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Tax season is here, and taxpayers across the United States are finalizing their tax filing strategies, as a high tax bill is not desirable at all. Taxpayers intend to obtain as much tax deduction as possible, and several attributes affect the total amount of taxes that are to be paid by a taxpayer. Every taxpayer needs to be aware of the IRS refunds they are entitled to so they can lower their tax files. This blog will review everything one needs to know regarding tax refunds. One must be aware that inaccurate tax returns can delay their tax returns and even lead to penalties incurred by the taxpayer. Tax or IRS refunds are not to be confused with tax returns, as they function differently, and although both tax refunds and returns contribute to a lower tax bill, they are entirely different things. Moreover, tax refunds are only made available by the IRS and the government to individuals with AGIs that fall under a specific range. Tax brackets change yearly, determining the tax refunds certain taxpayers are entitled to.
Where is my IRS refund?
US Taxpayers only receive their tax refunds once the tax returns filed by them are processed successfully. It is suggested that taxpayers wait for 21 days after their tax returns have been filed, as it takes the IRS 21 days to process all the tax returns filed for the year at most. To check the status of your tax refund, you can head to the IRS official website and create or log into your online IRS account. The “Where’s My Refund?” tool can be used to check the status of your tax refund if you have e-filed your taxes. However, it may take up to four weeks or more if you have filed your tax returns on paper. You will be informed whether your tax refund has been accepted, sent, or denied through the tool, which is updated overnight every day.
Things you need to check your refund
You can head over to the official website of the Internal Revenue System to check your refund status. You need several credentials to check the status of your tax refunds. These credentials need to be filled in within the fields corresponding to them, and they include the following:
a. Your SSN or your taxpayer ID number
b. The status under which you file your taxes
c. The refund amount mentioned in your return
Frequently Asked Questions- FAQ's on Tax Refunds
1. Why did I not get the amount of tax return I had initially filed for?
- A part or the entirety of your tax returns might have been used to tax dues from the past. In addition, faulty deductions and credits filing might also cause you to receive tax returns different than what you had initially filed for.
2. How soon can I expect the IRS to send me my tax returns?
- It has been stated that it takes 21 days for the IRS to process all the returns filed for the year.
3. Why is my tax return taking longer than expected?
- Here are some of the reasons that might be delaying your tax returns:
a. You might have filed your taxes on paper, which takes a lot of time to process
b. You might have made errors or missed out on something important while filing for taxes.
c. It needs review because of suspicions regarding identity theft and fraud.
d. You might have claimed for EITC or Additional Child Tax Credit.
4. Where do I find information related to my tax returns?
- You can head over to the official website of the Internal Revenue System and check on the status of your tax refunds by using the “Where’s my refund?” tool. You must provide your SSN, tax-filing status, and the number of tax returns you have claimed in the online form.
5. How can I lower my tax bills as much as possible?
- You can lower your tax returns by claiming all the tax credits and deductions you are entitled to.
6. As a Non-Residential Alien, I am not required to pay federal taxes. However, I have already paid income tax on my revenues. How and when do I receive a refund for that?
- You must provide information regarding your income in the US and the withholding amount. You can declare this information on Form 1040-NR. Attach the document supporting your claims, and you shall receive the refund within six months!
7. What can cause a delay in the arrival of your tax refunds ?
- Several errors in your tax return can delay your tax refunds, including a mismatch in the reported income and the recorded income available to the IRS.
- You must also ensure that you apply for direct deposit to a bank account that matches a taxpayer's filing status. If you file taxes jointly with your spouse and request your refunds be transferred to a bank account registered to an individual and not a couple, expect your tax refund to be delayed.
- The IRS also seriously takes double dipping on dependents and possible identity theft cases. If you are suspected of indulging in either of them, expect your tax refund to be delayed!
- Another major issue that leads to delayed tax returns is outstanding tax bills. It is therefore suggested that you sort out the issues mentioned above to avoid a delay in the arrival of your tax refunds.
How can you get a bigger tax refund this year?
There are several ways to lower taxpayers' tax liabilities, which can help them avail of a larger tax refund.
a. The first step that a taxpayer can take to ensure a more significant tax refund from the IRS is to contribute to 401(k) and 403(B) accounts. Adding to your retirement accounts allows you to lower your taxable income, ultimately leading to lower tax bills and a higher tax refund.
b. Moreover, accounting for medical expenses that aggregate up to more than 7.5% of your AGI and business expenses can also lead to higher tax refunds.
c. In addition to the deductions mentioned above, there are several tax credits, like the Child Tax Credit and the Child and Dependent Care Credit, and credits for higher studies at colleges. These tax credits can also help taxpayers lower their tax bills, enhancing the tax refunds they are entitled to for some taxpayers.
Read our blog to know more on how to save taxes during 2022 tax filing season: Click here
Taxpayers must account for all the tax deductions and credits to obtain maximum tax refunds, as the IRS would not rectify such mistakes. However, inaccurate reporting of tax deductions and credits or an individual's taxable income can lead to tax audits, which is not desirable. The fear of a tax audit often makes several taxpayers leave several deductions and credits on the table. Taxpayers must know that a tax audit can not harm them if they have enough documents to back up the deductions or credits they are claiming.
It is suggested that taxpayers check their paycheck withholding to ensure they are paying only a little extra money as taxes. Massive amounts of tax returns imply that you paid the government a lot of money as a tax-free loan to the government. However, keeping tabs on all the expenses and income throughout the year is a hectic task. Being subjected to a tax audit induces stress as well. Therefore, you should seek help from professionals to help you with your tax affairs. This would save you a lot of money and effort, which can be invested into expanding your business or focusing on issues related to your business.
However, it is suggested that taxpayers check their paycheck withholding to ensure they are paying only a little extra money as taxes. Massive amounts of tax returns imply that you paid the government a lot of money as a tax-free loan to the government. However, keeping tabs on all the expenses and income throughout the year is a hectic task. Being subjected to a tax audit induces stress as well. Therefore, you should seek help from professionals to help you with your tax affairs. This would save you a lot of money and effort, which can be invested into expanding your business or focusing on issues related to your business. NSKT Global has ranked as one of the top financial consulting firms and has helped customers lower their tax bills and avoid stress during the tax season. NSKT Global is equipped with a workforce that can guide you through all the steps of the tax filing process and more! Click here to land on the official website of NSKT Global, so you can learn how to benefit from their services!
