IRS Refund Schedule 2016

If you’re relying on an IRS refund to cover bills or make a major purchase, it helps to know when you’ll be paid. This post tells you when you can expect the money you are owed. Although the IRS no longer publishes a refund schedule, you can get a good idea of when to expect the money in your account. So again, it’s not an exact science but you can get a pretty good idea. Also note that this post is about federal tax refunds. You may also receive a state tax refund. States usually issue refunds much faster than the federal government. Here’s a list with links to each state’s department of revenue website. From there, you can check on your state refund status if you’ve not already received it.

General Timeline for an IRS Refund

The IRS refund schedule only applies to those who file federal taxes electronically. You can use tax refund software or the IRS E-File website. If you had an accountant file your taxes, it’s almost certain they filed electronically. When you receive a return will depend on when the return was filed. The IRS processes returns once a week, issuing refunds for all the returns received that week before 11 a.m. on Friday. Returns received after 11 a.m. on Friday are processed the following Friday.

Deposits are made 72 business hours (5 days) after each Friday. So, if you e-filed on Monday, February 1, 2016, your deposit would be sent Wednesday, February 10th (the last Friday was February 5th). If you filed after 11 am on Friday, your return would be processed on the 12th, arriving Wednesday, February 17th. Paper checks are issued two days later, or the Friday following the end of each week. Don’t forget that you can choose to have your refund issued in the form of U.S. Savings Bonds too, this is an appropriate long-term savings strategy.

Extensions and Amended Tax Returns

If you are filing after an extension or an amended return, this schedule doesn’t apply. The IRS processes those refunds manually, which can take up to twelve weeks.

Checking on Your Return

If you’re getting nervous about your return, you can check the status after about 72 hours of receiving the e-File confirmation from the IRS. The IRS keeps a page for this purpose, called, “Where’s My Refund?” You can also call 1-800-829-1954, 1-800-829-4477 or 1-800-829-1040 to get the status. The IRS updates the status in its records once a week on Wednesdays.

Is it a good thing to have a tax refund?

Many people view tax refunds as ‘free’ money. But they are actually very far from free. Each time you get a refund, it means you overpaid. It means you have given the government an interest-free loan. However, the opportunity cost is minor. This means you needn’t worry too much. If getting a tax refund is exciting for you, by all means. But if you want to keep this from happening in the future, try to estimate taxes a little better. Many financial advisers will encourage you to owe, rather than receive taxes. Monetarily speaking, no refund is the way to go. But emotionally speaking, a refund may be right for you.