When Can I Expect My Tax Refund? The IRS Refund Schedule for 2020

As soon as you hit the submit button on your taxes, do you instantly start wondering, “When can I expect my tax refund?”

The majority of people hate doing taxes. Taxes are complicated, time-consuming and expensive. But if you think you’re entitled to a tax refund, that can make tax time a little less, well, taxing.

In most years, the tax return deadline is April 15th of the given year. However, with the implications of COVID-19, this year’s tax return deadline is different.

The deadline for getting your tax return filed for 2020 is Wednesday, July 15th. Still, new tax laws may change how you do your taxes. For that reason, it’s important to get started early enough to take those changes into account.

Here’s everything you need to know about when you can expect your tax refund and how to spend your refund money wisely.

Tax Refund Basics: Should I Hire an Accountant or Tax Advisor?

When it comes to filing your taxes, you can choose to file yourself or have an accountant file for you.

If you opt for a tax accountant or CPA, you should expect higher fees than you would with a program like Turbotax. Then again, hiring a professional could be a less stressful route to go. 

If you are filing your taxes on your own, be sure to check out the cheapest ways to file your taxes online.

Outsourcing your taxes to a professional might be a good idea if you have a business. Or, if you plan to itemize deductions, have rental properties or have a combination of these scenarios.

Whether you choose to DIY your taxes or use a tax professional, make sure you file your taxes by the due date. That date is July 15th this year.

If you are unable to file by the deadline, you can request an extension. Nevertheless, you may have to pay interest on any money you owe. 

Once you file your taxes, you may be wondering when you’ll actually get your money. The IRS makes this slightly more complicated than just direct depositing the funds into your bank account.

But know that we’re sharing the actual process of getting your tax refund processed.

When Can I Expect My Tax Refund?

The IRS’s official answer is that you can expect your refund in fewer than 21 calendar days. However, be aware that 21 days starts once your tax return has been approved.

The IRS does not release any formal calendar, but this year, it began taking tax returns on January 27th, 2020. However, if you filed with an Additional Child Tax Credit (ACTC) or Earned Income Tax Credit (EITC), you had to wait to file until February 15th, 2020.

Congress passed a law on this issue to avoid duplicate returns and minimize fraud.  

While there is no formal calendar released by the IRS, here is an estimate on when you can expect to receive your tax refund. This tax refund calendar is based on the 21 days estimated payment cycle. 

IRS Refund Schedule Chart (Estimated)

However, this schedule is a guideline, and the IRS doesn’t have to adhere to it.

Your refund may come sooner or later than the estimated payout dates. But I recommend not making any huge financial plans based on your refund payment date. Remember, you’re dealing with the IRS, and delays can (and do) happen.

Besides your refund payment being delayed, there are a ton of other common tax refund events that can happen. To help explain those events, here are some refund FAQs you might like answers to if your tax refund is deferred.

13 Other Tax Refund FAQs

Below are some of the most common questions people ask about their tax refunds.

1. Is there a place to track my refund online?

Yes, the IRS does have a site to track your refunds online. The Where’s My Refund tool is accessible by computer.

You can also use the IRS2Go Mobile App to track your refund using a smartphone. To start tracking your refund, you will need your Social Security number or TIN. Along with that, you’ll also need to know your filing status and the exact amount of the refund you’re expecting.

The site should have your information within 24 hours of filing your electronic return. But if you send a paper return, it usually takes four weeks after filing for your information to show up on the tracking site.

If your status says received, the IRS has received the return and is processing it. Once the IRS approves your return, it will update your status online and give you an estimated return date.

After your tax refund has been approved, the IRS will direct deposit the funds to your bank account. But, if you didn’t give them bank account information, or if you selected to receive a check, they’ll send you a check instead.

Most direct deposit refunds are completed within two to three business days after your refund is approved. However, they can take up to five days, depending on the institution.

If you opted to receive a check, it takes much longer to process. Usually, it is an additional two weeks, as it is not expedited and is sent without priority mail.

With the Where’s My Refund tool, you can track the entire tax refund process. You can see when your return was received and when the funds were sent to your bank account.

2. What about my state tax refund?

Everything discussed so far is in regards to your federal tax refund. If you have a state tax refund as well, the timeline might be different, as they are separate transactions.

State tax refunds are typically processed within 30 days if you filed electronically. But know that if you filed a paper return, they could take several weeks to process.

You might be wondering if your state has a tool to track your refund like the Where’s My Refund tracker tool. The answer is that some states do, and others don’t.

If you have questions about your state tax refund status, check your state’s department of revenue website or call your state tax agency.

3. I need my refund for an important purchase. Will I really receive it within the suggested 21 days?  

There are a lot of different factors that will affect the timing of when you actually receive your tax refund. While the IRS says it will usually take less than 21 days, it can take longer.

Alternatively, some people receive their refunds quite quickly. However, I wouldn’t count on that.

Personally speaking, I have received most refunds within 13-17 days over the past three years. And the IRS also says that nine out of 10 people receive their refunds within 13 days.

But remember, the payment is delayed with bank holidays and weekends. It will take longer if you choose to receive a paper check instead of direct deposit too.

4. It’s been longer than 21 days. Why haven’t I gotten my refund? Should I contact the IRS?

I would recommend staying patient for a few more days before contacting the IRS. There are several typical reasons for delayed tax returns: 

• There were errors when you filed your return
• Something is incomplete, and the IRS might need more information
• You were victim to identity theft in the past year
• You filed Form 8379 [Injured Spouse Allocation] (This could add 14 days to the time when your tax refund is sent)

If you had an error or the IRS needs more information, they will reach out via mail to ask for more documents and inform you of the next steps.

You can call the IRS at 1-800-829-1954 or 1-800-829-4477 and speak with a representative to learn more about your tax refund.

5. If I call the IRS, will I get my tax refund faster?

From what I’ve read, no, it will not speed up the process. Also, I imagine this would be as much fun as calling about a lost passport or contacting the DMV.

According to the IRS website, they are unable to review the status of your refund until it is at least 21 days after you filed online. And if you filed with mail-in tax forms, they can’t access your refund until six weeks later.

6. What if I entered the wrong routing or bank account number for my refund? Will my tax refund be delayed or not accepted?

I’ve made this error in the past. If you’re even one digit off on an account or routing number for your bank account, the IRS will not be able to direct deposit your tax refund.

Once you’ve submitted your tax return, you can’t edit your information. The IRS will default to sending you a check to the address listed on your return. But note that this process will add a few weeks to your return time.

7. How long does it usually take for my tax refund status to change from “return received” to “refund approved?”

Sometimes a few days, but it could take longer depending on your tax situation.

8. How often is the “Where’s My Refund” tracker updated?

The Where’s My Refund tracker is only updated once per day, typically at night. For that reason, there is no need to refresh the tracker throughout the day.  

9. Will the “Where’s My Refund” tracker work for any amended returns as well?

No, the tracker is only good for regular tax returns, not amended ones. However, there is a separate tracker, Where’s My Amended Return, that lets you track your amended return.

All amended returns are processed manually and take much longer to process than a regular tax return. Because of that, you won’t want to contact the IRS within four months of sending an amended return, as they are unable to access your returns before then.

10. I wanted direct deposit for my tax refund. Why is the IRS sending me a check?  

Although rare, this happens for three main reasons:  

• The account you entered is not in your name or is a joint account with your spouse (Make sure you always have your name spelled correctly and that it matches the exact name on your bank account)
• Your bank or financial institution may reject the direct deposit
• The IRS cannot deposit more than three electronic refunds into one account  

11. Why is my refund different than the amount on the tax return I filed?

If you have past due amounts on specific taxes, all or part of your refund will be used for payments due.

These past-due taxes could include:

• State income tax
• Federal tax
• State unemployment compensation debts
• Spousal support
• Child support
• Federal non-tax debts like student loans

Sometimes the IRS will alter your refund amount if they have made any changes to your taxes. They will alert you in the Where’s My Refund tracker if this happens.

12. What should I do if the refund I receive is not from my tax account?

In some instances, the IRS will make an error and send a check or direct deposit to the wrong recipient. However, if you get an incorrect refund, you don’t want to cash the check or use the money. If this happens to you, follow these steps.

13. If I order a transcript, will that help me find out more details on when I will get my tax refund?

No, a tax transcript will not shed any more light on when you will receive your tax refund. But transcripts are great for keeping for your records and can validate your past income.

They can also help with loan applications for student loans or small business loans. And they can help with future tax returns.

Once you finally receive your tax refund, you might want to spend it all on fun stuff. But there are tons of better ways to spend your tax refund.

6 Great Ways to Spend Your Tax Refund

It’s understandable to feel relieved and excited when you find out you’re getting a nice tax refund. And you may want to celebrate by going out and blowing all of the cash.

But it’s important to not just mindlessly spend the money. Instead, use it to reach your financial goals.

Here are six great ways to spend your tax refund:

1. Create or Increase Your Emergency Fund

Did you know that 52% of the population can’t afford to pay for a $1,000 unexpected expense like a medical bill or car repair without using a credit card? An emergency fund will help you through tough situations and minimize your money-related stress.

For that reason, you might want to put some of your tax refund money into your emergency fund. And if you haven’t started one, now is a perfect time to open an emergency fund.

Be sure to always keep your emergency fund in a high yield savings account as opposed to a CD or retirement account. CD and retirement accounts have fees for withdrawing the money early.

Work your way up to having at least six months’ salary saved in one of these high yield bank accounts.

2. Start Saving for Retirement

Once you have an emergency fund, it’s time to start thinking about your future retirement and investing your money in a retirement account. While you can’t use your tax refund for a 401K as contributions need to come from earned income, opening or contributing to an IRA is another great option.

Thanks to compound interest, the earlier you start investing, the more you will be rewarded in the future.

3. Pay Down Debt

An unexpected tax refund is a great way to make additional payments toward any outstanding debt.

Start paying down debt with the highest interest or highest amount to save tons of money on interest. For more information on paying off debt, be sure to check out our program, Debt Free in 18 Months.

If you do, you’ll learn how Well Kept Wallet founder Deacon Hayes paid off $52,000 in 18 months!

4. Open a 529 College Savings Plan

If you’ve been in debt, I’m sure you don’t want your child to face the average $30,000 worth of student loan debt upon graduation. However, if you open a college savings plan, you can start funding their future education costs.

The best part is that a 529 college savings plan is tax-free as long as the recipient uses the money for college expenses!

5. Start a Side Hustle

Most side hustles are very cheap to start, but there still may be some fees and expenses associated with them. How about using your tax refund to fund your first side hustle and start earning more money outside of your 9-5?

Check out these creative side hustles to start making money today!

6. Enjoy Yourself

If you’re doing one or several of the above tips, use some of the money from your tax refund to enjoy yourself. For example, you could take your spouse to a nice dinner, book a quick weekend getaway, or do something else that your family will enjoy.

Life is all about balance. That means you can reward yourself a bit for paying off debt and saving for your future.

How to Pay Fewer Taxes Next Year

Once you have submitted your taxes, start looking at ways you can pay less in taxes next year. Here are some easy ways to look ahead to next year and pay the lowest taxes possible.

Contribute to Retirement Funds

One of the easiest ways to reduce your taxes is by contributing to a traditional IRA or employer-sponsored 401K.

While there are differences in the two accounts, both will lower your taxable income for the following year. As far as limits go, you can contribute up to $19,500 in a 401K and $6,500 in an IRA for 2020.

If you’re able to max out your 401K and traditional IRA, you will be able to deduct $26,000 from your taxable income! Also, note that those over age 50 can make additional “catch-up” contributions to 401k and IRA accounts too.

However, even if you can only invest $1,000 into a retirement fund, it will help you save money on taxes and start saving for your future. And it all adds up, thanks to the wonder of compound interest.

Get Started Early

The sooner you start and file your taxes, the quicker you will receive your tax refund. Besides, if you get started early, you can take your time and see if it makes sense to itemize deductions or not.

The new tax laws may indeed mean it makes more sense for many people to take the standard deduction and not itemize. However, you might find that you can benefit from itemizing.

Examples of some items you could deduct are job searching expenses, large charitable donations and unreimbursed business expenses.

Summary

Remember, the upcoming tax deadline for 2020 is Wednesday, July 15th. If you can, file your taxes before the deadline or apply for an extension if you are unable to have them completed by that date.

And if you have a complicated situation, a tax accountant might make things easier and save you more in tax breaks.

When it comes to filing your taxes and getting your refund as fast as possible, it’s helpful to file online and choose direct deposit for payment. This option is best because sending in a paper return or requesting a check for payment will add weeks to getting your tax refund.

The IRS’s Where’s My Refund tracking tool and mobile app are great resources for following your tax refund from beginning to end. While you should get your tax refund within 21 days, sometimes it may take longer, and you might need to provide more information.

Make sure you file on time, enter the correct bank account information and avoid contacting the IRS unless it is after the 21-day deadline. 

Before you spend any of your tax refund money, find a way to align it with your current financial goals. Then, evaluate if you need to pay down debt, save up for an emergency fund, invest for retirement or spend some on a fun experience with your family.

What do you plan to do with your tax refund from 2020? Spend, save it or invest it? Let us know in the comments section.