Tax season can be one of the most stressful times of the year, but for those anticipating a refund, there’s something to look forward to. Many people rely on this money to help fund a significant purchase, pay down debt, or save for the future. However, understanding how income tax refunds work can be challenging. Below are the answers to some of the most common questions people have.

What You Need to Know About Tax Refunds

What’s the best way to check on the status of my refund?

Once you file your income tax return, the IRS’s online tool Where’s My Refund? will offer the most accurate information regarding its status. It updates daily to show the refund’s current stage of the process. Calling the IRS or your tax professional won’t provide you with any new details, and often, they don’t have the latest update.

What’s the difference between “return received” and “refund approved”?

When you check the Where’s My Refund? tool, you’ll see that there are three steps through which your refund must go before reaching you. The first is “return received,” which means the IRS is able to process the tax return you filed. The second is “refund approved,” meaning the IRS has approved you to receive a refund. The third step is complete when you receive your direct deposit or mailed check.

When can I expect to receive my refund?

Most taxpayers are issued their refunds within 21 days of filing electronically or four weeks after mailing in their income tax return. However, it can take longer if the IRS’s anti-fraud filters unnecessarily flag your return, or a review reveals a mistake.

Why is my refund amount less than expected?

Although you submit your tax return with a specific refund amount in mind, there’s a chance you could be issued a lesser payment. This can happen as the result of calculation errors or because you have past-due financial obligations, such as back taxes, child support, or student loans. The IRS will subtract what you owe from your refund and send you the remaining amount.

Whether you have yet to prepare your income tax return this year or you’re ready to start planning for next tax season, the professionals at Lance S. Cox, Attorney at Law, will help. They have a CPA on staff and a skilled team of taxation lawyers with in-depth knowledge of current tax laws and IRS audit practices. Backed by more than 30 years of experience, the Cincinnati, OH, firm is qualified to advise clients on effective tax strategies for maximizing refunds and minimizing liabilities. Call (513) 528-6000 to schedule a consultation, and visit their website for more information on the services they offer.