit often see faster results.
Taxpayers can track their refund status using the IRS “Where’s My Refund” tool on IRS.gov or the IRS2Go mobile app. Information becomes available within 24 hours after the IRS receives an e-filed return.
Strategies to expedite your refund
E-File and Direct Deposit: The Winning Combination
One of the simplest ways to speed up your refund is by filing electronically. Paper returns require manual processing, which significantly increases the wait time. By using the e-file option, your return is submitted directly into the IRS system, reducing the chances of errors and delays.
Additionally, opting for direct deposit ensures the fastest delivery of your refund. Instead of waiting for a paper check, taxpayers can receive their money directly into their bank accounts. The IRS even allows refunds to be split across multiple accounts, offering greater flexibility.
Preparation is key
Tax professionals emphasize the importance of being organized before filing. Drew Powers, founder of Powers Financial Group, advises gathering all relevant documents, including prior-year tax returns, W-2s, 1099s, and receipts for deductions like charitable donations. “Being organized makes the process of preparing a return go much faster,” he told Newsweek.
Financial literacy expert Alex Beene echoes this advice. “File early and virtually,” he said, noting that e-filing and direct deposit are critical for faster refunds. He also recommends using tax preparation software to catch errors and avoid delays.
Other important tax details
Standard Deduction and Average Refunds
For the 2024 tax year, the standard deduction is $14,600 for single filers and $29,200 for those married filing jointly. This deduction reduces the taxable income, potentially lowering the amount owed to the IRS or increasing the size of the refund.
The average tax refund in 2024 for the prior tax year was around $3,050, a 5% increase from 2023. Choosing methods like e-filing and direct deposit can help taxpayers receive these refunds more quickly.
Extending the filing deadline
For those unable to meet the April 15 deadline, the IRS provides options to request an extension. Filing Form 4868, the Application for Automatic Extension of Time to File, gives taxpayers until October 15 to submit their returns. However, it’s crucial to estimate and pay any taxes owed by April 15 to avoid penalties.
Tax season may feel daunting, but with proper preparation and the right filing methods, taxpayers can ensure a smoother process and a quicker refund.