The Difference Between Federal Accepted and Approved Tax Returns
Posted on January 31, 2023 in Money
The difference between accepted and approved federal tax returns is that accepted means your tax return is now in the hands of the government and has passed the initial inspection (your verification information is correct, dependents haven’t already been claimed by someone else, etc.). Following acceptance, the government must approve your refund.
Table of contents
- What does it mean if my Tax Return is Accepted?
- What does it mean if my Tax Return is Approved?
- What’s the Difference Between Accepted and Approved?
- How long will it take to get my Tax Refund?
- Should I call the IRS?
- How to Maximize your W-2
- Spending a Tax Refund Effectively
- FAQ’s Regarding The Difference Between Federal Accepted and Approved Tax Returns
You filed your federal tax return early, and now you’re wondering where your refund is. So you go online to check. To your surprise, the status says “Accepted” but not the “Approved” you were hoping for. So today, we’re going over the in’s and outs of “Accepted” and “Approved” Tax returns, and help you fully understand the difference between federal accepted and approved tax returns mean.
When the IRS accepts your Tax Return, it means that they’ve reviewed your return and it has passed the initial inspection process. They’ll verify your personal information and basic things like if the dependents you’ve claimed have been claimed by someone else.
When your Tax Return is approved, your refund has been reviewed, and the IRS is ready to send your refund or has already sent it.
Once you see the status “Accepted,” this indicates that the IRS got your information and has started the initial screening process to ensure everything is correct and in order. Then once the screening process is over, it will move to the “Approved” category, indicating that your Tax Return has been sent or getting ready to be sent.
For many Americans, their income tax return is a big deal in making some financial decisions, and you’re probably curious about when you will get yours. The speed at which you get your tax refund can vary on multiple factors, such as the accuracy of the information in your federal and state income tax return, how and when you file your tax return, and how you choose to receive your refund.
For most, when you submit online, you can expect to receive your refund within 21 days. If you are to send your return in the mail, you can expect your refund in 6 weeks to 8 weeks from the time the IRS receives your return. Keep in mind when mailing, it could take anywhere from a couple of extra days to a few weeks later than if you were to direct deposit. This is due to transit time.
The IRS suggests that you don’t call them. It can take up to 21 days for your filing status to go from Accepted to Approved. When you call the IRS, the people you are on the phone with are not the same people who are updating your tax status. It’s best to be patient and wait one month for them to issue your refund. If you’re concerned about the status of your tax refund, the best place to go is “Where’s my refund?”.
When people expect a huge tax refund on their W-2, it’s normally because they’ve listed fewer independents than they typically have. Financial experts advise against this because you’re leaving money for the federal government. Here’s an example. A family of 5 might claim just two dependents to ensure that he gets a refund and doesn’t owe any money.
Since Social Security and Medicare taxes increased this year to 6.2%, you might see a decrease in your paycheck. To offset this, a family of 5 could claim 5 people, and while their tax refund wouldn’t be great the following year, they would have more money to spend in that year’s time span.
When it comes to a big tax refund, some people may be tempted to go out and buy big items or use the money irresponsibly. Financial experts say that you should save or invest the money you receive in your tax returns. The best way to use the money is to pay off any debts you may have incurred throughout the year. Credit card debt is the first type of debt you should be looking to pay off. In the long run, $5,000 with an interest rate of 30% is not a pretty sight.
The best thing you can do with your tax refund is to use it responsibly and learn how to spend money wisely. Use it on life savings, start an emergency fund, add it to your retirement savings, or start a business if you’re feeling good. The best thing you can do is to help your future self with your tax refund.
FAQ’s Regarding The Difference Between Federal Accepted and Approved Tax Returns
From the time it says “Accepted” to “Approved,” it can take up to a couple of days. (usually) There are a few exceptions to this.
- The first and most common errors are inaccurate or missing information, simple math errors, or missing signatures or attachments.
- Taxpayers who claim they earn income tax credit (EITC) or child tax credit (CTC) may also experience delays even if their returns are filed correctly. Claiming these credits can slow down the process because it will give the IRS time to deal with any fraudulent charges.
As we went over, “Accepted” means that it’s out of your hands and into the government’s hands. The first thing they look at before approving your refund is to look at things like unpaid back taxes or unpaid child support. If they find any outstanding debt, they can often reduce the amount of your refund to cover the outstanding amount.
Once they have satisfied that you have no outstanding debt, they will approve and send you a refund.
When filing taxes, it’s important that you stick to the strict set of rules that the IRS implements. If no rules or regulations are broken, the IRS can not reject a refund once it has been accepted.
When a tax refund is approved, this means that the IRS has processed your return and approved your refund. The IRS will now directly deposit your refund in your bank account or if specially requested, send your refund in the mail.
The IRS now issues refunds every business day. Monday – Friday (Holidays are Exceptions) Due to the IRS auditing system changes, they no longer adhere to a schedule as they did in previous years.
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