How Long Does It Take for TurboTax to Process Your E-filed Federal and State Tax Returns?
Tax season can be a stressful time, but understanding how TurboTax processes your returns can help alleviate some of the anxiety. Let's break down the process and the timeline you can expect when using TurboTax for both federal and state tax returns.
TurboTax Processing Responsibilities
When you use TurboTax to e-file your taxes, the actual processing of your return is not handled directly by TurboTax. Instead, the software primarily focuses on ensuring that the information you provide is accurate and complete. Once you click to submit your e-filed return, TurboTax typically completes the process and submits your tax forms to the IRS (Internal Revenue Service) within a few seconds.
IRS Processing Time
The IRS, on the other hand, handles the review process. Once your tax forms are received by the IRS, the agency performs its checks for accuracy and completeness. This review typically takes just a few hours. In some cases, however, the IRS may take up to a few days to process the return fully.
Even though the IRS may say they have 'accepted' your return, it's important to remember that acceptance does not imply that your return is final. If there are any errors or fraud, the IRS may investigate and take corrective action even after acceptance. There is a three-year window for them to find errors, and no statute of limitations for fraud.
State Tax Return Processing
State tax returns often take longer to process than federal returns. The processing time can vary widely, depending on the state. TurboTax will usually get an acceptance of both federal and state returns within 48 hours from the submission. However, the particular state where you file may lag behind. For instance, I have experienced delays of up to six weeks for the state tax refund.
Refund Processing and Distribution
Once your return is accepted, you'll need to wait for your refund. If you are due a refund, the IRS typically takes between 2 to 3 weeks to make a direct deposit if the process is straightforward. If you request a paper refund check, processing can take up to 4 to 6 weeks.
For those eager to receive their refunds quickly, TurboTax offers a refund anticipation loan option. With this service, you can get access to your refund within a few business days, although the total refund amount will be reduced by loan fees.
It's worth noting that TurboTax doesn't process your return; they submit your tax forms to the appropriate agencies. Therefore, the actual processing and acceptance of your return is the responsibility of the IRS and your state’s tax department.
If you encounter issues or delays, consider contacting TurboTax support for assistance. They can provide guidance and help you understand the status of your return.
Understanding the timeline and process can help you manage your expectations and prepare for the tax season ahead. Whether you're simply filing your taxes or undergoing a more complex return process, TurboTax can be a valuable tool to ensure your taxes are processed accurately and efficiently.