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It’s official: Tax season is open for individual filers and the IRS has started to process 2024 tax returns.
If you’re expecting a refund, there are key things to know, according to tax experts.
“There are some very simple tips to get the fastest refund possible,” said Mark Steber, chief tax information officer of Jackson Hewitt Tax Services.
For most filers, the federal tax deadline this year is April 15 for returns and balances. The agency expects more than 140 million individual returns before the due date.
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Typically, you’ll receive a tax refund if you overpaid taxes the previous year. But you could owe money if you didn’t withhold enough from your paycheck or didn’t make payments throughout the year.
As of Dec. 27, the average refund was $3,138 for the 2024 filing season, which was slightly lower than 2023, according to the IRS.
How to get a faster tax refund
If you’re eager for your refund, the best way to speed up the process is by filing electronically and picking direct deposit for your payment, former IRS Commissioner Danny Werfel said during a press call in early January.
“Nine out of 10 taxpayers will see their refund within 21 days, and often sooner,” he said.
You can check the refund status of your current-year, electronic filing with the IRS 24 hours after submitting your return.
Paper refund checks are 16 times more likely to have an issue, such as theft or misdirection, according to the U.S. Department of the Treasury’s Bureau of the Fiscal Service.
However, it’s also important to enter banking details correctly when selecting direct deposit for payment, experts say. You should always double-check routing and account numbers.
During fiscal year 2023, more than 90% of individual taxpayers filed electronically, the IRS reported.
You need a ‘complete and accurate’ return
While many taxpayers are itching to file early, it’s important to wait until you have all the necessary tax forms, according to Elizabeth Young, director of tax practice and ethics for the American Institute of Certified Public Accountants.
You want a “complete and accurate tax return,” she said. Otherwise, the IRS could flag your filing for mistakes, which causes delays.
While many tax forms arrive in January, others won’t be ready until mid-February to March or later.
Some common tax return errors include missing or inaccurate Social Security numbers, misspelled names, entering information wrong and math mistakes, according to the IRS.