For taxpayers eagerly awaiting their money, the question of "How long are tax refunds taking right now?" is critical. While processing times are generally consistent for most returns, current timelines depend heavily on whether you are waiting for a federal or state refund and, most importantly, how you filed.
Here is a breakdown of the typical and current processing windows for the federal and state tax refunds.
Federal Tax Refund: The 21-Day Standard
The Internal Revenue Service (IRS) maintains a firm commitment to processing the majority of refunds within a specific window:
- E-Filed Returns (with Direct Deposit): The standard timeframe remains 21 calendar days or less from the date the IRS accepts your return. Most taxpayers who file electronically and choose direct deposit will receive their money within this three-week period.
- Paper Returns: This process is significantly slower due to manual data entry and backlogs. The IRS advises current paper filers to expect a wait time of six weeks or longer. The IRS often processes paper returns where a refund is expected before other types of correspondence, but the delay remains substantial.
Common Federal Delays
A refund that takes longer than 21 days is almost always due to one of these factors:
- Claiming Credits: Returns claiming the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) are subject to anti-fraud laws that require the IRS to hold the refunds until at least mid-February.
- Errors or Review: If the IRS flags the return for errors, requires identity verification, or selects it for a random security review, processing can extend by 45 to 180 days depending on the complexity of the issue.
State Tax Refunds: A State-by-State Variation
State refund times are not tied to the federal timeline and can vary wildly.
- Average State Timelines (E-File): Most state agencies process electronically filed returns and issue refunds within 2 to 4 weeks. Some states with highly efficient systems are even faster, sometimes processing returns in a matter of days.
- Average State Timelines (Paper): Similar to the IRS, state agencies rely on manual processing for paper returns, typically resulting in a wait time of 30 days or longer.
Maryland-Specific Times (Example)
For Maryland, recent data has shown processing improvements:
- E-Filed Returns: Can be processed in as little as several days or up to 2-4 weeks.
- Paper Returns: Estimated to take 30 days or more for processing, as they are subject to manual review and data entry backlogs.
If your refund is taking longer than expected and you’re not sure whether it’s normal or a problem — Watter CPA can compare your situation to current processing timelines and spot potential red flags. Get in touch to find out whether it’s time to wait, call, or take further action.
