When Can You Expect Your Income Tax Refund for 2022?

Every year, millions of taxpayers eagerly await their income tax refunds from the U.S. tax agency – the Internal Revenue Service (IRS). In this blog post, we’ll take a look at when you can expect your income tax refund for the tax year 2022.

The timing of tax refunds for the tax year 2022 will depend on a variety of factors, including when you file your income tax return, how you choose to receive your refund (e.g., direct deposit, paper check), and whether you have any outstanding tax debts or other obligations that may offset your refund.

When does the IRS issue an income tax refund?

The IRS typically issues refunds within three weeks of receiving an electronically filed income tax return or within six weeks of receiving a paper return. However, this timeline can vary based on a number of factors, including the complexity of your return and any issues that may arise during processing.

Key factors affecting the timeline for receiving an income tax return and refund:

• Errors on your income tax return: If there are errors or discrepancies on your income tax return, the IRS may need to take extra time to review and process your refund of income tax payments.
• Forms that need processing: If you claimed certain income tax credits or deductions, such as the Earned Income Tax Credits or the Additional Child Tax Credit, the IRS may need to perform additional processing steps, which can delay the refund of your income taxes.
• Identity theft or fraud concerns: If the IRS suspects that your identity has been stolen or that someone has fraudulently filed a tax return in your name, they may need to take extra steps to verify your identity before processing the refund of your income taxes.
• Incomplete information: If your tax return is missing important information or documentation, the IRS may need to request additional information from you before processing your refund.
• Mail delays: If you filed a paper return, it may take longer for the IRS to receive and process your return due to mail delays.
• Government shutdowns or reduced staffing: In the event of a government shutdown or reduced staffing levels, the IRS may have fewer resources available to process refunds, which can lead to delays.
• Back income taxes or other debts: If you owe back income taxes, child support, or other debts to the government, the IRS may offset your refund to pay off those debts, which can delay your refund.

When does the IRS hold refunds?

The IRS may hold refunds for taxpayers who claim certain tax credits or tax deductions, such as the Earned Income Tax Credit or the Additional Child Tax Credit. These can help increase your tax refunds. In such scenarios, refunds may be put on hold until mid-February to allow for additional processing time and to help prevent fraud.

Two main refundable tax credits are:

Earned Income Tax Credit (EITC)

EITC is meant to provide financial assistance to low- to moderate-income workers. To be eligible for the EITC, taxpayers must have earned income from employment or self-employment. In addition, to qualify, they must fulfill certain income and other eligibility requirements.

The EITC is calculated based on a percentage of the taxpayer’s earned income up to a maximum credit amount. The credit amount gradually phases out as the taxpayer’s income increases. The EITC is fully refundable, which means that taxpayers can receive the full amount of the credit even if it exceeds their taxes liability.

However, due to the complexity of the EITC calculation and the potential for fraud, the IRS may hold refunds for taxpayers who claim the EITC. This is done to allow for additional processing time and to help prevent fraudulent claims.

Additional Child Tax Credit (ACTC)

ACTC provides financial assistance to taxpayers who have dependent children and bear child care expenses. To be eligible for dependent care credit returns, taxpayers must have at least one dependent child who meets certain requirements. They must also meet certain income and other eligibility requirements.

The ACTC is calculated as a percentage of the taxpayer’s earned income up to a maximum credit amount per qualifying child. Like the EITC, the ACTC is fully refundable, which means that eligible taxpayers can receive the full amount of the credit even if it exceeds their tax liability.

However, similar to the EITC, the IRS may hold refunds for taxpayers who claim the ACTC. This is done to allow for additional processing time and to help prevent fraudulent claims. The IRS may hold refunds until mid-February for taxpayers who claim the ACTC to allow for additional review and processing of their taxes returns.

Other credits & deductions

• Standard Deduction from taxable income
• Child Tax Credit and Credit for Other Dependents
• Individual Retirement Arrangements (IRAs)
• Education Credits and Deductions
• Recovery Rebate Credit
• Earned Income Tax Credit (EITC) relief
• Charitable Contributions Deduction
• Relief for Withdrawals and Loans from a Retirement plan
• Plans and Individual Retirement Arrangement (IRA)

How to check the status of your income taxes refund?

If you are expecting an income taxes refund for the income tax year 2022, you can check the status of your 2022 tax refund using the “Where’s My Refund?” tool on the IRS website once your return has been processed.

The “Where’s My Refund?” tool is an online resource provided by the Internal Revenue Service (IRS) that allows taxpayers to check the status of their taxes refund. The tool is available on the IRS website and can be accessed by entering certain information, including the taxpayer’s Social Security number or Individual Taxpayer Identification Number (ITIN), filing status, bank account number, and the exact amount of the expected refund.

Once you’ve entered the necessary information, the tool will display the status of your income tax returns, including:

• whether the income tax returns have been received and are being processed.
• whether the refund has been approved.
• when the refund is expected to be issued.

The tool is typically updated daily, so eligible taxpayers can check back regularly for updates.

Taxpayers who filed a paper return: If you filed a paper income tax return, the “Where’s My Refund?” tool may not be available immediately. The IRS must manually enter the information from paper returns into their system, which can take several weeks. Once the return is entered, the tool will be updated.

Taxpayers who filed amended income tax returns: If you filed an amended tax return, the “Where’s My Refund?” tool will not show the status of your refund. Amended returns require additional processing time, and the IRS typically takes longer to issue refunds for amended returns.

Taxpayers who filed for an Individual Taxpayer Identification Number (ITIN): If you recently applied for an ITIN, you may not be able to use the “Where’s My Refund?” tool until your ITIN application has been processed. This can take several weeks or even months, depending on the volume of applications.

Taxpayers who filed a return with errors: If your income tax return has errors or is incomplete, the IRS may need additional time to process your return and issue your refund. In some cases, the “Where’s My Refund?” tool may not be available until your return is fully processed.

In general, most taxpayers should be able to use the “Where’s My Refund?” tool to check the status of their refund. However, if you fall into one of the categories listed above, you may need to wait longer or contact the IRS directly for more information about your refund status.

Determine your tax refund estimate with our expert tax advisors.

At G &S Accountancy, our expert tax advisers can guide you through your tax return. Although you can use a free tax calculator to determine your tax advantages and refunds, our experts can dig into details and provide necessary tax counseling to determine income tax refunds. So, contact our tax professionals today.