Understanding Your 2018 Federal Income Tax Refund Processing Time

When it comes to the 2018 federal income tax refund, the Internal Revenue Service (IRS) typically processes e-filed returns with direct deposit within 21 days of acceptance. However, there are several factors that can affect this timeline. It's important to understand these factors to have a realistic expectation of when you might receive your refund.

Timing and Complexity of Your Tax Return

The complexity of your tax filing and the timing of the submission can significantly impact how quickly your refund is processed. For early filers, returns that include the Earned Income Tax Credit (EITC), and other refundable credits, may not process until after February 15, with refunds going out during the first week of March.

The IRS processes returns on a first-come, first-served basis. If the IRS has a backlog of returns, then the processing time can be significantly longer. For example, if the IRS has already received a week's worth of returns, and your return arrives when the IRS is processing a week's worth of filings, your refund could be processed within a week to two weeks. Conversely, if the IRS has received a month's worth of returns, and your return arrives when they are processing a month's worth of filings, the processing time could be anywhere from one to two months.

Factors Affecting Refund Timing

Several factors affect the processing time of your tax refund. These include:

The complexity of the tax filing. Complex returns take longer to process. The timing of submission. Early filers may face longer processing times. The method of submission (mail vs. electronic) The IRS workload. A high volume of returns can result in longer processing times.

While you cannot control most of these factors, it is crucial to submit your return as soon as possible. Keep in mind that the processing time is not based on a strict turnaround schedule for each day. Instead, it is based on the queue of returns that are already before yours. The sooner your return is in the queue, the sooner it can be processed.

Preventing Refund Delays

One of the ways to speed up the processing time is to avoid delays caused by errors in your tax return. Common errors include incorrect Social Security numbers, missing information, and claiming too many deductions or credits. Ensuring that your return is accurate and complete can help avoid unnecessary delays.

It's also important to avoid falling into the hands of tax preparers who may not have your best interests in mind. Some unscrupulous preparers may file fake returns or delay processes to hold onto your refund. By submitting your return as soon as possible and yourself, you can avoid such issues.

Conclusion

When it comes to tax refunds, patience and promptness are key. While you cannot control the IRS workload or the complexity of your return, you can take steps to ensure that your return is submitted as soon as possible and is accurate. By doing so, you can take advantage of the "free" money that is sitting in the IRS and accelerate the process.