“Tax” – the word itself might send the chills down many people’s spine.
People might pay taxes in time, but may not be aware of filing the tax returns or refund.
However, this year, the IRS believes it will be processing as many as 155 million tax returns for individuals in 2018 as per the report.
This refers to the fact that though many may not require filing the tax relief for federal taxes, they might do the same for the local or state tax.
Tax refund filing is as easy these days thanks to the e-filing option. It saves a lot of time and maintenance of paperwork.
What is a Tax Refund?
This is nothing new to those who have been paying taxes all these years.
However, those filing their taxes only this year will need to know a few terms like tax relief or tax refunds.
The IRS makes amendments to the rules of filing and even issues new forms electronically for the taxpayers to download and file easily.
The taxpayers will get to benefit with the Tax Refund.
IRS pays this return to the taxpayer if their liability is lesser than the amount they have paid as tax.
To claim this refund, the taxpaying citizens will need first to check the IRS website and the latest rules.
In case they find there are clauses where they need not pay extra fees or amount, they can file the tax refund.
The fact that this year, IRS has made a new amendment stating that people falling in the low-income slab will receive a tax refund.
However, the primary aspect to note is, only on filing, the citizens can get their tax refunds.
Usually, the US government processes and gives a tax refund in a few weeks itself.
If you are wondering “Where’s my tax refund?”- Just remember that IRS has a special tool allowing you to check if you are due to get any refund this financial year.
If you have not paid any federal tax, still, you might be entitled to get back some refunds of the taxes you paid.
Points to Follow to File the Tax Refund
- Get all the papers for income that you have then added the total amount you earn vis-à-vis the payment you have to make as a tax.
- The second step will be where you deduct the credits, healthcare expenses, childcare expenses and earned income tax credit.
- In case of confusion regarding any of these, at any point, you may call up the IRS for tax relief or refund. There are provisions for the elderly too, which you can check for your benefit.
- Check if you qualify for the tax refund filing at all. In many cases, you may not be due to get any refund that year. So, in that situation, you will not need to file any tax refund.
Starting from this tax year of 2018, the IRS plans to give one tax exemption per individual claimed as a dependent as per the reports.
Why Is There A Scope For Confusion?
The Internal Revenue Service or IRS comes up with the latest amendments to existing rules or might even get a new rule for every fiscal year.
The vigilant taxpayer or the professional tax consultant will keep an eye on the amount he has to pay.
He will also be aware of the changes and apply the same to the account of his clients falling in that category.
However, the first-timers or the ones about to pay the tax after marriage, or after acquiring a new home or car, will find the clauses confusing.
However, this said, it is not that confusing, and there is help available at every step.
The taxpaying citizens will need to remember to check through all the forms available for viewing and checking at the IRS site.
This will direct them on the tax relief they can expect and the way to file the return.
Likewise, there can be doubts regarding the injured spouse claims, or the offsets that might be due to childcare, or for unemployment compensation debts.
Clarifying with the IRS before filing is an option.
Moreover, there are tax consultants and professional financial advisors that might even guide the steps to follow while filling these forms.
This will save a lot of money of the individuals going for the tax filing and refund filing.
How and Where to File the Tax Refund?
As per the report, the top 20% of the Americans pay 87% of the income tax.
This stat is not going to show the number of tax refund applicants.
You will need to report the income you received in 2017 and the tax you paid against it in 2018.
This will help IRS to calculate the amount that you shall thereby receive as a refund.
Just as filing the tax and paying online, the same is also possible for the case of filing tax refunds or returns, this has been one of the primary reasons for success and the rise in a number of taxpayers too.
Over the years, the electronic dealing of tax relief and claiming the returns are all making life and the process simpler.
In fact, as per the reports, the IRS has received 126 million of the 141.5 million returns online only.
The convenience of filing aids in the speedy return processing for the IRS and correction or even checking the status of a process.
You can check “Where is my Tax Refund?” page on IRS’s official website.
This handy instruction guide will detail the tax refund filing system and who will be able to qualify for the same.
The page will be elaborating on the refund-related information of the current tax year.
You can view this page 24 hours after you file your tax refund via this electronic method.
On filing the Tax refund form online, you can expect IRS to respond to you in 21 days approximately.
In case your filing has some issues or complexities, they might take a little more time.
After 21 days, if you still have not received any information, you can call IRS at their mobile number for immediate tax relief or refund-related help.
On giving the token number at the time of filing, you will be able to get a clear idea of the status of your tax refund.
If you are a US-based individual who has filed for a refund, you can expect to view this information on “Where is my Tax refund” page until December.
However, you must file for this refund before July 1. In case you have filed after July 1, you find that the information will be available through the next year until you file for the next return.
At “Where is my Tax Refund,” you will be able to get the status elaborately through three big levels.
The first one is Return Received where you can see if the IRS has received your request for a refund.
The second level is Refund Approved where you can see if the IRS has approved for a refund.
The final level is the Refund Sent where IRS will inform you through a personalized message you are about to receive the refund.
You will not need to check the status of tax refund filing now and then.
You can simply go ahead and check the refund on the website itself.
They will pay the refund electronically via direct debit or another method as per your direction.
How To Go Ahead With Receiving The Tax Refund?
Now that you are all set to receive the tax refund, all that you have to do is to go to the tool of “Where is my Tax Refund?” and opt for the Direct debit method.
The IRS by default will opt for this method of sending your refund.
It also uses this method to pay back those who are filing on paper.
If you have a tax consultant, you can find out other methods and even opt for anything else.
However, it is undeniably very convenient and safe to do the monetary transaction via this method.
You can even request the deposits to be made to as many as three debit accounts.
Your tax advisor will recommend the exact process and give you the forms to fill to request or make any changes in the process.
More On Correcting The Tax Refund
Form 1040 famous as ‘the postcard-sized form’ and its variants like 1040 –NR EZ and others are ideal for correcting the tax refund amounts or make proper deductions.
Most of the time, people may wonder about the purpose of these forms.
Sometimes, the taxpayers realize that they have another credit or deductions, which they forget to mention while filing.
This is why IRS has come up with this tax refund form of 1040.
There is even a 1042-S form, which you can file for return if you have a source of income from the US.
The IRS will then follow a more detailed check and make a refund.
Thus, you can expect to wait as long as six months from the filing of this 1042-S forms until you hear from the IRS regarding your refund.
Now that you know where your tax refund is, leave a comment below if you have an effective way of getting your tax refund?