2024 Tax Refund Pile up 1-1-26

Reports indicate that while most 2024 tax refunds were issued within the typical 21-day timeframe, individual delays were common and often caused by errors on the return, identity verification issues, or claiming specific tax credits. The IRS did not announce a systemic "late" refund season in 2024, but rather pointed to return-specific processing factors.  

Common Reasons for Delays

The primary reasons individual U.S. tax refunds were delayed in 2024 generally fell into the following categories: 

Errors or Incomplete Information: Simple mistakes were a leading cause of delays. These included mathematical errors, missing information (like Social Security numbers), a forgotten signature, or incorrect bank account/routing information for direct deposit.

Identity Theft and Fraud Review: If the IRS suspected identity theft or fraud, it placed a hold on the refund to conduct additional verification, which could last for weeks or months. The IRS sent letters in these cases, such as Letter 5071C, to verify identity.

Claiming Certain Credits: Returns claiming the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) are legally subject to additional review, meaning the IRS could not, by law, issue these refunds before mid-February.

Mismatched Information: If the income, deductions, or credits reported by the taxpayer did not match the information the IRS received from employers and third parties (like W-2s or 1099s), the return was flagged for manual review.

Filing Method: Paper returns take significantly longer to process (up to several weeks or more) compared to electronically filed returns, as they require manual data entry.

Outstanding Debts (Offsets): The IRS applied refunds to past-due debts (e.g., federal or state taxes, child support, student loans) through the Treasury Offset Program, reducing or delaying the expected refund amount.

Amended Returns: Filing an amended return (Form 1040-X) resulted in a much longer processing time, typically 8 to 16 weeks or more.

Form 8379, Injured Spouse Allocation: Including this specific form to claim a portion of a joint refund when the other spouse has outstanding debts could also cause a processing delay of up to 14 weeks. 

How to Check Your Refund Status

Taxpayers can use the official Where's My Refund? tool on the IRS website or the IRS2Go app to track the status of their refund. The tool provides a personalized date after the return is processed and a refund is approved. The IRS generally only recommends calling them if the tool directs you to do so or if it has been more than 21 days since you e-filed (six weeks for paper returns). 

For the 2024 tax season (returns filed in early 2025), several specific factors have caused delays in U.S. federal tax refunds: 

Legislative and Systemic Factors

PATH Act Credit Reviews: By law, the IRS cannot issue refunds for returns claiming the Earned Income

Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) before mid-February. This allows the agency more time to detect and prevent fraud.

Increased Scrutiny of High-Risk Credits: The IRS has increased its focus on "frivolous" or high-risk credits. For example, a significant number of taxpayers faced freezes in 2024 due to enhanced screening of specific claims.

Verification and Fraud Prevention: Ongoing efforts to combat identity theft require additional verification steps. If a return is flagged, the IRS may send Letter 5071C requiring the taxpayer to verify their identity before the refund is released. 

Common Filing Errors

Mismatched Data: Discrepancies between the income reported on your return and the information the IRS received from employers (via W-2s or 1099s) will trigger a manual review.

Digital Asset Questions: Leaving the question regarding digital assets on Page 1 of Form 1040 blank can cause a processing delay; it must be answered "yes" or "no".

Missing or Incomplete Forms: Failure to include necessary schedules or forms, such as those for claiming energy credits or certain tax breaks, requires manual intervention.

Injured Spouse Allocation: If you filed Form 8379 (Injured Spouse Allocation), processing can take up to 14 weeks. 

Logistical and External Delays

Paper Returns: Filing a paper return significantly extends wait times, as these must be manually entered into IRS systems. In 2025, it can take up to four weeks for the IRS to even acknowledge receipt of a paper return.

Debt Offsets: If you have outstanding federal or state debts (such as back child support, student loans, or unpaid taxes), the Treasury Offset Program may reduce or hold your refund to satisfy these obligations.

Bank Processing Times: Even after the IRS releases funds, individual bank or credit union policies can delay the final deposit into your account, especially around holidays or weekends. 

To check your specific status, use the official IRS "Where's My Refund?" tool.

https://www.google.com/search?q=what+were+the+reasons+why+2024+us+tax+refunds+are+late

Norb Leahy, Dunwoody GA Tea Party Leader