Tag: Brackets

Tax season is now underway, with the IRS accepting returns for all taxpayers as of Jan. 27. That’s prompting many people to turn to the “Where’s my refund?” app from the tax agency to track when they’ll get their check.

Americans are expected to file about 140 million returns before the April 15 deadline. Last year, about two-thirds of taxpayers got a refund, with the average check at about $3,100, according to IRS data. 

A household’s tax refund may represent their biggest check for the entire year, with many consumers planning to use the money for debt repayment, emergency savings or a big purchase. To be sure, while a large refund may feel like a financial windfall, it actually represents income that taxpayers have overpaid to the IRS throughout the year. 

That’s why some financial experts describe refund checks as tax-free loans to the U.S. government. Yet other experts note that tax refunds can act as a form of forced savings that a household might not otherwise be able to accomplish, allowing those taxpayers to reap the benefit in their annual refund.

Whatever the case might be, tracking your refund can be done through the IRS’ “Where’s my refund” app, which the agency has sought to improve over the last few years. Here’s what to know. 

How does “Where’s my refund?” work?

The IRS operates the “Where’s my refund?” service on its website, but taxpayers can also use a mobile app called IRS2Go on their phones or other devices. Both services will provide information about your 2024 return about 24 hours after you e-file, the IRS says.

However, people who file paper returns will need to wait about 4 weeks for their information to appear on “Where’s my refund?” or the IRS2Go app.

Both services require taxpayers to enter information to be able to track their refunds:

• Either your Social Security number or Individual Taxpayer Identification number
• Filing status, such as single filer or married filing jointly 
• The exact whole dollar amount of your expected refund from your original 2024 tax return

The IRS tracking services will then show you information on whether the agency has received your tax return, if the refund has been approved and when the money is scheduled to land in your account. 

When will I get my tax refund?

That depends on whether you’ve file electronically or sent in a paper tax return, as well as if the IRS identifies any problems with your return.

People who e-filed their returns typically receive their refunds in less than 21 days. In other words, a taxpayer who filed their 1040 on Jan. 27 could receive their payment by Feb. 17, if all goes smoothly. 

However, the IRS opened its Free File service on Jan. 10, which is a program offered through tax software companies for taxpayers with adjusted gross income of $84,000 or less in 2024. Those using Free File could be on tap to receive their refunds by Jan. 31. 

What can delay your tax refund? 

Filing a paper return can delay your refund because it requires IRS employees to process them, which takes more time than e-filed returns, which are largely handled by computers. 

Claiming either the Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC) can also slow down a tax refund. That’s because, by law, the IRS can’t issue refunds for returns that have claimed those tax credits before mid-February.

“The IRS expects most EITC/ACTC-related refunds to be available in taxpayer bank accounts or on debit cards by March 3 if they chose direct deposit and there are no other issues with their tax return,” the agency said on Monday.

Some issues can also trip up tax refunds, such as if there are math errors on your return, missing or incorrect Social Security numbers or misspelled names, according to the IRS. While these might be innocent mistakes, it can cause the IRS to flag your return and delay your refund. 

What’s my new 2025 tax bracket? 

The IRS has set new tax brackets for 2025, but that won’t impact the return you’ll file by April 15, since that 1040 reflects your 2024 income and taxes. 

Each year, the IRS adjusts its tax brackets and dozens of other provisions to account for inflation. The idea is to shield taxpayers from “bracket creep” — when workers are pushed into higher tax bands due to the impact of cost-of-living adjustments aimed at offsetting inflation — without a change in their standard of living. 

This year’s tax brackets are adjusted 2.8% higher from 2024, representing the smallest jump in several years. Because inflation jumped during the pandemic, the bracket adjustments reached 7% in 2023 and 5.4% in 2024.

Here are the new income thresholds for 2025.