Tax Experts Share the 9 Things That Could Delay Your Refund

As tax-filing season gets into full swing, the wrong move could end up delaying your tax refund. Tax professionals say there are some common mistakes people make that result in getting a payment later.

If you are trying to get ahead financially, you probably want to receive your refund sooner rather than later. Here are some common things — both within and beyond your control — that cause a delayed tax refund, according to tax experts.

You still have the option to file with a paper return. But e-filing usually means a faster turnaround.

"Not only does an electronically filed return get to the IRS faster than a paper-filed one — instantly, rather than in the course of a few days — but the IRS also processes electronic returns much faster than paper-filed ones," says Logan Allec, a certified public accountant and owner of Choice Tax Relief.

Allec notes that the IRS "explicitly states" that refund processing typically takes up to 21 days for an e-filed return. By contrast, expect to wait four weeks or more for a refund tied to a paper return.

If you want your tax refund in the form of a physical check, you'll likely have to wait longer to receive the funds.

"If you choose to receive your refund by a check in the mail, your refund will generally take longer to get to you than if you had elected to have it direct-deposited," Allec says.

It's a worst-case scenario in the minds of many taxpayers: Someone steals your identity and files a return in your name so they can accept your tax refund.

Kevin Knull, a Certified Financial Planner and CEO of TaxStatus, says this type of fraud is indeed a risk for taxpayers. However, you can lower your risk of such fraud by taking a key step.

"The earlier a legitimate return is filed, the less opportunity there is for criminals to submit a fraudulent one in its place," he says.

In fact, Knull believes that "it has never been more vital for taxpayers to file taxes as early as possible." Doing so can help you avoid the delay of — and possible loss of — a refund, he says.

When you claim specific types of tax credits, it might slow down the return process, says Thomas Brock, a Chartered Financial Analyst, certified public accountant, and contributor to Annuity.org.

"Claiming certain credits — such as the earned income tax credit (EITC) and the additional child tax credit (ACTC) — can result in delays due to mandated fraud-prevention reviews," Brock says.

A small mistake can have a big impact on the time it takes to receive your tax refund.

"If you make a mathematical mistake on your return, the IRS may catch it and either recalculate your return itself — which delays the processing of your return — or, less commonly, send you a notice asking you to fix the return," Allec says.

Clerical errors also can delay the processing of your return. These might include misspelling a name or inputting a Social Security number, bank account routing number, or account number incorrectly.

A delay in the processing of your return could mean your refund also arrives less promptly.

The IRS has to sort through millions of tax returns, which means a backlog can pile up and cause delays.

"The IRS has had years of backlogs from pandemic-era slowdowns, staffing shortages, and system updates," says Paul Carlson, a certified public accountant and managing partner at Law Firm Velocity.

If you filed a paper return instead of e-filing, expect a much longer wait, since paper returns still get manually processed, Carlson says.

"Even if you e-filed, if there's a general backlog, your refund might just be sitting in the queue longer than usual," he says.

It can be difficult to keep up with all of the forms that are necessary when filing a return. But if you accidentally omit a form, it could lead to trouble that will cause a delay in your refund.

Allec says that if you forget to include a required form in your return, the IRS will send you a notice requesting you to supply the form.

"This obviously takes more time, because the IRS cannot finish processing your return and issuing your refund until you provide the form," he says.

The IRS can flag your return for a multitude of reasons. But any flag on your return means you may face a delay of your refund.

"If your return gets flagged for potential identity theft, the IRS won't process it until you verify your identity," says Carlson.

This means waiting for a letter, and then calling the IRS or visiting an IRS office.

"This happens a lot if you've been a victim of fraud before, moved recently, or the IRS sees something that looks off," Carlson says. "It could be a sudden change in income or deductions."

As you earn money and start to build wealth, you'll have to pay taxes along the way. When you get your tax return, consider using it to accomplish a financial goal.

For example, you might pay down debt, build your emergency savings, or invest it for the future.

Whatever you decide to do with the money, getting your refund promptly can start you on the journey to a better financial future.