How Long is the Tax Refund to Show in the Bank? IRS Deposit Timeline Explained

To some taxpayers, the most exciting part of filing their taxes is waiting on the IRS to send a tax refund. However, receiving the refund is greatly anticipated even more when the IRS has approved the tax return. At this point, most taxpayers will wonder: when will this money be available in the account? The timeframe for receiving the tax return will greatly depend on the methods of receiving the refund; for example a direct deposit or a physical paper check, along with some additional considerations.

Direct Deposit vs. Check Refunds

Most taxpayers prefer direct deposit since it is considered to be the most secure and efficient mode of payment. There are taxpayers, however, who prefer paper checks and do not have direct deposit for which the IRS has some sort of automatic direct deposit paper check payment system for such taxpayers.

Direct Deposit Timeline

After receiving the refund approval, most individuals will have the money in their account within 5 business days, with the payment being issued anytime between 1-3 days after the tax payment is released. Unfortunately, many taxpayers have issues receiving the money within the 3 days due to varying limitations and issues with their banks.

Mailed Check Timeline

On the other hand, if the payment is not made via direct deposit, the approval timeframe could be greatly decreased with the payment being received in just 1-3 weeks in the instance where the payment is sent via mail. The 1-3 weeks is currently the most competitive timeframe available in the market with some postal services.

Factors That May Affect Timing

You may have received a notice for a refund, and there are some conditions which may apply for the timing of the refund:

• Bank Processing Times: Some banks will post a deposit immediately, while other banks may take a few additional business days.
• Weekends and Federal Holidays: Transactions are not processed on these days and therefore a transaction may have to wait for the next business day.
• Errors in Account Information: Providing the wrong routing number and wrong account number can cause a refund to go off-course and be unclaimable. In some instances, the IRS issues a refund in the form of a paper check.

How to Track Your Refund

To avoid the guess work, the IRS has developed features so that people are able to track their money:

• “Where’s My Refund?” Tool: This feature is on the IRS website and allows users to claim a refund by providing their Social Security number, filing status, and the refund claim amount.
• IRS2Go Mobile App: This mobile app has similar features and is intended to be more user-friendly.

Generally, both of these features have a twenty-four hour delay, and the information is uploaded overnight.

What to Do If It’s Delayed

Although most companies do offer refunds within the stipulated time set out for them, sometimes, refunds can take a considerably longer time to come in. If this is the case for you, you can take the steps below to see if you can expedite the refund:

• Most taxpayers do get their refunds much before the 21 day mark, however, the IRS recommends to wait this time before reaching out. You need to wait 21 days after you have filed, for the IRS to process your refund.
• It is also wise to take a look at the direct deposit information you provided to check if you may have made an error on the information provided in your tax return.
• It is fine to contact the IRS if it is more than 21 days since the last update you received. Otherwise, you can call them only after the “Where’s My Refund?” option has directed you to customer service.

If you need further assistance, reach out to our experts today. Dimov Tax stands ready to provide professional support.

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