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According to the IRS, 77% of tax returns filed in 2004 received a refund check, with the average refund check being $2,100. In 2011 the average tax refund was $2,913.
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These numbers may have decreased since then, but experts say that the growing number of people who owe taxes is likely a sign that the economy is improving. People are earning more and that means they get less from the IRS.
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Whether you've already filed your return or expect to wait until the last minute, the big question on the mind of everyone who expects to get money back from the IRS is when they'll receive their tax refund.
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| To help you in this matter, here is all you need to know about your refund. |
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| You have three options for receiving your individual federal income tax refund: |
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- direct deposit (electronic funds transfer) into a checking or savings account, including an IRA;
- purchase of U.S. Series I Savings Bonds; or
- paper check.
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| If you choose to receive your refund by direct deposit and want to split the refund between two or more accounts, you can request that the refund be deposited in up to three separate accounts, such as checking, savings, or retirement accounts – just complete Form 8888, Allocation of Refund (Including Savings Bond Purchases). However, if you file Form 8379, Injured Spouse Allocation, you cannot have your refund direct-deposited into more than one account. |
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| Your refund should only be deposited directly into accounts that are in your own name, your spouse’s name or both if it’s a joint account. Please note that to receive your refund by direct deposit (whether into one account or more), the total refund amount must be $1.00 or more. |
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| The IRS issues more than 9 out of 10 refunds in less than 21 days. Where’s My Refund? has the most up to date information available about your refund. The tool is updated once a day so you don’t need to check more often. |
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| You can use Where’s My Refund? to start checking on the status of your return within 24 hours after the IRS have received your e-filed return or 4 weeks after you mail a paper return. Where’s My Refund? has a tracker that displays progress through 3 stages: (1) Return Received, (2) Refund Approved and (3) Refund Sent. |
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| You will get personalized refund information based on the processing of your tax return. The tool will provide an actual refund date as soon as the IRS processes your tax return and approves your refund. Remember, most refunds will be issued in less than 21 days, and phone and walk-in representatives can research the status of your refund only if it’s been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. |
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| Have your 2013 tax return handy so you can provide your social security number, your filing status and the exact whole dollar amount of your refund shown on your return. |
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| If you do not have Internet access, you may call the Refund Hotline at 800-829-1954. Where’s My Refund? includes information for the most recent tax year filed in the current year and does not include information about amended returns. To check the status of an amended return use Where’s My Amended Return? |
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You can also use IRS2Go, the IRS free mobile app, from an iPhone or Android device.
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| Just in case, it’s also possible your tax return may require additional review and take longer under certain circumstances. Refunds from amended returns will generally be issued within 12 weeks. Injured spouse claims can take longer depending on the circumstances. |
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| If you receive a refund to which you are not entitled, or one for an amount that is more than you expected, do not cash the check until you receive a notice explaining the difference; then follow the instructions on the notice. |
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| On the other hand, if you receive a refund for a smaller amount than you expected, you may cash the check, and, if it is determined that you should have received more, you will later receive a check for the difference. You will also get a notice explaining the difference. Follow the instructions on the notice. |
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| The IRS will help you obtain a replacement for a refund check that they verify as lost or stolen. |
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| It is extremely important to enter the correct nine-digit routing number and the account number when selecting the direct deposit option. If the numbers do not pass the IRS validation check, the IRS will mail you a paper check. In addition, the account must be in your name. Some financial institutions (banks) do not allow a joint refund to be deposited into an individual account, so if you are married and filed your return with the status married filing jointly, you should check with your bank to ensure your direct deposit will be accepted. |
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| If you prefer, you can buy Series I U.S. Savings Bonds with a portion or all of your federal tax refund for yourself or anyone. Series I bonds are low-risk bonds that grow in value for up to 30 years. While you own them they earn interest and protect you from inflation. |
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Here are six things the IRS wants you to know about using your federal refund to purchase savings bonds.
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- You may use a portion of your refund to purchase up to $5,000 in U.S. Series I Savings Bonds for yourself or anyone.
- The total amount of saving bonds purchased must be in multiples of $50. Any portion of your refund not used to buy savings bonds will be deposited into another financial account – such as a checking or savings account or can be mailed to you as a paper check.
- Paper bonds will be issued in your name or the name you designate as primary owner, co-owner or beneficiary. If you are married and filed a joint return, the bonds will be issued in yours and your spouse’s name. You can also designate a beneficiary or co-owner under this name registration option.
- You will receive the U.S. savings bonds in the mail.
- Buying bonds with your refund is easy. Just select this option by filing Form 8888, Allocation of Refund (Including Savings Bond Purchases).
- Form 8888 has step-by-step instructions on how to select this option and how to specify the amount of your refund you want to use to purchase savings bonds.
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| You can request the IRS mail a paper check. If you file by mailing a paper tax return, the IRS generally will issue your refund check within six weeks from the date the IRS receives your return. If you file the return electronically, the IRS generally will issue your refund check within three weeks after the acknowledgement date. |
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| If you file electronically, your tax preparer or tax preparation and filing software may suggest you purchase a bank product which typically sets up a temporary bank account to receive your income tax refund. Such bank products include, but are not limited to, refund anticipation loans (RALs), refund anticipation checks (RACs), gift cards and debit cards. Before purchasing a bank product, it is important to understand the fees associated with these products and determine whether paying the fees is worth receiving the refund just a few days sooner. |
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You should also know that he IRS continues to increase its efforts against refund fraud, which includes identity theft. As a result of these aggressive efforts to combat identity theft from 2011 through November 2013, the IRS has stopped 14.6 million suspicious returns, and protected over $50 billion in fraudulent refunds.
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| For 2014, the IRS will continue to increase both the number and efficiency of the identity theft filters that are used to identify potentially fraudulent returns due to identity theft prior to the processing of the return and release of any refund. |
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We wish you all a smooth tax season and, as always, encourage you to enroll help from a tax professional in all your dealings with the IRS.
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