Michelle Singletary: Three moves to get your tax refund faster in 2023

The last few tax seasons were dominated by backlogs. Here’s hoping this year will be different.

Or at least, in the words of National Taxpayer Advocate Erin M. Collins, it’s “the year we stopped talking about a backlog.”

In her annual report to Congress earlier this month, Collins commended the IRS for making “considerable progress in reducing the volume of unprocessed returns and correspondence.” The agency has slashed its massive backlog of unprocessed tax returns by nearly two-thirds, to about 4 million, in the past year.

But Collins expects the IRS will continue to struggle with customer service.

“We have begun to see light at the end of the tunnel,” she wrote. “I am just not sure how much further we need to travel before we see sunlight.”

Here are the questions I’m asked most often when a new tax season starts. Here’s what I know:

When are tax returns due?

The government started accepting tax returns Monday. If you owe the IRS, you must file by April 18. Failing to pay what you owe on time can result in penalties.

The IRS said some disaster victims and Americans living overseas might have more time. Storm victims in Alabama, California and Georgia have until May 15 to file their federal individual and business tax returns and pay what’s owed.

If you request an extension, you have until Oct. 16 to submit your returns. But filing an extension doesn’t give you more time to pay.

If you are due a refund, you aren’t penalized if you don’t file by April 18. However, by law, taxpayers have only a three-year window from the original return due date to claim their refunds. Last year, the IRS estimated it owed $1.5 billion in refunds to 1.5 million taxpayers who hadn’t filed their 2018 returns.

How soon can I expect my refund after filing?

There are three key things you can do to help speed up your refund – check for errors on your return, file electronically and choose direct deposit.

“We still say generally within 21 days, if there are no issues with the return, you’ll get your refund,” according to IRS spokesman Eric Smith.

Do your best to triple-check everything on your tax form so it’s not pulled for a manual review.

How do I check on the status of my refund?

Track the status of your refund with the “Where’s My Refund?” tool at irs.gov.

But you don’t have to check multiple times a day. Updates are made daily, usually overnight.

You can also call the IRS refund hotline at (800) 829-1954.

What should I do if I don’t have the money to pay my tax bill?

Don’t hide from the problem. File your return on time and pay as much as you can.

Visit irs.gov/Payments, and you’ll find a section with options if you can’t pay your tax bill in full.

If you need a payment agreement, you can usually get one if you owe $50,000 or less. You can use Form 9465 (Installment Agreement Request), or it can be set up online.

You may be eligible for a temporary collection delay if you’re dealing with a financial hardship. If approved, you would be put in a status called “Currently Not Collectible.” For more information at irs.gov, search for “Temporarily Delay the Collection Process.”

But being currently not collectible does not mean the debt is forgiven or that penalties and interest aren’t charged. It’s an indication that the IRS recognizes that you do not have the ability to pay your basic living expenses and pay taxes owed at this time.

What is the Child Tax Credit for 2022?

The child tax credit for 2022 reverted to the pre-pandemic maximum of $2,000 per child younger than 17.

You qualify for the full credit for each qualifying child if you meet all eligibility factors and your annual income is $200,000 or less ($400,000 if filing a joint return). Guardians and parents with incomes above these thresholds may be eligible to claim a partial credit.

The IRS has an interactive tax assistant tool online (irs.gov/help/ita) that helps check whether you qualify for the child tax credit. On the page, scroll down to the section on credits.

Why hasn’t the IRS processed my refund or return?

The IRS is still processing older returns that need to be done manually due to errors, the agency said.

“Most (returns) have been processed, though there are some where we are still corresponding with those affected,” Smith said.

If you’re looking for the status of an amended return, try using the “Where’s My Amended Return?” tool on the IRS website.

Will my phone call go unanswered?

If you need help, yes, call the IRS. But it’s very likely the endeavor will result in a long wait or probably a hang-up after an automated voice thanks you for your patience.

The IRS said more than 5,000 “telephone assisters” have been hired to help taxpayers.

When is the best time to call the IRS?

Calling early in the morning or later in the week might increase your chance of reaching a live person at the IRS.

Mondays or after a holiday weekend (Presidents’ Day is Monday, Feb. 20) are generally bad, even in good times, according to the agency.

Expect longer delays around the April filing deadline.

Should I still file even if the IRS hasn’t processed the previous year’s return?

“Each return is processed separately,” Smith said.

So, yes, file your 2022 return even if the IRS is still working on an older one.

When you file electronically, one of the verification questions asks for your adjusted gross income, or AGI, from the previous year. If your 2021 return has not been processed, enter $0 (zero dollars) for your prior-year AGI.

Should I avoid filing a paper return?

Some people must file a paper return. But avoid doing so if you can.

“My recommendation would be if at all possible, file electronically if you’re waiting for a refund,” said Collins, the taxpayer advocate.

What happens if I sold more than $600 of goods and services on a payment site?

The 1099-K reporting rule has been delayed until 2024.

Starting with this tax season, third-party payment processors such as PayPal, Venmo and Cash App were supposed to report earnings for goods and services above $600 a year in an effort to capture income from gig workers and entrepreneurs with side hustles.

Under a previous rule, companies were required to submit an IRS Form 1099-K only for gross payments exceeding $20,000 and transactions totaling more than 200.

There’s been a lot of concern from people who use these platforms for personal payments, such as splitting the cost of a dinner with friends. To give users and companies more time to adjust to the new reporting rule, the IRS has delayed its implementation until next year.

This means the 1099-K reporting threshold of $20,000 in payments from more than 200 transactions will apply to 2022 returns.