7 Tax Refund Myths, Busted: IRS

Slideshow April 13, 2022 at 11:02 AM Share & Print

Your article was successfully shared with the contacts you provided.

Related: 6 Tax Bills in Congress Now

As the April 18 tax-filing deadline closes in for most taxpayers, myths about ways to get information about tax refunds and how to speed one up abound.

The Internal Revenue Service continues to process 2021 tax returns and deliver refunds, with nine out of 10 refunds issued in less than 21 days, the agency reported Tuesday.

As of the week ending April 1, the IRS said it has sent out more than 63 million refunds worth over $204 billion. The average refund is $3,226.

The IRS continues to promote its “Where’s My Refund?” online tool as the easiest way to get information about refund status.

However, a just-released report by the Government Accountability Office says the tool needs to be modernized, as it “provides limited information on refund status and delays.”

Myths tend to circulate on social media every tax season, the IRS said.

See the gallery above for the top seven common myths about tax refunds, according to the IRS.

Melanie Waddell

@Think_MelanieW

NOT FOR REPRINT

Up Next

IRS Warns on Opportunity Zone Fund Filings

View Story

Myth 1: Calling the IRS or visiting an IRS office speeds up a refund.

The best way to check the status of a refund is through the “Where’s My Refund?” tool at IRS.gov or via the IRS2Go mobile app, according to the agency.

Those without internet access can call the automated refund hotline at 800-829-1954. “IRS Taxpayer Assistance Centers operate by appointment and inquiring about a tax refund’s status does not expedite the process,” the IRS says.

(Image: Shutterstock)

Exit

Myth 2: Taxpayers need to wait for their 2020 return to be processed before filing their 2021 return.

Taxpayers generally will not need to wait for their 2020 return to be processed to file for 2021, the IRS says. While it's true that the agency is still working through a backlog of 2020 returns, it's also a myth that all 2021 refunds are delayed until that backlog is cleared.

People with unprocessed 2020 tax returns should enter $0 for 2020 adjusted gross income on their 2021 tax return when electronically filing, according to the agency.

(Image: Adobe Stock)

Exit

Myth 3: Taxpayers can get a refund date by ordering a tax transcript.

“Ordering a tax transcript will not inform taxpayers of the timing of their tax refund, nor will it speed up a refund being processed,” according to the agency. “Taxpayers can use a transcript to validate past income and tax filing status for mortgage, student and small business loan applications and to help with tax preparation. But the ‘Where’s My Refund?’ tool is the fastest and most accurate way to check the status of a refund.”

(Image: Adobe Stock)

Exit

Myth 4: ‘Where’s My Refund?’ must be wrong because there’s no deposit date yet.

“While the IRS issues most refunds in less than 21 days, it’s possible a refund may take longer for a variety of reasons, including when a return is incomplete or needs further review,” according to the agency. “Delays can be caused by simple errors like an incomplete return, transposed numbers or when a tax return is affected by identity theft or fraud. The irs.gov/refunds tool only updates data once a day — usually overnight.”

(Image: Shutterstock)

Exit

Myth 5: “Where’s My Refund?” must be wrong because a refund amount is less than expected.

A variety of factors can cause a tax refund to be larger or smaller than expected, including “corrections to any Recovery Rebate Credit or Child Tax Credit amounts, delinquent federal taxes or state taxes and past due child support,” according to the agency. “The IRS will mail the taxpayer a letter of explanation if these adjustments are made. The Treasury Department’s Bureau of the Fiscal Service may also send a letter if all or part of a taxpayer’s refund was used to pay certain financial obligations.”

(Image: Adobe Stock)

Exit

Myth 6: Calling a tax professional will provide a better refund date.

“Tax professionals cannot move up a refund date nor do they have access to any ‘special’ information that will provide a more accurate refund date,” the IRS says.

(Image: Adobe Stock)

Exit

Myth 7: Getting a refund this year means there's no need to adjust tax withholding for 2022.

The IRS urges taxpayers to continually check their withholding and adjust as needed.

“Adjusting tax withholding with an employer is easy, and using the Tax Withholding Estimator tool can help taxpayers determine if they are withholding the right amount from their paycheck,” according to the agency. “Taxpayers who experience a life event like marriage or divorce, childbirth, an adoption, home purchase or major income change are encouraged to check their withholding. Withholding takes place throughout the year, so it’s better to take this step as soon as possible.”

(Image: Shutterstock)

Choose your next slideshow ...

Exit