The three stages of refund tracking

The “Where’s My Refund?” tool navigates your refund journey through three distinct stages. Let’s delve into what each stage signifies:

• Return Received. When you see the message “Return Received,” it means that the IRS has successfully received your tax return, and it is currently being processed. This stage indicates that your documents are in the IRS’s hands and undergoing the necessary evaluation.
• Refund Approved. Upon completion of the processing phase, the IRS will update the status to “Refund Approved.” This stage signifies that your return has been thoroughly reviewed and approved for a refund. Additionally, the tool will provide you with an anticipated refund date, giving you a clearer idea of when to expect your money.
• Refund Sent. The final stage, “Refund Sent,” signifies that the IRS has disbursed your refund. At this point, your refund has been sent to your bank for direct deposit or a paper check has been mailed to the address listed on your tax return. It’s worth noting that the speed of receiving your refund depends on your chosen method of payment. 

Timing of Refunds

While the IRS aims to issue most refunds within 21 days, it’s important to recognize that some returns take longer to process than others. Several factors can contribute to delays in receiving your refund:

• Errors or Incompleteness. If your return contains mistakes or is incomplete, it may require additional scrutiny from the IRS. Such errors can significantly prolong the processing time of your refund.
• Identity Theft or Fraud Suspicions. In cases where the IRS suspects identity theft or fraudulent activity, they will conduct further reviews to ensure the accuracy and legitimacy of the return. While this is a necessary measure, it can lead to delays in receiving your refund.
• Further Review. Certain tax returns may undergo additional review due to complexities or discrepancies. This additional scrutiny can extend the processing time beyond the standard 21-day window.
• Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC). If you claimed the Earned Income Tax Credit or Additional Child Tax Credit on your return, your refund may experience a delay. The IRS implements thorough reviews for returns with these credits to prevent fraudulent claims.
• Form 8379 (Injured Spouse Allocation). If you filed Form 8379, which is the Injured Spouse Allocation, it can take up to 14 weeks to process. This form is utilized when one spouse’s portion of the refund is protected from certain liabilities.

To expedite the refund process, the IRS strongly recommends e-filing your return and opting for direct deposit into your bank account. These electronic methods are more efficient and reduce the likelihood of errors or delays associated with paper returns.