Some taxpayers are confused in the event of receiving surprise paychecks and just rush to the bank to cash it out. They just look unto it as stroke of luck smiling on them are unaware that they are overpaying taxes.
Tax refunds are returns of excess taxes, a taxpayer has paid to the Government or when the tax paid by an individual exceeds the actual tax liability
WHO IS ELIGIBLE FOR TAX REFUNDS?
Already established is the fact that tax refunds is as a result of paying an excess on tax owed the Government. Who really just wants to pay more to the Government?, Nobody at least now when everyone is complaining about the cash crunch.
Typically, tax refunds occur because employees have too much tax withheld from their paychecks. Also, many persons living in the US, receive tax refunds even when they haven’t paid federal Income Tax . This is courtesy of the Federal Earned Income tax Credit Scheme designed to support low income households especially those with children. Finally, some individuals who don’t engage professional financial personals or who leave filing their tax returns until the last minute may make estimated payments.
WHAT TO DO WHEN I DISCOVER I HAVE TAX REFUNDS?
On discovery that your tax paid exceeds your liabilities, it is wise to seek for refunds if the IRS doesn’t do that at . However, some people man the mistake of filing a paper tax return and as such elongate the period they have to wait for their tax refunds to be released..
The simplest way is to fill electronic tax return forms and await the IRS. After sending, the revenue body reviews your information and if it finds you worthy of a tax refund, usually refunds you within 10-21 days. It is also wise to file for the tax refunds earlier as early filers may receive earlier.
The refunds may be in form direct deposits onto your account, government bonds and checks.
WHAT CAN DELAY YOUR TAX REFUND APPLICATION?
After filing for a tax refund, it is usually hard to predict when exactly it will come out successful but these are tips on the reasons why your application may take some time.
Filing a paper tax return instead of electronically can reduce the chances of re Irving tax refunds faster and may take up to 6-8 weeks because of the longer time it takes to process your tax return. Also missing or adding incorrect information’s on your tax return form can cause your application to be processed slowly and will need a resubmission of an amended return. It will be important to check the mailing address where you sent the tax return form to crosscheck and avoid haven sent it to a wrong address. It is also wise to use the “where’s my refund?” online tool on the IRS website, to track your application.
In events of facing difficulty when accessing your tax refunds, it will be needful to call any of the IRS help lines for guidance. Also, when the paycheck lands, it is worth waiting before hitting the grocery. Maybe keeping that money in a savings account will make more sense.