Every year, millions of taxpayers file their returns and get tax refunds paid out to them. These refunds are a significant source of cash for taxpayers. People use them to pay down debt, save, invest, and even go shopping.
But refunds can get delayed if you make errors, are under audit from a previous year, or the IRS is going through technical problems, to name a few reasons. If you need the refund to cover expenses, these issues can put you in a financial bind. Here’s why tax refunds get delayed and what to do in the meantime if you need funds sooner.
Why do tax refunds get delayed?
Tax returns can be complex. It’s easy to accidentally make errors while you’re filling out your return. If the IRS finds an error, they may flag it and let you know that you need to fix the error. Additionally, the IRS may flag your return if you claim certain deductions and credits.
That said, the IRS processes millions of tax returns each year. Sometimes, technical problems can cause delays. Other reasons your refund is delayed could include:
- Failure to pay certain debts or state taxes
- The IRS suspects identity theft and asks you for ID verification
- Affordable Care Act insurance issues
- You’re under audit from a previous year
- You need to file past-year returns
If your refund gets delayed due to something on your end, make sure to correct the issue as soon as possible.
Loan options to consider if your tax refund gets delayed
If you need your tax refund right away, but it gets delayed, a personal loan could help you get the funds you need while you wait. Then, you can simply pay off the remaining loan balance when you finally get your refund. Here are two personal loan options to consider:
If you only expect your delay to be a couple weeks maximum, a cash advance could be a good way to get some extra financial help until then. These loans give borrowers a few hundred dollars to tide them over until their next paycheck. Once you receive the funds, you can cover expenses and repay what you owe in two to four weeks.
Installment loans are short-term loans that give you a lump sum of money all at once. Then, you’ll repay this loan over time in fixed monthly payments, or installments. Installment loans may have longer term lengths that can range from a few months to a few years, so this option may work well if your delay is longer than a month.
The bottom line
Since tax returns can get complicated and the IRS processes so many of them each year, delays are bound to happen. If there are any issues on your end, make sure you fix them as soon as possible so the IRS can release your refund to you. Consider speaking to a tax professional if you aren’t sure what to do.
In the meantime, you can look into getting a personal loan if you need extra funds, like a cash advance or installment loan. Then, you can pay the loan off when your refund arrives. That said, make sure to do your research and shop around so you can get a personal loan with terms and rates that work for your needs and budget.
Notice: Information provided in this article is for information purposes only. Consult your financial advisor about your financial circumstances.