Direct deposit issues, tax debt, or tax treatment issues could be to blame
NEW MEXICO (KRQE) – About 600,000 New Mexicans have already received the first of two rounds of state economic aid payments. Intended to help pay for high fuel costs and inflationary pressure, the payments, which began on May 18, paid an additional $250 for single filers or $500 for joint filers.
But what if your tax refund hasn’t reached your bank account or mailbox yet? Should we be worried that something will go wrong?
Not yet, according to the New Mexico Tax and Revenue Department. There could be several reasons for this delay, including possible issues with your direct deposit, slower speed of printing paper checks, or tax processing issues, among others. Here are the most likely reasons you’re experiencing a delay in your first economic relief payment, depending on the state.
Disallowed tax preparer advances or direct deposits
While people who received a refund on their 2021 state taxes by direct deposit have most likely already received their first payment of $250 or $500, there is a small group of possible exceptions for this group. New Mexico Department of Tax and Revenue (TRD) spokesman Charlie Moore said refunds may be delayed for filers who chose to get an advance on their 2021 tax return through a tax preparation service.
An advance is when a tax preparer (eg, those big flashy websites that file your taxes) offers to pay you your expected return immediately. In return, you didn’t have to wait a week or two to get your state back.
So if you got an advance, there might be a delay in sending the $250 or $500 relief payment. “In these cases, the [payment] is first sent to an account created by the preparation service and must be transferred to the taxpayer’s account,” Moore said.
There could also be a problem with your direct deposit information. If that has changed, or something else has happened, and direct deposit has been rejected by your financial institution, depending on the state, you will receive a printed check in the mail.
According to TRD, more than 500,000 people have already received rebates through direct deposit. The state began processing rebates “in advance,” according to Moore. By law, the state has until July 31, 2022 at the latest to send the first “stimmy” payments.
Paper checks are slower than direct deposit – much slower
If you chose to receive your tax returns by paper check in the mail, you will receive your refund check the same way. According to TRD, approximately 200,000 taxpayers fall into this category.
The state can only print about 14,000 checks a day, and that printing started around May 18. With that, TRD spokesman Charlie Moore said the state expects it to be about halfway through printing paper checks by the end of the week. , June 3. The state says it should take another few weeks to print and mail the paper checks, assuming all goes well.
Another fun fact: Remittances on paper checks are processed in the order in which the tax returns were finalized. So the later you file, the further you are in line. “Early risers catch the worm,” if you will.
Taxes due? Your refund may be sent to the state, instead
If you owe taxes in 2021 and haven’t paid what you owe, your refund could be the property of the state of New Mexico. According to Moore, a rebate payment will offset any taxes owed by individual or joint taxpayers.
If you think you have a situation where you owe state taxes, you can check online. The state says people can log into the New Mexico TAP (Tappayer Access Point) system at the following web address: https://tap.state.nm.us/TAP/_/
Your tax return may still be being processed
TRD advises that if your tax return is still being processed or if you have requested an extension, your economic relief payment will be delayed. Again, you can check your tax status on the state’s TAP system website.
If you don’t have to file a tax return, you can still get a refund
Taxpayers who do not file a tax return can still access refunds on a first-come, first-served basis. The deadline for claiming these refunds for so-called “non-filers” has been extended to June 10, 2022.
Remember that all economic relief or tax refund payments come in two $250 installments for individuals and two $500 installments for joint filers or “households”. The first round of payments began in mid-May, while the second is expected in August. Rebates will go to everyone, regardless of earned income.
My situation does not apply. What can I do?
We may not have covered all possible scenarios. In this case, it may be helpful to check the state’s online FAQ page for tax refund questions. Click here to visit tax.newmexico.gov.