As the tax season kicks off, the IRS has officially begun accepting tax returns from all taxpayers as of January 27, prompting many to utilize the agency’s “Where’s My Refund?” app to track the status of their refunds. With an estimated 140 million returns expected to be filed before the April 15 deadline, the anticipation around refunds is palpable. Last year, about two-thirds of taxpayers received a refund, averaging around $3,100, according to IRS statistics.
For many households, the tax refund can be one of the largest financial windfalls of the year, often earmarked for debt repayment, emergency savings, or significant purchases. However, while receiving a large refund may seem like a bonus, it actually reflects overpayments made to the IRS throughout the year. Financial experts often view these refunds as interest-free loans to the government. Conversely, some argue that for many, tax refunds serve as a form of forced savings, allowing taxpayers to benefit from a lump sum at tax time.
How to Use the “Where’s My Refund?” App
The IRS provides the “Where’s My Refund?” service on its website, and it is also accessible through the mobile app, IRS2Go. Taxpayers can expect to see the status of their 2024 returns approximately 24 hours after e-filing. For those who opt to file paper returns, it may take around four weeks for their information to appear.
To track their refunds, users need to input the following information:
- Your Social Security number or Individual Taxpayer Identification Number
- Your filing status (e.g., single, married filing jointly)
- The exact amount of your expected refund, as indicated on your original 2024 tax return
Once this information is entered, the app will provide updates on whether the IRS has received the return, if the refund has been approved, and the anticipated date for the funds to be deposited into the taxpayer’s account.
Expected Refund Timing
The timing of tax refunds varies based on how returns are filed. Generally, those who e-file can expect to receive their refunds in less than 21 days. For instance, a taxpayer who files their 1040 on January 27 could see their refund by February 17, assuming no issues arise. Additionally, the IRS launched its Free File service on January 10, which allows eligible taxpayers (with an adjusted gross income of $84,000 or less) to potentially receive their refunds as early as January 31.
Possible Delays in Refund Processing
Filing a paper return can lead to delays, as these returns require manual processing by IRS employees, unlike e-filed returns that are primarily automated. Moreover, claiming tax credits such as the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) can further slow down refund processing. By law, the IRS cannot issue refunds for returns claiming these credits before mid-February. The IRS has indicated that most EITC/ACTC-related refunds should be available in bank accounts or on debit cards by March 3, provided there are no other complications with the tax return.
Errors, whether from simple math mistakes, incorrect Social Security numbers, or misspellings, can also flag a return and delay the refund process.
New Tax Brackets for 2025
The IRS has announced new tax brackets for 2025, but these changes will not affect your current return that is due by April 15. Each year, tax brackets and various provisions are adjusted to account for inflation, helping to prevent “bracket creep,” where taxpayers are pushed into higher tax bands without a corresponding increase in their living standards. The 2025 tax brackets reflect a modest 2.8% increase from 2024, marking the smallest adjustment in several years compared to more significant increases of 7% in 2023 and 5.4% in 2024.
As taxpayers navigate this year’s filing process, understanding these nuances can help alleviate some of the stress associated with tax preparation and refund expectations.
