The IRS anticipates that 140 million people will file returns by April 15 as the NEW YORKTax season gets underway. A new online tool has also been introduced by the department to assist taxpayers in tracking down the status of any refunds to which they may be eligible. Last year, the Direct File program was extended from 12 to 25 states.
In an attempt to cut the size of the government workforce, President Donald Trump this week offered a buyout package to all federal employees. It is unclear how this will affect IRS personnel at a critical time for the agency. A request for comment was not immediately answered by the IRS.
Here’s what you should know:
When will I receive my refund?
According to the IRS, you should receive your refund in 21 days or less if you file your tax return electronically. It should take even less time if you decide to get your refund by direct deposit. The refund process may take four weeks or longer if you file a paper return, and it may take longer if your return needs to be amended or corrected.
When making significant purchases or paying payments, the IRS advises taxpayers not to count on getting their money back by a specific date.
How can I check the status of my refund?
The Where’s My Refund? online tool is available to taxpayers.to verify the status of their income tax refund within four weeks after completing a paper return, and within 24 hours after filing electronically.
This tool’s information is updated once every day, overnight. You will require the following to view the status of your refund:
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Your Social Security or individual taxpayer ID number (ITIN)
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Your filing status
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The refund amount calculated on your return
How do refunds work?
You should receive your money back if, as a result of withholding or other circumstances, you paid more in taxes throughout the year than you owe. If you are eligible for a refundable credit, such as the Earned Income Tax Credit (EITC) or Child Tax Credit, you may still receive a refund even if you did not pay excess tax. You have three years to claim your tax refund, and you need to file a return in order to receive it.
Direct File program expands
People can now submit their taxes directly with the IRS for free thanks to an expanded program. From 12 states that participated in last year’s pilot program, taxpayers in 25 states can now access the federal Direct File program, which enables them to prepare and file their forms without the need of commercial tax preparation software.One of the states taking part is Oregon.
In certain areas, the program enables individuals with extremely basic W-2s to compute and file their forms with the IRS directly. In October, the IRS said that more over $90 million in refunds had been claimed by those who used the pilot program in 2024.
Do I qualify for the Earned Income Tax Credit (EITC)?
You must earn less than a certain amount from employment and have less than $11,600 in investment income in order to be eligible for the EITC. Your income must be $18,591 or less if you are a single parent. Additionally, you must earn $66,819 or less if you are married and filing jointly with three or more children. You can use the online EITC Assistant tool to find out if your household qualifies based on your marital status and the number of dependents you have.
What about the Child Tax Credit?
You probably qualify for the Child Tax Credit if you have a child. Each eligible child may receive up to $2,000 in credit. To be eligible, a child needs to:
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Have a Social Security number
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Be under age 17 at the end of 2024
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Be claimed as a dependent on your tax return
If you meet all the requirements and your yearly income is under $200,000 ($400,000 if you file a joint return), you are eligible for the full amount of the kid Tax Credit for each qualified kid.
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