5 Mistakes That Will Delay Your IRS Tax Refund

Taxpayers in 25 states who have relatively simple returns can prepare and e-file their paperwork using tax software developed by the IRS itself under the Direct File program, and some filers with low or moderate incomes can have an IRS-trained volunteer complete and e-file their return through the agency's Volunteer Income Tax Assistance (VITA) program.

2. Requesting a paper refund check

Just as it takes the IRS more time to process a paper tax return, it also takes them more time to send a paper refund check. Plus, it can take several days for a check to reach you via traditional mail.

Direct deposit, on the other hand, takes an instant (although it could take your bank a few days to post the funds to your account). 

If you’re using software to prepare your return, the program will walk you through the steps needed to request direct deposit. If you’re filing a paper return, simply provide the required information on Lines 35b to 35d of your Form 1040.

In some cases, you can have your refund credited to a prepaid debit card or mobile payment app. You’ll need to send a routing and account number to the IRS, which you can get from the financial institution that issued your debit card or the mobile app provider, if they permit tax refund deposits.

There are several other direct deposit options available. For instance, you can have your tax refund deposited directly into an:

• Individual retirement account (IRA)
• Health savings account (HSA)
• Archer medical savings account
• Coverdell education savings account

You can even have your refund split up and deposited into up to three different accounts. Use Form 8888 for this purpose if you’re filing a paper return. Otherwise, your tax software should be able to handle setting up deposits into multiple accounts.

3. Not waiting for all your 1099s or W-2s to arrive

Filing your tax return too soon can also delay your refund. Say you filed shortly after tax season began and then you received a 1099 form for an account you forgot about. Or perhaps you hold multiple jobs and a W-2 arrived after you submitted your return. The problem is that the IRS has already received all your 1099s and W-2s, and thus has different information on your income for the year.

That will likely trigger an IRS CP2000 Notice, a letter telling you the income you reported on your return doesn’t match what the IRS has on file. The notice will propose changes to your return based on the agency’s files and ask you to pay additional taxes, or let you know that the IRS is reducing your refund. You’ll have to complete and sign a response form saying that you either agree with the IRS’s changes or disagree, in which case you’ll need to provide documentation to support your case. While all this is going on, the IRS is sitting on your refund.

Even if you have all your 1099s and W-2s, carefully check them and other year-end statements (such as a 1099-INT 1099-R from your bank, brokerage or retirement plan provider) to ensure there are no errors. If you do find a mistake, contact the employer, payer or issuing agency right away and request a corrected form.

If an employer or financial institution doesn’t respond to your request for a corrected form by the end of February, call the IRS at 800-829-1040 and ask them to contact the employer or payer for you. If that doesn’t work, use Form 4852 to send estimated W-2 or 1099-R amounts to the IRS. Again, all this takes time and ultimately delays your tax refund.

4. Making errors on your 1040

If the IRS discovers a potential mistake when it’s processing your return, it takes additional time to review the error and make adjustments if necessary. This delay in processing can push back your refund.

The more complicated the error, the longer the potential delay. However, even simple mistakes can slow your refund. That’s why it’s important to carefully review your return before submitting it. That goes for returns prepared by a tax professional, too.

What types of blunders can delay the processing of your return and stall your refund? The IRS provides a list of common errors that can slow things down, including:

• Name, address or other important information isn’t legible.
• Social Security numbers are missing or incorrect.
• Filing status is incorrect or more than one box is checked.
• Standard deduction amount doesn’t fit your filing status.
• Information about dependents is absent or wrong.
• Math is incorrect.
• Bank routing and account numbers are missing or incorrect.
• Tax deductions or credits are claimed on the wrong line.
• Necessary forms or schedules are missing.
• Tax table isn’t used properly (for example, a wrong column is used).
• Signature or filing date are missing.

5. Mailing your return to the wrong IRS processing center

Even if your tax return is perfect, you won’t get your refund as quickly as possible if you mail your paper return to the wrong address. There are three different IRS processing centers that handle returns that show a refund. If you send a paper return to the wrong one, it's going to cause processing delays. Not putting enough postage on the envelope can slow things down, too.

Need help with your tax return? Try AARP's tax calculator, or visit AARP Foundation Tax-Aide to learn about free tax prep services by 30,000 volunteers nationwide.​