Tax filings open today. Here’s what to know about your 2024 tax refund.
The IRS began accepting tax returns on Monday, kicking off the 2024 tax season with a pledge to better serve taxpayers. For most tax filers, the most important questions are whether they will see a larger tax refund — and how long it will take the IRS to send them their money.
More than half of Americans plan to file their taxes early this year so they can get their refund as soon as possible, according to a new report. New study From Intuit Credit Karma. The average refund check last year was less than $3,200 — the amount that typically represents a family’s largest check of the year.
One of the biggest concerns for taxpayers is the timing of tax refunds, which has become a pain point during the pandemic when millions have been refunded in taxes.. But this tax season, the IRS is taking advantage of billions in new funding provided by the Inflation Reduction Act, allowing it to hire more customer service representatives and improve apps like Where’s My Refund? service.
“The earlier you file, the earlier you get your money,” Mark Steber, chief tax information officer at Jackson Hewitt, told CBS MoneyWatch. “Honestly, there are other benefits to applying early.”
He said that the most important of them is: securing your data from fraudsters. He noted that some scammers try to file their applications early in the tax season by fraudulently using taxpayers’ Social Security and employment data, hoping to claim those refunds before the taxpayers themselves have a chance to file.
Here’s what to know about the 2024 tax season before you file.
When is the 2024 tax filing season?
The IRS has begun accepting tax returnsand will continue to accept federal tax returns through April 15.
Taxpayers in Maine and Massachusetts have until April 17 to file their taxes due to public holidays. People living in Federally declared disaster areas You can also get more time to file.
If you need more time, you can too. This will give you until mid-October to file your tax returns.
When will the IRS issue refunds in 2024?
The IRS says most taxpayers receive their refunds within 21 days.
This means that if you file your taxes on January 29, which is the earliest possible day, you should receive your tax refund by February 19.
However, this is a guideline, not a guarantee, and the tax agency warns that some returns may take longer to review, extending the period beyond 21 days.
It’s also important to understand that the 21-day period applies to people who file their taxes electronically. Paper returns can take much longer to be processed by the IRS.
Can I see the status of my tax refund?
The IRS said Monday it is updating the “Where’s My Refund?” A tool to provide more detail about a taxpayer’s refund, rather than the typical message that returns are being processed and checked back later. The agency said taxpayers will see this season whether the IRS needs more information from them, as well as other details.
What happens with the child tax credit?
Right now, there’s a deal to expand the Child Tax Credit (CTC), which includes the possibility of making some changes retroactive to 2023 — the tax year people currently file for.
This deal can save even moreFor millions of parents.
Should I wait to file my taxes because of the child tax credit?
Tax experts tell CBS MoneyWatch that you shouldn’t put off filing your taxes hoping Congress will greenlight a more generous child tax credit.
“I can say categorically, without question, never wait to file your taxes for potential legislation pending in D.C.,” Steber said. “It’s not a winning formula.”
If the expanded ACA becomes law, retroactive to 2023, the IRS will likely send you a check to make up the difference, Steber noted. A CTC adjustment can affect your tax refund by just a few hundred dollars, which Steber said isn’t worth the delay in receiving your tax refund, which likely represents a much larger amount.
What is the difference between tax brackets for 2023 and 2024?
The IRS has adjusted its tax brackets for inflation for 2023 and 2024.
In 2023, the tax brackets were adjusted upward by about 7% to account for last year’s high inflation. To see those arches,.
The IRS also adjusted its tax brackets upward for 2024, increasing the limits by about 5.4% this year. To see those arches,
Will I get a larger tax refund in 2024?
Some people can seeThis year, with some potentially getting 10% more than the previous year, Steber said.
Taxpayers who receive larger refunds are more likely than workers whose income does not keep up with inflation. For example, if your wages rose 4% last year, that’s less than the IRS’s 7% adjustment to its tax bracket. The difference may result in a larger refund.
About 3 in 4 Americans say they expect to get a tax refund this year, while about 1 in 4 think they’ll get more money in their check from the IRS, Credit Karma found.