Stressed About Your IRS Refund? Here's How To Cope With Tax Return Anxiety
Filing taxes can be an overwhelming experience, especially if you’re experiencing financial strain. Gathering documents, navigating tax laws, and meeting deadlines can make tax season a major source of stress, and wondering about or waiting for a refund check can add another layer of anxiety. However, with the right approach, you may be able to check your taxes off your to-do list and keep tax season anxiety at bay. Here, you’ll learn practical tips to help you stay organized, ease financial worries, and manage tax-related stress more effectively.
Why tax return anxiety happens
Filing taxes can be a stressful experience, and the uncertainty associated with it—such as waiting for your refund to arrive and worrying about potential errors or audits—can be a source of anxiety. Tax return anxiety may be especially pronounced if you rely on the refund or are otherwise experiencing financial stress. To understand why else tax season can take a toll, it may be helpful to understand the psychological processes involved.
How long does it take to get your IRS refund via direct deposit or mail?
The time it takes to receive your IRS refund depends on how you filed. If you e-file, your refund will often be deposited within 21 days, while a paper return can take six weeks or more. However, it’s not uncommon to experience delays due to:
- Errors on your tax return: If your tax return has incorrect or incomplete information, you may need to resubmit it.
- Identity verification issues: If the IRS suspects identity theft or discrepancies, you may need to verify your identity.
- IRS audits: In some cases, the IRS may hold your refund while your tax return undergoes additional review. Audits can take weeks or months, depending on their complexity.
- Certain tax credits: Refunds may be delayed if you claim the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC), as these undergo extra scrutiny.
How can I check my IRS refund status?
You can track the status of your current year refund using the "Where’s My Refund?" tool on the IRS website. This tool updates daily and provides information on whether your return has been received, approved, or sent. To check your status, you'll need your Social Security number, filing status, and exact refund amount.
Practical ways to reduce tax refund stress
Waiting for a tax refund can feel stressful. However, it may be possible to ease anxiety by taking proactive steps like the following to manage your finances and support your mental well-being.
1. Start your taxes early
While it can be tempting to procrastinate, filing your taxes in a timely manner may help reduce stress and ensure you get your refund sooner. Waiting until the last minute to file could leave you rushing to find missing documents, increase the likelihood of errors, and delay your refund. By checking your taxes off your to-do list earlier, you may be able to avoid these issues and gain peace of mind.
2. Double-check your tax return before filing
To help prevent delays, be sure to carefully review your taxes for missing or incorrect information before submitting. If you have a complex financial situation, it may be worth hiring a certified tax professional to prepare your return. Tax software may also help streamline the filing process and flag potential issues that could delay your refund.
3. Prepare financially in case of delays
While most refunds arrive on time, delays can happen, so it may be a good idea to budget accordingly. Consider setting aside some savings, if possible, or limiting excess spending while you wait. It may also be advisable to avoid refund anticipation loans, which tend to come with high fees and interest rates. Having a backup plan for covering expenses might help you feel more financially stable in the meantime.
4. Distract yourself with positive activities
Ruminating about your tax refund can increase distress. Instead, you might try to focus on positive activities that can help ease financial stress, such as organizing finances, planning your budget, or finding small ways to boost your income. Exercise, meditation, and spending time with family and friends may also help ease stress and take your mind off the wait. If you’re struggling to control your anxiety, you may benefit from speaking with a therapist.
5. Reframe your mindset about your tax refund
In some cases, it might be helpful to shift your perspective by reminding yourself that your refund isn’t “extra money,” but rather a return of what you overpaid throughout the year. By viewing your refund as part of a larger financial strategy, you may be able to make mindful decisions about saving, investing, or paying down debt.
How to mentally reframe tax refund anxiety
Mental reframing, also called cognitive reframing, is a psychological technique intended to help shift your perspective, allowing you to see stressful situations in a more positive or constructive light. When it comes to tax refund anxiety, reframing can help you focus on what you can do to help mitigate worry about your refund status or overall financial situation. Here’s how it works:
- Recognize unhelpful thoughts. Identify any negative thoughts or feelings you have about your taxes. Are you worried that you’ll owe? Frustrated by the filing process? Concerned that the refund amount won’t be enough? It may help to write down your thoughts and feelings.
- Challenge your perspective. Next, look for ways to challenge these unhelpful thoughts. For instance, you might remind yourself that worrying won’t help, or consider how past tax seasons have worked out despite initial stress. You could also focus on what you can control, such as budgeting or investing.
- Focus on financial empowerment. Instead of fixating on your tax refund, you might try to see it as part of your larger financial plan. If your tax anxiety is part of a broader pattern of financial stress, some people might be able to take steps to improve their financial stability, such as exploring additional income streams or setting up automatic savings.
- Remind yourself of your strength. Many factors can affect a person’s financial situation, and they’re not always within one’s control. Regardless of the causes, it can sometimes help to remind yourself of your strength, resilience, and creativity in solving problems and addressing challenges. You might look back on times when you successfully navigated a difficult situation and aim to treat yourself with gratitude and self-compassion in this moment.
- Manage stress. Tax season can be overwhelming, so it can be helpful to engage in stress-reducing activities like exercise, hobbies, or mindfulness techniques. You might also take breaks when needed, stay organized, and engage in activities that help you feel grounded. Prioritizing self-care may make the process feel more manageable.
If you’re looking for support in implementing the cognitive reframing technique, it may help to speak with a therapist. A provider who specializes in cognitive behavioral therapy (CBT), for example, can guide you through the process of cognitive reframing to help you build this skill.
Taxes and mental health: when to seek professional help
If tax season causes significant stress or anxiety, it may be worth consulting a professional. A tax professional can often help maximize deductions and prevent errors. If you have a complex tax situation—such as self-employment, investments, back taxes, or an amended return—working with an expert can help provide peace of mind. If tax season anxiety is part of deep-rooted concerns about your financial situation, you might consider working with a financial planner to create a sustainable financial plan.
It may also be worth considering getting help for any mental or emotional challenges you may be facing. Anxiety—whether it’s caused by tax-related stress or other life challenges—can take a significant toll on your health and well-being, and research suggests that therapy can often be an effective way to address it. Even if stress feels overwhelming or interferes with your ability to function, a therapist may be able to provide valuable tools to help you manage anxious thoughts, build resilience, and develop coping strategies.
Mental health support for financial anxiety
If your financial situation is taking a toll on your mental health and well-being, affordable mental health care can be an important consideration. A mental health professional can help you create a plan and build the coping skills you may need while you aim to get your finances back on track. For example, they might help you set goals, manage stress, or address underlying concerns that may be impacting you financially.
With BetterHelp, you can attend virtual sessions with a licensed mental health professional via phone, video call, or live chat, plus benefit from a suite of tools and features designed to help you get the most out of therapy. In many cases, online sessions are also more affordable than traditional in-person therapy without insurance. Research suggests that online therapy may often be just as effective as in-person therapy.
Takeaway
How can I check my IRS refund status?
You can check your refund status using the IRS "Where’s My Refund?" tool online or the IRS2Go mobile app. You’ll need your Social Security number, filing status, and exact refund amount to track progress. Refunds typically move through three stages: Return Received, Refund Approved, and Refund Sent.
What happens if my direct deposit information is incorrect on my tax return?
If the direct deposit information on your tax return is incorrect, the bank will likely reject the deposit and the IRS will mail you a paper check instead. This can significantly delay your tax refund, so it can be advisable to double-check your account and routing numbers before submitting your return.
Can I file a hardship with the IRS to get my refund?
In certain cases of financial hardship, the IRS may be able to expedite your refund. For example, if you can’t buy necessary medications, don’t have enough money to pay your mortgage or rent, or are otherwise facing financial challenges, you may be able to get your refund sooner by contacting the IRS and speaking to them about your situation.
Where can I check my refund status?
The IRS has a “Where’s My Refund?” tool that can tell you the refund status of an individual or joint return. Your status will appear approximately 24 hours after submitting an e-filed return for the current year or four weeks after filing a paper federal tax return. To use this tool, you’ll need your individual taxpayer ID number or Social Security number, your filing status, and the exact refund amount on your return.
How long are IRS refund checks taking?
Refund checks for paper tax returns usually take six to eight weeks. Returns that are filed electronically take around three weeks.
Should I be worried if my refund is still being processed?
In some cases, the IRS may hold your refund for 45 to 180 days to review your return. This may happen if there are errors in the return or if it has been affected by fraud or identity theft. If you’re concerned about your refund and it has been over six weeks since submitting a paper return or 21 days since filing an electronic return, you can contact the IRS directly for more information.
What's the longest the IRS can hold your taxes?
The answer to how long the IRS can hold your taxes varies by situation. If there is a problem with your return and you promptly provide the correct information to the IRS, they should be able to correct the issue within 60 days. A missing or late return is usually handled within 90 days.
How do I speak to a live person at the IRS about my refund?
You can call 800-829-1040 to speak to a customer service representative who can explain more about how refunds work and the status of your refund. Hours are typically 7 AM to 7 PM local time.
Can I sue the IRS for taking too long to process my return?
You can file an action for recovery if the IRS has not taken action within six months from the date of filing. However, this is usually a complicated, expensive, and time-consuming process.
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