By Aimee Picchi
Edited By Anne Marie Lee
/ CBS News
Tax filing season will start Jan. 29
The IRS started accepting tax returns on Monday, kicking off the 2024 tax season with a pledge to provide better service for taxpayers. For most tax filers, the top questions are whether they'll see a bigger tax refund — and how long will it 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 hands on their refund as soon as possible, according to a new study from Intuit Credit Karma. The average refund check last year was just shy of $3,200 — an amount that typically represents a family's biggest check of the year.
One of taxpayers' biggest concerns is the timing of their tax refund, something that became a pain point during the pandemic when millions of refunds weredelayed by IRS backlogs. But this tax season, the IRS is tapping billions in new funding provided by the Inflation Reduction Act, allowing it to hire more customer service reps and improve apps like its "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. "Frankly, there are other benefits to filing early."
Chief among them: Locking up your data from fraudsters, he said. Some scammers try to file early in the tax season by fraudulently using taxpayers' Social Security and work data, hoping to claim those refunds before the taxpayers themselves have had a chance to file, he noted.
In an interview with CBS News, IRS Commissioner Danny Werfel said the agency's goal is to make sure the tax season goes smoothly for taxpayers.
"Our goal is accurate tax returns. We really don't have a bias in terms of how much you owe or you don't," Werfel told CBS. "We're excited when we have the ability to issue refunds."
He added, "I believe this year the average refund again will be thousands of dollars."
Here's what to know about the 2024 tax season before you file.
When is the 2024 tax filing season?
The IRS started accepting tax returns on January 29, and will continue to accept federal tax returns through April 15.
Taxpayers in Maine and Massachusetts have until April 17 to file their taxes because of state holidays. People living infederally declared disaster areascan also get more time to file.
If you need more time, you can alsoask for a filing extension. That will give you until mid-October to file your tax returns.
When will the IRS issue refunds in 2024?
The IRS says that most taxpayers receive their refunds within 21 days.
That means that if you file your taxes on January 29, the earliest day possible, you should receive your tax refund by February 19.
However, that is a guideline, not a guarantee, and the tax agency warns that some returns may take more time to review, extending the period beyond 21 days.
It's also important to understand that the 21-day turnaround applies to people who file their taxes electronically. Paper returns can take much longer for the IRS to process.
Can I see the status of my tax refund?
The best way to check the status of your refund is to visitWhere's My Refund?online at IRS.gov or on theIRS2Goapp.
The IRS on Monday said that it is updating the "Where's My Refund?" tool to provide more details about a taxpayer's refund, rather than the typical message that the returns are being processed and to check back later. This season, taxpayers will see whether the IRS needs more information from them, as well as other details, the agency said.
What is happening with the Child Tax Credit?
Right now, there is a deal to expand the Child Tax Credit (CTC), which includes the possibility of making some changes retroactive to 2023 — the tax year that people are currently filing for.
That deal could provide a more generous refund amount to millions of parents.
Should I wait to file my taxes due to the Child Tax Credit?
Tax experts tell CBS MoneyWatch that you shouldn't hold off on filing your taxes in the hope that Congress will greenlight a more generous Child Tax Credit.
"I can emphatically say, without a question, never wait to file your taxes for possible pending D.C. legislation," Steber said. "It's just not an equation that works."
If the expanded CTC becomes law and is retroactive to 2023, the IRS will likely send you a check to make up the difference, Steber noted. And the CTC tweak could impact your tax refund by only a few hundred dollars, which Steber said isn't worth a delay in receiving your tax refund, which will likely represent a much bigger amount.
What is different with 2023 and 2024 tax brackets?
The IRS has adjusted its tax brackets for inflation for both 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 brackets, click here.
The IRS also adjusted its tax brackets upward for 2024, pushing the limits by about 5.4% higher this year. To see those brackets, click here.
Will I get a bigger tax refund in 2024?
Some people could see bigger refunds this year, with some potentially receiving 10% more than a year earlier, Steber said.
Those taxpayers receiving bigger refunds are most likely to be workers whose income didn't keep up with inflation. For instance, if your wages rose 4% last year, that's below the 7% IRS adjustment to its tax brackets. The difference could result in a bigger refund.
About 3 in 4 Americans say they expect to receive a tax refund this year, while about 1 in 4 believe that they'll get more money in their check from the IRS, Credit Karma found.
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Aimee Picchi
Aimee Picchi is the associate managing editor for CBS MoneyWatch, where she covers business and personal finance. She previously worked at Bloomberg News and has written for national news outlets including USA Today and Consumer Reports.
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As an expert and enthusiast, I have access to a wide range of information and can provide insights on various topics. While I don't have personal experiences or emotions like a human, I can provide factual information and answer questions based on available sources.
Regarding the concepts mentioned in the article you provided, here's some information related to each concept:
Tax Filing Season:
The tax filing season for 2024 started on January 29, according to the IRS Taxpayers have until April 15 to file their federal tax returns, although taxpayers in Maine and Massachusetts have until April 17 due to state holidays Additionally, people living in federally declared disaster areas may also get more time to file If you need more time, you can request a filing extension, which will give you until mid-October to file your tax returns.
Tax Refunds and Timing:
Many taxpayers are interested in the timing of their tax refunds. The IRS says that most taxpayers receive their refunds within 21 days If you file your taxes on January 29, the earliest day possible, you should receive your tax refund by February 19 However, it's important to note that the 21-day turnaround is a guideline, not a guarantee, and some returns may take longer to review, extending the period beyond 21 days It's worth mentioning that the 21-day turnaround applies to people who file their taxes electronically, while paper returns can take longer for the IRS to process.
"Where's My Refund?" Service:
The IRS provides an online tool called "Where's My Refund?" that allows taxpayers to check the status of their refund Taxpayers can visit the IRS website or use the IRS2Go app to access this tool This tax season, the IRS is updating the tool to provide more details about a taxpayer's refund, including whether the IRS needs more information from them.
Child Tax Credit:
There is a deal to expand the Child Tax Credit (CTC), which includes the possibility of making some changes retroactive to 2023 If the expanded CTC becomes law and is retroactive to 2023, the IRS will likely send a check to make up the difference for eligible parents However, tax experts advise against waiting to file taxes in the hope of pending legislation, as it's not a reliable strategy The impact of the CTC tweak on a tax refund may only be a few hundred dollars, which may not be worth delaying the receipt of a larger tax refund.
2023 and 2024 Tax Brackets:
The IRS has adjusted its tax brackets for inflation for both 2023 and 2024 In 2023, the tax brackets were adjusted upward by about 7% to account for high inflation The IRS also adjusted the tax brackets upward for 2024, pushing the limits about 5.4% higher this year These adjustments may result in some people seeing bigger refunds this year, especially if their income didn't keep up with inflation.
Please note that the information provided above is based on the article you shared and may not cover all aspects of each concept. If you have any specific questions or need further clarification, feel free to ask!
