You may happen to find that your tax refunds are delayed and are told to reference Tax Topic 152. It will inform you that your tax refunds are delayed for an extended time period. You can see Tax Topic 152 on the ‘Where’s My Refund’ status on the IRS website.
Even though the Tax Topic 152 tells you what you can do to check the status of your refund, you may be confused about what you should do next, especially if your tax refund is delayed for an extended time. Then, you may wonder whether Tax Topic 152 information is good or bad. To know the information about it, you can see our post below.
Tax Topic 152: Is It Good or Bad?
Basically, Topic 152 is a generic reference code which you will see when accessing the IRS refund status tool. It commonly means that your tax refund has been delayed, but it doesn’t require any additional information.
To deeply find out the information about it, you should keep reading to learn more about why you received a Topic 152 notice and find the way to get your refund faster. Furthermore, Tax Topic 152 addresses the question of delayed income tax returns. Aside from publishing a tax topic on the subject of delayed returns, the ‘Where’s My Refund’ tool lets you check the status of your refund, as little as 24 hours after filing your return.
According to the IRS, 9 out of 10 tax refunds will be processed in your normal time frame of fewer than 21 days. Well, your return probably requires further review and may take longer than the typical 21 days if you come across a reference to Tax Topic 152.
It’s important to note, the Tax Topic 152 does not mean you made a mistake or did anything wrong when filling. Well, it simply means that your return is being processed and has yet to be approved or rejected.
So far, Tax Topic 152 information is good, since it allows you to get a refund, even though your refund may be delayed. In other words, you will get money, but you should wait longer than expected.
What Are Possible Reasons for Tax Topic 152?
The IRS may refer you to Tax Topic 152 to understand what is happening if your tax return is delayed. Depending on your situation and annual return, there are some reasons why you receive this referral. Here are they:
- Your refund includes EITC and/ or Additional Child Tax Credit
There may be a processing delay if you requested an EITC due to your family income being low-to-moderate or an Additional Child Tax Credit. The IRS hopes to send out those returns by March 1, but it has personalized refund dates.
- You filed an amended return
It may take up to 16 – 29 weeks to receive your tax refund if you filed an amended return, though the IRS commonly issues refunds within 21 days.
- You filed an injured spouse claim
It happens when people who are not responsible for debts their partner owes to the IRS, but file joint tax returns with their partner, can request their portion of a tax return separately from their partner’s. Of course, it will take extra time to process, but it prevents the IRS from imposing additional burdens on a spouse who does not own money.
- You filed a return using an Individual Taxpayer Identification Number (ITIN)
Most people will use Social Security Number (SSN) to file a tax return. If you use ITIN to file a tax return, it will create additional processing time with the IRS.
- You filed a US Nonresident Alien Income Tax Return
If you are a US non-resident and accidentally submit a tax return, you may have to wait up to 6 months to receive your tax return.
- Your tax return contained an error
Due to an error on your tax return, your tax refund might be delayed.
When Happens After Tax Topic 152 Processing?
Two things may happen after the IRS finishes processing your return. It’s good news if the IRS approves your return and sends your refund. Another potential outcome is the IRS putting your tax return under review.
If it occurs, Tax Topic 152 will appear on your account. In this situation, you may receive a letter from the IRS describing the changes to your return. Of course, those may include collective or adjustments activities.
How to Avoid Your Future Tax Return Delays?
What you should do to avoid delays with your IRS tax return is to file your paperwork properly the first time. In January and February, you should keep a file for your W2s, 1099s and other tax forms when they come in.
Make sure to not guess at any numbers. You may need to review your paperwork carefully and think about hiring a tax professional to review and file your return instead. If you e-file your tax returns and choose for direct deposit, you will receive your refunds the quickest. Of course, it can be a great option to ensure you receive your refund as soon as possible.
How to Ensure There Are Not Any Delays?
Before sitting down to file out your tax return, you should ensure you have all of the necessary information at hand, including:
- Make sure to hold your Identity Protection PIN if you were issued one by the IRS
- Income-related forms that you received, such as W-2s or any 1099s
- Any necessary forms to report your health insurance coverage, such as a Form 1095
- your taxpayer identification number and your previous year’s tax return and
- Personal identification information such as Social Security numbers, full names, and your spouse, birthdates for yourself, and any dependents
Keep in mind, you shouldn’t guess or estimate when filling in any of those amounts. If you keep financial records carefully, it will help you report accurately and avoid errors or delays. It’s important for you to double-check all of the information on your return to make sure it is correct and complete.