Refunds are taking longer in 2025 due to a combination of increased IRS scrutiny for fraud/errors, a backlog from complex pandemic-era filings, staffing issues, technical upgrades, and more paper returns, especially impacting those claiming credits like the EITC/ACTC, leading to longer processing times beyond the standard 21 days for many. Common issues include missing forms, math errors, identity theft concerns, and mismatches between reported income and employer data, requiring manual review.
*Update for the 2025 tax year: The IRS issued more than 9 out of 10 refunds to taxpayers in less than 21 days last year. The same results are expected in 2026. Tax refunds are processed by the IRS two times per week.
For 2025 tax refunds (filed in 2026), expect e-filed returns with direct deposit in about 21 days, while paper returns take 4-8 weeks, though EITC/ACTC refunds are delayed until mid-February by law. Use the IRS "Where's My Refund?" tool for the most accurate status, needing your SSN, filing status, and refund amount.
The information in this article is up to date for tax year 2025 (returns filed in 2026). Most refunds will be issued within 21 days after the return has been accepted, according to the IRS. The IRS typically sends out refunds on a schedule.
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.
Use the IRS Where's My Refund tool or the IRS2Go mobile app to check your refund online. This is the fastest and easiest way to track your refund. The systems are updated once every 24 hours. You can contact the IRS to check on the status of your refund.
When taxpayers file their 2025 tax. returns in 2026, many will see larger refunds than in recent years. That's due to the One Big Beautiful Bill Act (OBBBA), which reduced individual income taxes for 2025 by an estimated $129 billion. But because the IRS did not adjust withholding.
You generally shouldn't worry if your refund is "still being processed," as it means the IRS is working on it, but it might take longer than the typical 21 days due to common issues like errors, incomplete information, or claiming credits like the EITC/ACTC. Worry only becomes necessary if you receive an IRS letter requesting more information or if the "Where's My Refund?" tool shows a specific problem like fraud, but typically, it just means a longer wait, not no refund at all.
Most refunds issued in less than 21 days: EITC refunds for many available by March 3.
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.
Common reasons for a tax refund delay include if: You claimed tax credits like the Earned Income Tax Credit (EITC) or Additional Child Tax Credit and it is before mid-February. The IRS does not begin releasing refunds with these credits until mid-February. Your return is incorrect or incomplete.
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.
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.
The IRS "10k rule" primarily refers to the requirement for businesses and financial institutions to report cash transactions over $10,000 by filing Form 8300 (for businesses) or a Currency Transaction Report (CTR) (for banks), under the Bank Secrecy Act. This rule helps combat money laundering, tax evasion, and terrorist financing, requiring reporting for single transactions or related transactions totaling over $10,000 in cash within a year, with penalties for non-compliance.
To avoid the 22% tax bracket (or any higher bracket), focus on reducing your taxable income through strategies like maxing out 401(k)s and HSAs, deferring bonuses, tax-loss harvesting, smart charitable giving, and strategic asset location, understanding that higher rates only apply to income within that bracket, not your entire income.
The "20k rule" refers to the traditional IRS threshold for reporting income from payment apps and online marketplaces on Form 1099-K: over $20,000 in gross payments AND more than 200 transactions in a calendar year. While a law (the American Rescue Plan) temporarily lowered the threshold to $600, recent legislation, the One Big Beautiful Bill Act (OBBBA) (OBBBA), has reinstated the $20,000/200-transaction rule for tax years starting in 2025, providing relief for casual sellers and gig workers.
What causes an IRS refund delay?
For individual tax returns, call 1-800-829-1040, 7 AM - 7 PM Monday through Friday local time. The wait time to speak with a representative may be long. This option works best for less complex questions. For questions about a business tax return, call 1-800-829-4933, 7 AM - 7 PM Monday through Friday local time.
A tax refund could be delayed weeks or even months in some cases. The length of the delay may depend on how backed up the IRS is on processing tax returns, whether you turn around requested documentation quickly, and whether you need to file an amended return.
You must offer a refund to customers if they've told you within 14 days of receiving their item that they want to cancel. They have another 14 days to return the item once they've told you. You must refund the customer within 14 days of receiving the item back.
There are a variety of factors that may impact your refund processing time, including your fling method, your refund method, and the information included on your tax return. E-filing vs. paper filing: Your filing method is an important factor that can impact the amount of time it takes you to receive your refund.