Breaking: The IRS refund clock starts Jan 26. I can confirm the agency will begin accepting 2025 tax year returns on that date. That means “Where’s My Refund?” becomes the key tracker for early filers waiting on cash. Timelines, cash flow, and market impact all tighten from that moment.
The clock starts Jan 26
E-file providers can take your return now. They submit to the IRS on or after Jan 26. Your status shows in “Where’s My Refund?” within 24 hours of IRS acceptance. Paper filers should expect about four weeks before a status appears.
Most refunds land within 21 days if you e-file and choose direct deposit. That is the baseline. Some refunds, including those with the Earned Income Tax Credit or the Additional Child Tax Credit, are held by law until mid to late February. That push comes from the PATH Act, and it is normal.
Expect up to 21 days for standard e-file direct deposit. EITC and ACTC refunds will not be released until mid to late February.
Delays still happen. Identity checks, math errors, or bank holds can add days. Do not call the IRS unless it has been more than 21 days since e-file acceptance or the tool tells you to call.
How to use “Where’s My Refund?”
You have two official paths, irs.gov/refunds or the IRS2Go app. You will need three exact items, your SSN or ITIN, your filing status, and your expected refund amount down to the dollar.
The tool updates once a day, usually overnight. Do not refresh all afternoon. It will not change more often than that.
- E-file and select direct deposit to a single U.S. account.
- Wait for IRS acceptance, not just the tax software receipt.
- Check “Where’s My Refund?” after 24 hours for e-file, four weeks for paper.
- Watch the three stages, Return Received, Refund Approved, Refund Sent.
Enter the exact refund amount from your filed return. A mismatch will block your lookup.
If you use a refund transfer to pay prep fees, funds may route through a third party bank. That can add a short hold even after “Refund Sent.” Ask your provider how that works.
What this means for your money
Refunds act like a short, sharp cash wave. In recent years, many households received several thousand dollars. That money hits checking accounts from late February into March. The timing matters for spending, debt paydown, and savings.
Retail sees the first lift. Discount chains, mass merchants, and apparel often catch an early bounce. Home projects pick up when refunds arrive. Used car down payments tick higher. Card balances fall as families pay off holiday debt. Banks and neobanks see deposit inflows, then some of that cash moves to high yield savings and money market funds.
For investors, this is a calendar trade. EITC and ACTC holds push some spending into the back half of February. That can shift same store sales by a week or two. It can also widen the gap between winners and laggards in late February.
- Watch consumer discretionary and discount retail for a late February to March lift.
- Track tax prep names and processors as volume ramps into opening week.
- Expect a boost to deposits at regional banks and digital banks.
- Look for higher paydowns in credit cards, which can trim reported interest income.
- Money funds may see short term inflows as households park refunds.
On the macro side, the refund wave can nudge near term consumption. It will not change the growth path on its own. It can, however, smooth some early quarter noise in sales data. That matters for trading around January and February prints.
Delays and risks to monitor
Identity verification letters can pause a refund. Incorrect direct deposit details can bounce it back to the IRS and trigger a paper check. If your return has a balance due on another tax or a federal debt, your refund can be offset. Banks also place internal holds for fraud checks in some cases.
For markets, the risk is timing. A slower release of EITC and ACTC funds can push spending from late February into March. That shift can affect weekly retail readings, card tracker data, and guidance from chains that report in early March. Traders who live on the tape should mark that window.
Be wary of refund anticipation loans with high fees. A fast advance can cost more than waiting a few days for direct deposit.
The cleanest path is simple. File early, e-file, choose direct deposit, and check “Where’s My Refund?” once a day. Do not change banks midstream. Keep your routing and account numbers correct.
The bottom line
The refund season starts Jan 26, and the tracker is your compass. Most e-filers with direct deposit will see money within 21 days. EITC and ACTC filers should plan for mid to late February. For households, this is cash in motion. For markets, it is a near term tailwind for consumer names and deposit gatherers. Set expectations now, position for the flow, and let the tool guide the rest.
