Your tax refund: timing, refund advances and scams

For many families, the tax refund is the biggest check of the year, which is also why scammers and expensive “advances” target it. This guide is for you if you are waiting for your refund: it explains how long it takes according to the IRS, where to check it, what preparers’ advances and refund checks cost, how to spot a “ghost” preparer and what to do if someone kept your money.

The typical time for a refund from the date you e-file, according to the IRS

3 weeks¹

A refund claiming the EITC or the additional child tax credit does not arrive before then

Mid-February²

What a refund anticipation check (RAC) typically costs, without making the refund arrive sooner

$30 to $50³

How long your refund takes

The IRS gives typical times based on how you filed: about 3 weeks from the date you e-file, and 6 weeks or more from the date it receives your mailed return. It can take longer if your return needs corrections or review.¹

The CFPB explains that e-filing and choosing direct deposit is the fastest way: with direct deposit, the IRS issues more than nine out of ten refunds in less than 21 days. The IRS no longer mails paper checks to most taxpayers. If you do not have a bank account, a prepaid card that accepts direct deposit can receive the refund; get its routing and account numbers first.³ The guide on low-fee bank accounts (Bank On) explains low-cost options.

Why is it delayed? According to the IRS, because of common mistakes, such as forgetting to sign or a math error; an amended return; an injured spouse relief request; or the credits you claim.¹ And there is a rule many families do not know: if you claim the Earned Income Tax Credit (EITC) or the additional child tax credit (ACTC), the IRS cannot issue your refund before mid-February, and that applies to the entire refund, not just the part from those credits.² The guide on the EITC and the child tax credit explains who can claim them.

From your return to your account

1. 1. You e-file with direct deposit

   The day you file

   It is the fastest way to get your refund.³

2. 2. You can see the status

   24 hours later

   In Where's My Refund, the IRS app or at 800-829-1954.¹

3. 3. If you claim the EITC or ACTC, you wait

   Until mid-February

   The IRS cannot issue that refund earlier, not even part of it.²

4. 4. The refund arrives

   Typically at 3 weeks

   On paper, 6 weeks or more from the date the IRS receives the return.¹

Where to check your refund

The IRS tool for this is Where’s My Refund. Your refund status shows up 24 hours after you e-file a current-year return, 3 days after you e-file a prior-year return and 4 weeks after you mail a paper return. You check it in your IRS online account, without signing in through the refund tracker, with the IRS app or on the automated line at 800-829-1954.¹

To check without signing in you need four pieces of information from your return: the exact refund amount, your Social Security number or ITINITIN (Individual Taxpayer Identification Number)An ITIN is a nine-digit number the IRS, the federal tax agency, issues to people who need a U.S. taxpayer identification number to file taxes and are not eligible for a Social Security number. It is for tax purposes only: it does not authorize you to work in the United States, does not qualify you for Social Security benefits or the Earned Income Tax Credit, and says nothing about your immigration status. You apply with Form W-7, and it expires if it goes unused for several years. Some lenders accept an ITIN for a mortgage.See the full definitionClose, your filing status and the tax year.¹ The service updates once a day, so checking every hour gains you nothing.²

Did less arrive than you expected? The IRS can reduce your refund to pay taxes you owed from prior years, or past-due debts such as child support, a federal agency debt that is not taxes, or state income tax. The Bureau of the Fiscal Service, which issues refunds, mails you a notice.¹

Was your check lost? Once the processing time has passed (the check should arrive within 4 weeks of the date it is issued), you can request a trace. If you filed single, married filing separately or head of household, you request it through the refund tracker, the app or at 800-829-1954. If you filed jointly, at 800-829-1040 or with Form 3911. If the check was already cashed, the Bureau of the Fiscal Service mails you a claim package with a copy of the check.¹

Refund advances and refund checks: what they cost

If you go to a fee-based preparer, they may offer you one of these two products. They are not the IRS refund: they are services of the preparer or its bank.

The refund anticipation check (RAC). According to the CFPB, it lets you pay the preparer’s fee out of your refund instead of upfront. When your refund arrives, the preparer takes out the RAC fee, the filing fee and its other fees. A RAC does not make your refund arrive faster, and its fees typically range from $30 to $50.³

The refund advance loan (RAL). Some preparers call it a tax refund advance. It is a loan for part of the refund you expect: the preparer lends you the money and, once the IRS sends your refund to the preparer, you receive what is left minus the loan fee and other fees. Some firms offer it with no fees or interest and others charge fees and interest. Because the IRS issues most e-filed refunds in less than 21 days, you could pay a big fee for a very short advance.³

The most important part is in the fine print. The CFPB warns that if your refund is less than what you borrowed, or it does not arrive, you still have to repay the loan to the preparer. And the fee for preparing your return is separate. Waiting a week or two can save you money.⁴

Three ways to receive the same refund

No middleman

IRS direct deposit

• The fastest way to get your refund.³
• More than nine out of ten arrive in less than 21 days.³
• Also to a prepaid card that accepts direct deposit.³

You pay the preparer from your refund

Refund anticipation check (RAC)

• Typically costs $30 to $50.³
• The preparer takes out its fees before giving you the rest.³
• It does not make the refund arrive faster.³

A loan against your refund

Refund advance loan (RAL)

• Some charge fees and interest.³
• If your refund comes in lower, you still repay it.⁴
• The preparation fee is separate.⁴

If you can wait a few weeks, direct deposit gives you the whole refund with no preparer fees.⁴

Example with real numbers

If the refund comes in lower than the advance

An example in words of how a refund advance loan is repaid, according to the CFPB.

What you borrow

Part of the refund the preparer estimated

When the IRS sends the refund

It goes to the preparer, who takes out the loan and its fees

If the refund comes in lower or does not arrive

You still owe the preparer the loan

The fee for preparing the return

It is separate from the loan

What you save by waiting

The loan fees; most e-filed refunds arrive in less than 21 days

That is how the CFPB guide³ and its handout on tax refund products explain it.⁴

Run it with your numbersFamily budget

Some preparers also offer to load the refund onto a prepaid card. The CFPB says their fees vary widely and that many charge for out-of-network ATMs.⁴ If what you need is money now, the guide on payday loans and their alternatives compares other options.

How to spot a ghost preparer

The IRS calls someone a “ghost” preparer when they prepare your return but refuse to sign it or to enter their Preparer Tax Identification Number (PTIN). Paid preparers must sign and include a valid PTIN on every return. Not doing so is a major red flag, because you are legally responsible for what is filed. These preparers often promise big refunds, exaggerate your deductions, claim credits you do not qualify for and disappear afterward, leaving you with the penalties, interest or audits.⁶

The IRS also gives signs for choosing a preparer well:⁷

• Be wary of anyone who says they can get you a bigger refund than others.
• Avoid anyone who charges a percentage of your refund or wants to deposit your refund into their accounts.
• Use someone who enters their PTIN, signs the return and gives you a copy.
• Never sign a blank form.
• A good preparer asks to see your records and receipts, and asks you questions.

Anyone with a PTIN can charge to prepare returns, but not everyone has the same training. The IRS has a directory of preparers in your area with IRS-recognized credentials.⁸ And only attorneys, certified public accountants (CPAs) and enrolled agents can represent you before the IRS in all matters.⁷

Another sign the IRS mentions: a preparer should not file your return using your last pay stub instead of the official Form W-2Form W-2Form W-2 (Wage and Tax Statement) is the document your employer must prepare for each employee. It shows the wages you were paid and the taxes withheld from your pay, such as income tax and Social Security and Medicare taxes. The employer files it with the government and sends you a copy, on paper or electronically, in January or February so you can file your tax return. If it does not arrive or has errors, you first ask your employer to fix it; if you still do not get it, the IRS can help you obtain it.See the full definitionClose, and generally cannot file before receiving your W-2s.⁶ Your documents are yours: the CFPB says a preparer cannot keep your W-2s or your ID to force you to use their service.⁴

Tax-season scams

Every year the IRS publishes its “Dirty Dozen” list of scams. Among those that hit families hardest are emails and texts impersonating the IRS, sometimes with QR codes that lead to fake sites to “verify” your account or “claim” a refund; misleading social media advice that pushes people to claim credits they do not qualify for; a bogus “self-employment tax credit” promotion; schemes to inflate withholding and manufacture a bigger refund; and ghost preparers.⁹

The IRS says it generally contacts you by mail first, and that it does not leave threatening prerecorded messages, call to demand immediate payment or threaten arrest. Suspicious messages are forwarded to phishing@irs.gov, and fraud is reported at IRS.gov/SubmitATip.⁹ The FTC puts it this way: the IRS’s first contact with you will always come by mail, not by phone; do not give your information to an unexpected caller, and use only a phone number found on the IRS website.¹¹ The guide on impostor calls and messages explains how to check whether a call is real.

Tax identity theft. According to the FTC, it is when someone uses your Social Security number and personal information to steal your refund. Many people discover it when they file their return, because the IRS rejects it as a duplicate. If it happens to you, report it at IdentityTheft.gov, or in Spanish at RobodeIdentidad.gov, which can submit the IRS identity theftidentity theftIdentity theft happens when someone uses your personal information without your permission to commit fraud: for example, your name, your Social Security or Medicare number, or your credit card or bank account number. With that information, a thief can rent a home, get credit cards, receive government benefits or tax refunds, or open other accounts in your name. You often find out when your credit report or a statement shows accounts or charges you do not recognize, or when a debt collector calls. The federal site IdentityTheft.gov takes reports and gives you a recovery plan.See the full definitionClose affidavit for you; you can also mail Form 14039.¹⁰

To prevent it, the IRS offers the IP PINIRS Identity Protection PIN (IP PIN)The IP PIN (Identity Protection PIN) is a six-digit number from the IRS that keeps anyone else from filing a tax return with your Social Security number or ITIN. Only you and the IRS know it. Anyone with an SSN or ITIN who can verify their identity can get one: online, by application or in person at an IRS office. It changes every year, and you must use it on every federal return you file that year. The IRS will never ask for your IP PIN by phone, email or text message: that is a scam.See the full definitionClose: a six-digit number that prevents anyone else from filing a return with your Social Security number or ITIN. Only you and the IRS know it, anyone with a Social Security number or ITIN who can verify their identity can request one, and parents can request one for their dependents. The fastest way is your IRS online account; if you cannot open it, there are other options, such as an appointment at an IRS office.¹²

If a preparer kept your refund

The IRS considers it fraud or misconduct when a preparer steals all or part of your refund, diverts it to an account that is not yours, gives you a copy with deposit information that is not yours or a copy that does not match what was filed, or files your return without your knowledge or consent.⁶

If it happened to you, there are two paths, and you can use both:⁶

1. Report the preparer. You do it on the IRS preparer misconduct page, with specific information and your return and papers at hand. If you received Letter 4733 or Letter 6623, it is because the IRS believes a ghost preparer handled your return.
2. Ask to have your account corrected. If you are an individual taxpayer and the preparer altered your data, misdirected your refund or filed without your permission, Form 14157-A asks the IRS to make your account reflect the return you meant to file. It is a separate process from the complaint and requires evidence. If you received no refund or only part of it, get an official police report as well.

If the problem was with an advance, a refund anticipation check or a prepaid card, you can also file a complaint with the CFPB.⁴ And if you already sent money or your information to someone, the guide I was scammed, what now? explains whom to call first.

If this is your situation

You need the money sooner

An advance is a loan you repay even if the refund comes in lower;⁴ with direct deposit, most arrive in less than 21 days.³

You claim the EITC or the child tax credit

Your whole refund does not arrive before mid-February; check Where's My Refund in mid-to-late February.²

You file with an ITIN

You check your refund with your ITIN,¹ and you can request an IP PIN so no one else files with it.¹²

You are paid in cash

A preparer should not file your return with a pay stub instead of the official W-2.⁶

Mistakes that can cost you the refund

• Mistake: Signing a blank return or one you have not reviewed.

  Instead: Never sign a blank form; you are responsible for what is filed.⁶

• Mistake: Letting the refund land in the preparer's account.

  Instead: Avoid anyone who wants to deposit your refund into their accounts.⁷

• Mistake: Accepting an 'instant refund' without reading the terms.

  Instead: Ask whether it is a loan and what it costs; if the refund comes in lower, you still repay it.⁴

• Mistake: Hiring whoever promises the biggest refund.

  Instead: The IRS says to be wary of anyone who claims they can get you more than others.⁷

• Mistake: Opening a link in a text that claims to be from the IRS.

  Instead: Forward suspicious messages to phishing@irs.gov; the IRS generally contacts you by mail first.⁹

• Mistake: Checking your refund on sites that are not the IRS.

  Instead: Use Where's My Refund, the IRS app or 800-829-1954.¹

What to do this week

1. If you have not filed yet, look for a free VITAVITA (free tax preparation)VITA (Volunteer Income Tax Assistance) and TCE (Tax Counseling for the Elderly) are IRS programs that offer free basic tax return preparation by IRS-certified volunteers. They are meant for people with moderate income, people with disabilities and limited-English speakers; TCE focuses on people sixty and older. The IRS sets no program-wide income limit, but individual sites may set their own. Many sites serve in Spanish and help with ITIN applications and renewals. Filing taxes every year builds the record lenders ask for.See the full definitionClose site with the IRS locator or at 800-906-9887.¹³ The guide free tax filing explains what to bring.
2. Have your routing and account numbers ready to request direct deposit.³
3. If you already filed, write down the exact refund amount, your filing status and the year, and check Where’s My Refund.¹
4. Request your IP PIN in your IRS online account.¹²
5. Decide now how much of the refund you will save, with the emergency fund guide and the family budget.