AI's NEXT Magnificent Seven

The original Magnificent Seven produced 16,894% average returns over 20 years. But the man who called Nvidia at $1.10 says "AI's next Magnificent Seven could do it even faster." See his breakdown of the seven stocks you should own here.

Tax season has begun. Here's when you'll get your refund

CORA LEWIS
January 29, 2025

NEW YORK (AP) -- Tax season is underway, and the IRS expects 140 million people will file returns by April 15. The agency has also debuted a new online tool to help taxpayers check the status of any refund they may be entitled to.

President Donald Trump this week offered all federal employees a buyout package in an effort to reduce the size of the government workforce, which could impact IRS staffing at an important period for the agency, though it's not yet clear how. The IRS did not immediately respond to a request for comment.

Here's what to know:

When will I receive my refund?

If you file your tax return electronically, the IRS says it should take 21 days or less to receive your refund. If you choose to receive your refund with direct deposit, it should take even less time. If you file a paper return, the refund could take four weeks or more, and if your return requires amendments or corrections, it could take longer.

The IRS cautions taxpayers not to rely on receiving a refund by a certain date, especially when making major purchases or paying bills.

How can I check the status of my refund?

Taxpayers can use the online tool Where's My Refund? to check the status of their income tax refund within 24 hours of e-filing and generally within four weeks of filing a paper return.

Information related to this tool is updated once daily, overnight. To access the status of your refund, you'll need:

-- Your Social Security or individual taxpayer ID number (ITIN)

-- Your filing status

-- The refund amount calculated on your return

How do refunds work?

If you paid more through the year than you owe in tax, due to withholding or other reasons, you should get money back. Even if you didn't pay excess tax, you may still get a refund if you qualify for a refundable credit, like the Earned Income Tax Credit (EITC) or Child Tax Credit. To get your refund, you must file a return, and you have three years to claim a tax refund.

Do I qualify for the Earned Income Tax Credit (EITC)?

To qualify for the EITC, you must have under $11,600 in investment income and earn less than a specific income level from working. If you're single with no children, your income level must be $18,591 or below. And if you're married filing jointly with three or more children, you must make $66,819 or below. To determine if your household qualifies based on your marital status and your number of dependents you can use the online EITC Assistant tool.

What about the Child Tax Credit?

If you have a child, you are most likely eligible for the Child Tax Credit. The credit is up to $2,000 per qualifying child. To qualify, a child must:

-- Have a Social Security number

-- Be under age 17 at the end of 2024

-- Be claimed as a dependent on your tax return

You qualify for the full amount of the Child Tax Credit for each qualifying child if you meet all eligibility factors and your annual income is not more than $200,000 ($400,000 if filing a joint return).

What's different this year?

The IRS has expanded a program that allows people to file their taxes directly with the agency for free. The federal Direct File program, which permits taxpayers to calculate and submit their returns without using commercial tax preparation software, is now available to taxpayers in 25 states, up from 12 states that were part of last year's pilot program.

The program allows people in some states with very simple W-2s to calculate and submit their returns directly to the IRS. Those using the pilot program in 2024 claimed more than $90 million in refunds, the IRS said in October.

___

The Associated Press receives support from Charles Schwab Foundation for educational and explanatory reporting to improve financial literacy. The independent foundation is separate from Charles Schwab and Co. Inc. The AP is solely responsible for its journalism.

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