Tax season is underway: IRS offers new tools, amid potential staffing changes

INDIANA – With tax season in full swing, the IRS anticipates 140 million filings by the April 15 deadline. The agency has launched a new online tool to track refunds, highlighting existing resources like the Earned Income Tax Credit (EITC) and Child Tax Credit. The administration has offered federal employees buyout packages, raising questions about potential impacts on IRS staffing during this critical period. The IRS has not yet commented on the potential effects.

Tracking Your Refund

Electronic filers can typically expect refunds within 21 days, with direct deposit often faster. Paper filers may wait four weeks or more. The IRS advises against relying on specific refund dates for major purchases or bill payments.

The “Where’s My Refund?” tool on the IRS website allows taxpayers to check refund status within 24 hours of e-filing and four weeks of paper filing. Users need their Social Security or ITIN, filing status, and refund amount to access this tool, which updates overnight. To check your Indiana state return, click here.

Refunds are issued when taxes paid through withholding or other means exceed the amount owed. Refundable credits like the EITC and Child Tax Credit can also result in refunds, even without excess tax payments. Taxpayers have three years to claim a refund by filing a return.

EITC and Child Tax Credit

The EITC is available for those with investment income below $11,600 and earned below specific thresholds. These thresholds vary based on filing status and dependents, ranging from $18,591 for single filers with no children to $66,819 for married couples filing jointly with three or more children. The IRS provides an online EITC Assistant tool to determine eligibility.

The Child Tax Credit offers up to $2,000 per qualifying child (under 17, with a Social Security number, and claimed as a dependent). The full credit is available for those meeting eligibility requirements with incomes below $200,000 (single) or $400,000 (joint filers).

Direct File Program Expansion

The IRS’s Direct File program, enabling free direct filing without commercial software, has expanded from 12 to 25 states. This program is designed for taxpayers with simple W-2s and saw over $90 million in refunds issued during its 2024 pilot program.