- Moneyhoot
- Posts
- Your Tax Refund Is Taking Longer This Year. Here's Why.
Your Tax Refund Is Taking Longer This Year. Here's Why.
Nico DeHaan
February 15, 2026
Money Matters:
You filed your taxes on February 1st. It's now April 15th.
Your refund—the $3,500 you were counting on for car repairs and summer camp deposits—still hasn't shown up.
You check "Where's My Refund?" for the 47th time. Same vague message: "Your return is being processed."
No date. No explanation. Just...processed.
Welcome to the 2026 tax season, where refunds are slower, the IRS is drowning, and "21 days" is more of a fantasy than a promise.
This week: why your refund is taking forever, and the three moves to avoid making it worse.
Survey says:
⏳ The IRS lost 17% of its workforce in 2025—staffing is back to 2021 levels while the workload has grown.
📋 Over 13 million tax returns were suspended for review during the 2025 filing season—that's one in every seven returns.
🚫 Paper refund checks are being phased out—if you don't provide direct deposit info, your refund gets frozen until you do.
💸 The average refund was $3,200 in 2025, with some estimates suggesting $4,200 in 2026 due to tax law changes.
📞 Experts warn: prepare for unanswered phone calls and longer delays due to staffing cuts and shutdown fallout.
Translation: Your refund is coming. Eventually. But if you're counting on it arriving on time, you need a backup plan.
Inside Today’s Issue:
😎 Our Favorite Resources
👍 Why Your Refund Is Taking Forever (And It's Not Your Fault)
👌 The 3-Move Playbook to Speed Things Up (Or At Least Not Make It Worse)
🤷♀️ What's up for next week
First time reading? Sign up here
Worth Your Time
Our favorite resources
🔍 IRS Refund Tracking Tools
Where's My Refund? (IRS.gov) – Official status checker, updates within 24 hours for e-filed returns.
IRS2Go App – Mobile version with push notifications so you can check obsessively on the go.
📱 Filing Resources
IRS Free File – Free tax software for households earning under $84,000.
IRS Online Account – Set up direct deposit, view past returns, respond to notices. Set this up NOW before you need it.
📜Quote
"The IRS: Proving that 'simple' is a relative term since 1862." — Every taxpayer, every April
Today’s Main Event
Why Your Refund Is Taking Forever
The IRS is a dumpster fire right now. Not because the people working there are bad at their jobs—but because there aren't enough of them.
Here's what's really going on.
The IRS Lost 17% of Its Staff (And The Work Didn't Shrink)
In 2025, the IRS lost roughly 17% of its employees through cuts and attrition. Staffing is back to October 2021 levels.
The workload? Bigger than ever.
The IRS hired 2,200 seasonal workers to help. By late December, only 50 had actually been brought on—about 2% of what they needed. Training takes 60-80 days, so most won't be operational until mid-March.
What this means for you: Even if you filed early, your return is in a longer line with fewer people processing it.
Savings lost: Weeks of waiting because the system is jammed.
One in Seven Returns Got Flagged for Review
During the 2025 filing season, the IRS suspended over 13 million returns for additional review—roughly one out of every seven.
What triggers a review:
Claiming Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC)
Large deductions or charitable donations
Self-employment income
Mismatched W-2 or 1099 information
Filing status changes
You won't know you're under review until you check "Where's My Refund?" and see "Your return is being processed" with no timeline.
Savings lost: Weeks to months if your return gets flagged.
Paper Checks Are Being Phased Out (And It's Causing Chaos)
Starting fall 2025, the IRS began phasing out paper refund checks. Most taxpayers now must provide direct deposit information.
What happens if you don't:
The IRS freezes your refund until you log into your IRS Online Account and add banking details—or call and request a paper check waiver.
Most people don't know their refund is frozen until they check status and see a notice.
Average wait time on IRS phone lines during tax season? 30-60 minutes. Sometimes longer.
Savings lost: Days to weeks waiting to fix a problem you didn't know existed.
EITC and ACTC Filers Wait Until March (By Law)
If you claimed EITC or ACTC, federal law requires the IRS to hold your entire refund until at least mid-February.
The timeline:
File in late January
IRS holds until after February 15 (by law)
First refunds expected Feb 27 - March 6
Even if you filed on Day 1, you're waiting until March. And that's assuming nothing else gets flagged.
Savings lost: Extra 4-6 weeks minimum.
The 3-Move Playbook
You can't control IRS processing speed. But you can avoid making it worse.
Move 1: E-File With Direct Deposit (Non-Negotiable)
Paper returns take 4-8 weeks. E-filed returns take 21 days (sometimes less).
Why e-filing is faster:
Goes straight into the system (no manual entry)
Errors caught before submission
You get confirmation the IRS received it
Why direct deposit matters:
Paper checks are being phased out—no direct deposit = frozen refund
Lands 5-10 days faster than mailed checks
No risk of lost or stolen checks
How: Use tax software (TurboTax, H&R Block, FreeTaxUSA, or IRS Free File). Double-check your routing and account numbers. Submit before April 15.
Savings: Up to 6 weeks vs paper filing.
Move 2: Set Up Your IRS Online Account NOW
Most people wait until something goes wrong. By then, it's too late.
Why you need it:
Fix frozen refunds for missing direct deposit info
View past returns and check status
Respond to IRS notices instantly
How to set it up:
Takes 10 minutes now. Could save you weeks later.
Savings: Days to weeks if something goes wrong.
Move 3: Track Smart, Don't Panic
Use "Where's My Refund?" on IRS.gov or the IRS2Go app.
When to check:
Wait 24 hours after e-filing
Check once a day max (refreshing 47 times won't help)
When to worry:
More than 21 days (e-filed) or 8 weeks (paper) with no update
You get a freeze or review notice
Tool tells you to call the IRS
When NOT to worry:
It's only been 10-14 days
You claimed EITC/ACTC (you're waiting until March automatically)
Message says "being processed" and it's under 21 days
Bottom line: The system is slow this year. That doesn't mean your refund is lost.
What If It's Taking Forever?
If it's been more than 21 days (e-filed) or 8 weeks (paper):
Check "Where's My Refund?" one more time
Call the IRS: 800-829-1040 (prepare for 30-60 minute wait)
Have ready: Social Security number, filing status, exact refund amount
If you can't get through, try Taxpayer Advocate Service: 877-777-4778
Don't panic yet. Delays don't always mean something's wrong—sometimes you're just in a slow queue.
The Bottom Line
Your refund is probably taking longer this year. Not because you messed up—because the IRS is understaffed and overwhelmed.
E-file. Use direct deposit. Set up your IRS Online Account before you need it. Then wait.
It's frustrating. It's unfair. And it's reality.
But at least you won't make it worse.
Until Next Time
What’s Up Next Week
You now know why your refund feels stuck in quicksand, and you've got three moves to keep from sinking deeper.
Next time the IRS says "being processed" with zero other details, remember: somewhere in a government building, an overworked employee is doing their best with half the staff they need.
Until next time—file early, double-check your bank info, and may your refund arrive before you've forgotten what you needed it for.
—Nico & the MoneyHoot Team 🦉
👉 Please take 1 click and rate this issue — it helps us make MoneyHoot better.
👉 Follow us on Twitter @MoneyHoot for daily money tips and occasional IRS wait-time therapy.
👉 Forward this to a friend who filed in February and still checks "Where's My Refund?" like it's a lottery ticket.
Rate Today's Edition |
DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.