10 Most Likely Reasons Your Tax Refund Might Be Delayed This Year

Many taxpayers who file a return rely on a big refund from the federal government. Knowing you will receive this money can dramatically lower your financial stress.

On the other hand, a delay in your return can cause a big headache. Many factors can cause the IRS to fail to process your return promptly. Here are 10 reasons why your tax refund might be delayed this year.

It's easy to make simple mistakes while filing your return, especially if you're not using tax software — or a tax professional — to flag the errors.

Such issues might include misspelling your name, entering an incorrect Social Security number or the wrong filing status, or making math mistakes on the return.

These errors make it difficult to file your return correctly, and the IRS may send it back to you.

If your return lacks large swaths of information, it will not be processed on time.

For example, some people forget to include copies of W-2 or 1099 forms. Others do not fill out other relevant forms and schedules. These mistakes can delay the processing of your return.

The IRS takes a closer look at returns that claim certain types of credits. The agency notes that your refund might be delayed if you claim the earned income tax credit or additional child tax credit.

You may also experience a delay if you file Form 8379, Injured Spouse Allocation, according to the IRS.

There may be a delay in your refund if you have been a victim of identity theft or fraudulent activity.

Identity thieves can steal your identity and file a fake return in your name. So, the IRS needs to verify your identity and make sure the return is legitimate. This can delay your refund by weeks or longer.

Getting your tax refund transferred directly into your bank account is the easiest and quickest way to access your money. However, if you provide the IRS with the wrong banking information, it can delay the refund.

In such situations, the IRS will likely send you a paper check.

Some banks take longer than others to process direct deposits. Holidays and weekends can also slow the process.

If your financial institution does not process things quickly, you might have to wait a bit longer for your refund.

When you file electronically and use direct deposit, the IRS typically can issue a refund in 21 days or less.

While it's still possible to fill out your tax forms by hand and mail the documents to the IRS, doing so will delay processing. The wait time for a paper return to be processed is around four weeks, so it can take a while for the IRS to issue a refund and send you the check.

If you owe the government money in the form of unpaid taxes or other debts, you will be issued a reduced refund. The IRS will first take the money from your refund before issuing what remains to you. This can delay your payment.

Some debts fall under the Treasury Offset Program, and the IRS is allowed to collect them from your refund. Delinquent state taxes, unemployment compensation repayments, past-due child support, and other federal agency payments all fall under the program.

If you're behind in your income tax filings from previous years, the IRS can freeze any refunds you might be entitled to until your returns are up to date.

The only way to fix this issue is to file a past-due return and pay whatever penalties and back taxes you owe.

If you're currently being audited for a return from a previous year, the IRS will halt any tax refunds until the investigation is completed.

If you quickly respond to the audit requests, the IRS can conduct its audit in about six months. Then, your current-year refund will be processed and sent to you.

Completing a tax return is already a stressful experience, so filing an improper return is something to avoid if you hope to get your return quickly and keep more money in your wallet.

By avoiding the mistakes on this list, you can get your refund on time so you can focus on your other financial goals for the year.