While the IRS aims to process most electronic tax returns within 21 days in 2025 (for the 2024 tax year), delays are expected, particularly for paper filings, returns with errors, or those requiring identity verification. Potential IRS budget cuts and smaller staff sizes in 2026 could further slow processing times, making electronic filing and direct deposit critical for timely refunds.
While the IRS strives to issue most refunds within 21 days of receiving an electronically filed return, 2025 has seen a noticeable uptick in refund delays. Understanding the reasons behind these delays can help taxpayers set realistic expectations and avoid unnecessary stress.
Errors, missing documents, or incomplete information are common reasons tax returns get delayed. Double-check everything before you submit. The CRA may hold your refund if you have outstanding debts, if your return is selected for manual review, or if you're not up-to-date on previous tax filings.
Only income tax filings and payments due between January 7, 2025, and October 15, 2025, qualified for a postponement to October 15, 2025. Refer to Los Angeles County fires and disaster declaration tax payments for examples of tax returns and payments eligible for postponement.
During the 2025 tax filing season, the IRS issued more than 93.5 million tax refunds to individual income tax filers, and 93% of those, almost 87 million refunds, were issued through direct deposit. Only 7 percent of individual refund recipients received their refunds by check through the mail.
April 15, 2026, is the deadline for 2025 tax returns for individuals. The due date for filing your federal income tax return is typically April 15 if you're a calendar year filer, unless this day falls on a weekend or holiday, in which case the deadline is moved to the next business day.
Those who file online will get their return faster than those who file by mail. Usually, it takes two weeks to receive a refund that was filed online and 8 weeks for one that was filed via mail.
Errors in your tax return calculations can cause delays as the IRS may need to correct them. A mismatch between your Social Security Number and the records can significantly delay your refund. Filing your tax return too early or too late can lead to delays due to IRS system updates or high processing volumes.
There's no strict maximum limit for how long the IRS can hold a refund, but they must pay interest after 45 days; while most e-filed returns take 21 days, returns needing extra review for errors, fraud, or certain credits (like EITC/ACTC) can take months (45-180+ days), and amended returns can take 8-16 weeks, with unfiled returns having an indefinite delay until filed.
Usually, it takes 4-5 weeks for the refund to be credited to the account of the taxpayer. However, if refund is not received during this duration, the taxpayer must check for intimation regarding discrepancies in ITR; check email for any notification from the IT department regarding the refund.
Data available on the Income Tax Department's website shows that around 8.80 crore income tax returns (ITRs) have been filed so far for Assessment Year (AY) 2025–26. Of these, nearly 8.66 crore returns have been verified, and about 8.02 crore have already been processed.
Your refund is taking so long likely due to errors or incomplete info on your return, suspected identity theft/fraud, claiming certain tax credits (like EITC/ACTC), filing a paper return, or outstanding debts/audits, with electronic filing and direct deposit usually being the fastest, while mail or complex returns take longer for the IRS to process.
You took certain tax credits this tax year:
Generally, the IRS can't release refunds with the Earned Income Credit (EITC) or Additional Child Tax Credit (ACTC) before February 15.
First, e-verify your return as soon as it is filed, as unverified ITRs will not be processed. Next, confirm that your bank account is valid, active, and properly updated on the portal. Linking your PAN with Aadhaar is another essential step to avoid errors.
If you file a complete and accurate paper tax return, your refund should be issued in about six to eight weeks from the date IRS receives your return. If you file your return electronically, your refund should be issued in less than three weeks, even faster when you choose direct deposit.
If the IRS decides that your return merits a second glance, you'll be issued a CP05 Notice 1 . This notice lets you know that your return is being reviewed to verify any or all of the following: Your income. Your tax withholding.
Your refund may be delayed if your return needs corrections or extra review. If we need more information to process your return, we'll send you a letter.
Timelines for getting your refund
The CRA's goal is to send your refund within: 2 weeks, when you file online. 8 weeks, when you file a paper return.
In Canada, a $2,000 tax credit often refers to the Pension Income Amount (Line 31400) for seniors receiving eligible pension/annuity income, creating a $300 federal credit (15% of $2,000), or a provincial Training Tax Credit for Apprentices, like British Columbia's $2,000 for completing specific training levels, while other benefits like the GST/HST Credit or Disability Benefit offer amounts varying based on income and family situation, not a fixed $2,000 for everyone.
The return has errors, is incomplete or is affected by identity theft or fraud. The return needs a correction to the child tax credit or recovery rebate credit amount. The return has a claim filed for an earned income tax credit, additional child tax credit, or includes a Form 8379, Injured Spouse Allocation PDF.
If you file taxes after the October 15 extension deadline, the IRS will assess penalties and interest, primarily a failure-to-file penalty (5% per month, max 25%), plus a separate failure-to-pay penalty (0.5% per month) and daily interest on the unpaid taxes, though you can request penalty abatement for reasonable cause like natural disasters. The October deadline is for filing, not paying; if you owe, payment was due in April, so you'll likely face both penalties and interest until you file and pay, but you won't be penalized if you're due a refund.