Tax season is officially in full swing, with the earliest filers starting to see their refunds reflected in bank accounts. The IRS and the Colorado Department of Revenue began processing tax returns in late January, signaling the arrival of refunds for many taxpayers.
While the pace of federal filings has slowed compared to last year, with IRS data indicating a 12.3% decrease in processed individual income returns through February 6, the outlook for refunds shows a silver lining. Although the total number of refunds issued dropped by 8.1% to 7.4 million, the average refund amount has seen a significant increase, rising by 10.9% to reach $2,290 this year.
Taxpayers seeking to track their refunds have access to multiple online resources. The IRS offers both a website and an app for users to monitor their refund status. For these services, individuals need their Social Security or taxpayer ID number, filing status, and exact refund amount. Data is updated overnight, providing timely information.
For those wondering when they will receive their federal tax refunds, the processing timeline varies. Returns that are filed electronically are generally processed within 21 days or fewer, while paper returns can take six to eight weeks. Errors or missing documents may further delay the process. Moreover, opting for direct deposit remains advantageous, as it is considerably faster than receiving a paper check.
Colorado taxpayers can similarly stay updated on their refund status via the Colorado Department of Revenue’s website. Users can enter their Social Security number or taxpayer ID along with the claimed refund amount, or utilize a Letter ID from prior correspondence. For those preferring to speak with a representative, calling 303-238-7378 is also an option, although it may involve lengthy wait times.
The timeline for Colorado state tax refunds typically sees direct deposit refunds landing more quickly than mailed checks. Although specific timelines are not released by the state, refund checks generally arrive within seven to 10 business days after mailing; however, some checks may take up to 30 days in certain situations. If a check has not been received within this period, taxpayers can request a refund reissue through the same hotline.
It is important to note that the current federal government shutdown will not impact tax refunds, as the IRS has already been funded for the remainder of the fiscal year. The potential for a backlog during previous shutdowns, like the one in October 2025, had raised concerns, yet the agency appears to be functioning smoothly this season.
With tax season yielding positive outcomes for many, taxpayers are encouraged to stay informed and utilize the available online tools to track their refunds, ensuring a smoother filing experience during this busy time.