The United States tax season opened on January 27, 2025, and many people have already filed their returns for 2024. Those who claimed tax refunds and are in credit after their tax liability want to know when their payments will be processed and those who are yet to file want to know how long they will wait after submitting their returns. You can find the information below.
How long will it take the IRS to pay out tax refunds?
The US Internal Revenue Service expects 140 million Americans to file tax returns before the April 15 deadline this year and processing them all is a massive and complex undertaking. Many people got organized early and filed their returns within days of the season opening and those who applied for tax credits and have refunds due want to know when their money will be paid out.
The IRS says that taxpayers who file their returns electronically should have their refunds paid out within 21 days. Those who chose to receive their payments electronically should see the funds hitting their accounts in well under three weeks, but for filers who choose to submit on paper and be paid via paper check, it will take four weeks or more. The waiting time will be increased if returns need corrections or amendments.
The IRS has warned taxpayers that refund dates are not set in stone and they shouldn’t make plans or decisions on a date when it can’t be counted on.
There’s good news for Americans living outside the country’s borders: you can still qualify for the Child Tax Credit under certain conditions.
How do you check the status of your tax refund?
The IRS has launched a new online tool called Where’s My Refund? for filers to check the status of their tax refunds. The service becomes available within 24 hours of e-filing and generally, those who file on paper should be able to check their refund status within four weeks. The Where’s My Refund? tool is updated once a day overnight.
To access the tool and check your status, you will need to input the following information:
- Your Social Security or individual taxpayer ID number (ITIN).
- Your filing status.
- The refund that was calculated on your return.
How do refunds work and what are the criteria for the EITC and CTC?
For whatever reason, many taxpayers end up paying more tax during the year than what’s due, which means that the Internal Revenue Service owes them money at the closing of the fiscal year. Even filers who didn’t pay more tax than owed may still end up in credit with the IRS if they qualify for any of the tax credit programs.
Two of the credits available are the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC). In addition to more specific criteria for each program, tax filers need to submit their returns and claim the refund within three years.
Who qualifies for the Earned Income Credit (EITC)?
Here are the criteria for the EITC:
- Income thresholds and number of children: Qualifying for the EITC depends on whether people file their taxes individually or jointly and how many children they have. For example, the income threshold is $18,591 for individuals with no children and $66,819 for couples with children who file jointly. Filers can use the online EITC Assistant tool to calculate the credit amount.
- Investment income: The maximum amount allowed in investment income is $11,600.
What are the criteria for the Child Tax Credit (CTC)?
The criteria for the CTC are quite simple: anyone who has a child is likely to qualify for a portion or the total of $2,000. These are the qualifying criteria for children:
- They must have a Social Security number.
- They must have been under the age of 17 years at the end of 2024.
- They must be listed as a dependent on the claimant’s tax return.
Taxpayers for the full Child Tax Credit of $2,000 for each child if they meet all eligibility factors and their annual income does not exceed $200,000, or $400,000 if filing a joint return.
People who are waiting for their credit to be paid out are encouraged to only trust verified information on official channels and not make any firm financial plans for the money until the funds have actually been paid out.
There are benefits to submitting your tax return as early as possible, including getting the most out of your refund, getting paid any funds due as soon as possible, and avoiding being targeted by scammers.