How Long for My Tax Refund 2016?
Tax season can be an anxious time for many individuals, as they eagerly await their tax refund. The timeline for receiving your tax refund can vary depending on several factors, such as the method of filing, the accuracy of your return, and whether or not you choose to have your refund directly deposited into your bank account. In 2016, the Internal Revenue Service (IRS) introduced a new law that delayed the refunds for certain taxpayers claiming the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC). This change was implemented to combat tax fraud and identity theft. Here is a breakdown of the process and the timeline for receiving your tax refund in 2016.
Filing your tax return: The first step in receiving your tax refund is to file your tax return accurately and on time. The IRS provides several options for filing your taxes, including e-filing, mailing a paper return, or using a professional tax preparer. E-filing is the quickest and most accurate method of filing and can significantly reduce the processing time for your refund.
Processing your tax return: Once your tax return is received by the IRS, it will go through a thorough review process to ensure accuracy. This process typically takes around 21 days. However, if there are any errors or discrepancies on your return, it may take longer for the IRS to process your refund.
Claiming EITC or ACTC: If you claimed the Earned Income Tax Credit or the Additional Child Tax Credit on your return, your refund may be delayed. According to the new law implemented in 2016, the IRS is required to hold refunds claiming these credits until mid-February. This delay allows the agency to verify the accuracy of these claims and prevent fraudulent activity.
Direct deposit or paper check: The method you choose to receive your refund can also impact the timeline. If you opt for direct deposit, the IRS will typically issue your refund within 21 days of processing your return. However, if you choose to receive a paper check in the mail, it may take an additional few days for the check to arrive.
8 FAQs about tax refunds in 2016:
1. How long will it take to receive my tax refund if I e-filed my return?
– Most e-filed tax returns are issued refunds within 21 days of processing.
2. Why is my refund taking longer than 21 days?
– There might be errors or discrepancies on your return, which require additional review by the IRS.
3. I claimed the EITC or ACTC. Will my refund be delayed?
– Yes, refunds claiming these credits were delayed until mid-February due to a new law implemented in 2016.
4. Can I check the status of my tax refund?
– Yes, you can use the “Where’s My Refund?” tool on the IRS website to track the progress of your refund.
5. What happens if there are errors on my tax return?
– If the IRS identifies errors on your return, they will contact you by mail to request additional information or corrections.
6. Can I speed up the refund process by mailing my return instead of e-filing?
– No, e-filing is still the fastest and most accurate method of filing your taxes.
7. Are there any circumstances that might further delay my refund?
– If your return requires additional review due to complex tax situations or potential fraud, it may take longer to receive your refund.
8. What should I do if I haven’t received my refund after 21 days?
– If it has been more than 21 days since you e-filed your return, you can contact the IRS to inquire about the status of your refund.
In conclusion, the timeline for receiving your tax refund in 2016 varied depending on several factors such as the method of filing, accuracy of your return, and claiming certain tax credits. It is important to file your return accurately and on time, preferably through e-filing, to ensure a faster refund process. If you claimed the EITC or ACTC, your refund was delayed until mid-February. By using the “Where’s My Refund?” tool on the IRS website and staying informed about the process, you can track the progress of your refund and address any potential delays.