![]() Those in this small, affected group generally involve people who moved or changed bank accounts in December 2021, and their checks were returned as undeliverable, or their direct deposits were rejected. Of course, to make matters worse, the IRS put out Fact Sheet 2022-5 earlier this year stating that for some people, their Letter 6419 was incorrect:Ī limited group of taxpayers may receive an IRS letter with an incorrect amount of the payments received. So the IRS sent people eligible for this a form called Letter 6419, which basically told folks how much in advanced Child Tax Credit the taxpayer had received and the number of children that amount was based on according to IRS records. For the Child Tax Credit, you have to reconcile on Form 8812 how much you’re actually eligible for versus how much you received in advance during the last six months of 2021. So there’s this reconciliation that has to be done on the tax return for these credits. I imagine the IRS singled these out because so many people are eligible for these credits, but there’s a massive twist to them, and that is that many taxpayers already received a portion or, in the case of the Recovery Rebate Credit, potentially all of the credit in advance. Really, any mistake could cause a refund to be delayed, but the IRS has singled out two kinds of mistakes in particular, and those are mistakes pertaining to the Recovery Rebate Credit as well as mistakes pertaining to the Child Tax Credit. Now, for this particular 2022 tax filing season for 2021 tax returns, the IRS has specifically singled out two kinds of mistakes that could cause a refund to be delayed. So obviously if the IRS detects some error or mistake in your tax return, that could cause them to have to recalculate some items on your return, which obviously takes time even if it’s all done in a computer, and that would cause your refund to be delayed. We all make mistakes, and it’s fairly easy to make mistakes on tax returns especially if you’re using an off-the-shelf tax software that does its best to do your tax return correctly, and they usually do, but like all tools, tax software programs are tools and are only as good as the one wielding them. ![]() So if for whatever reason you paper filed your tax return, then your refund might take longer than expected to arrive. It should come as no surprise that electronically filed tax returns are, in general, processed a lot faster than paper filed tax returns. There are similar kinds of delays for returns that claimed other credits as well, such as the Additional Child Tax Credit. So for this reason refunds for tax returns that claimed the Earned Income Tax Credit are typically delayed because the IRS thinks that one out of five or one out of four Earned Income Tax Credit claims that it pays out are paid erroneously and so it wants to take some extra time to review returns that claim this credit. And that is because the IRS believes that between 21% and 26% of Earned Income Tax Credit claims are paid erroneously with some of those mistakes just being mistakes but others caused as a direct result of fraud on the taxpayer’s part. ![]() ![]() One of those is the Earned Income Tax Credit, which is a credit that taxpayers can get if they have earned income less than a certain amount for their filing status and number of children or relatives claimed as dependents and meet a few other rules. Now, there are certain credits that typically automatically cause the IRS to take longer processing your return. So what gives? Here are seven reasons why your tax refund might be delayed.Īfter these reasons, I also give you a few action steps you can take, including how to request an expedited refund if you really need that cash. Keep an eye on your mailbox, even if you are expecting a direct deposit. Double check your tax return, particularly your direct deposit information.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |