Tax season is here, and many people are eagerly waiting for their refunds. All over social media, I am seeing a massive increase in tax questions and general uneasiness as with this year, many are struggling financially. However, this year unfortunately brings some key changes, potential delays, and factors that could impact how quickly you receive your money. Whether you’re filing on your own or using tax software like TurboTax, this guide will help you understand what’s different, when you can expect your refund, and what you can do to avoid unnecessary delays.

Key Changes for the 2025 Tax Season (2024 Tax Returns)

The IRS has implemented several updates this year:

• Expanded Free Filing Options: The IRS is increasing access to free electronic filing services.
• Delayed Refunds for Certain Credits: The PATH Act requires the IRS to hold refunds for certain tax credits until mid-February.
• Increased Security Measures: More taxpayers may be required to verify their identities.
• Natural Disaster Relief: Special tax relief is available for those affected by federally declared disasters in 2024.

When Can You Expect Your Tax Refund?

The IRS began accepting tax returns on January 27, 2025. If you file electronically and choose direct deposit, refunds are typically issued within 21 days. However, certain factors can delay your refund, including:

Refund Schedule for 2025

• Standard electronic filers: Expect refunds within 21 days of e-filing.
• Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC) filers: Refunds won’t be processed before February 15, 2025, with most expected by March 3, 2025.
• Paper filers: Processing can take six weeks or longer.
• Returns requiring identity verification: Processing may be delayed by several weeks.

What is the PATH Act and Why Does It Delay Refunds?

The Protecting Americans from Tax Hikes (PATH) Act was created to reduce tax fraud. It requires the IRS to delay refunds for those claiming the Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC) until at least February 15. This allows the IRS to verify income and prevent fraudulent claims.

Identity Verification: What to Do If the IRS Flags Your Return

The IRS may request identity verification if your return is flagged for potential fraud. If this happens, you will receive a letter with instructions to verify your identity online, over the phone, or in person. You can check the status of your verification on the IRS website.

Checking Your Refund Status: When and Where

To avoid repeatedly checking your refund status, use the IRS tools wisely:

• IRS “Where’s My Refund?” Tool: Updates within 24 hours of e-filing and is available here.
• IRS2Go App: A mobile alternative for refund tracking.
• Tax Software Trackers: Services like TurboTax, H&R Block, and TaxAct offer refund tracking features.

When to check:

• Within 24 hours of e-filing.
• Once per day, as the IRS updates statuses overnight.

How to Get Your Tax Transcripts and Decode IRS Codes

If you need to check your tax records, you can request your IRS tax transcript, which provides detailed information on your return and refund status. Here’s how:

1. Online Request: Visit the IRS’s Get Transcript page and log in with your IRS account.
2. Mail Request: You can request a transcript by mail, but this may take 5-10 business days.
3. Phone Request: Call the IRS automated line at 1-800-908-9946.

Understanding IRS Transaction Codes

Your tax transcript contains various transaction codes (TC) that provide insights into your return processing. Some common ones include:

• TC 846: Refund issued.
• TC 570: Additional review; possible delay.
• TC 971: Notice issued (could be identity verification or additional review).
• TC 152: Return is being processed.

These codes can help you determine the status of your refund beyond what is displayed on “Where’s My Refund?”

TurboTax’s 5-Day Early Filing Option

TurboTax offers early filing, allowing users to submit returns five days before the IRS officially begins processing. While TurboTax transmits returns as soon as the IRS starts accepting them, this feature can help you get ahead of the queue and potentially receive your refund sooner.

While many did choose this option this year, I do not believe that the 5-day early option will actually get applied, but I have heard we will get our money back for it if it doesn’t go through since the PATH act and other regulations are slowing everything down.

Bank Processing Times & Banks Offering Early Refund Access

Even after the IRS sends your refund, bank processing times vary. Some banks release funds faster, while others take an extra 1-5 business days. Here’s a quick breakdown:

Banks That Process Refunds Faster:

• Chime: Early direct deposit (up to 2 days early)
• Netspend: Refunds can be available up to 2 days early
• Current: Allows early direct deposit
• Varo Bank: Refunds may arrive up to 2 days early

Banks That May Take Longer:

• Traditional banks (Chase, Wells Fargo, Bank of America, etc.): Processing typically takes 1-3 business days.

Tip: If receiving your refund ASAP is important, consider switching to a bank that offers early direct deposit.

Common Reasons for Tax Refund Delays

1. Errors or Incomplete Information: Incorrect Social Security numbers, mismatched income data, or missing forms can slow down your refund.
2. PATH Act Delays: Refunds for EITC and ACTC claimants won’t be released before February 15.
3. Identity Verification Requests: If flagged, you must complete the verification process before your refund is processed.

I have heard reports of these being sent in the mail. By calling your rep, you can verify if this is needed and if they need to send it out. I’ve heard that they won’t send it to you unless you ask.

1. Paper Filing: Takes significantly longer than e-filing.
2. Bank Processing Delays: Some banks take longer to deposit refunds.

Tips to Get Your Refund Faster

1. File Electronically: E-filing is faster and reduces errors.
2. Use Direct Deposit: Paper checks take longer to process and mail.
3. File Early: Don’t wait until the last minute to avoid bottlenecks.
4. Double-Check Your Return: Ensure accuracy to avoid IRS delays.
5. Use Tax Software: Services like TurboTax, H&R Block, or TaxAct can help streamline filing and catch errors before submission.

Final Thoughts: Stay Informed & Be Patient

While it’s natural to be eager for your refund, understanding IRS processing times and common delays can help manage expectations. By filing early, opting for direct deposit, and checking your refund status only once per day, you can avoid unnecessary stress during tax season.

For the most up-to-date information, visit the IRS website or use trusted tax software to track your return. Stay patient, and your refund will arrive before you know it!