What is a Tax Refund?
Not everyone gets a refund at tax time. There are many people who have to pay in at this time. The majority of taxpayers have their taxes collected by their employer at a rate that is an estimate of your taxes for the year. The deductions that you are able to claim and your actual earning may cause you to pay too much into your taxes which is the reason for your refund. James Windsor, a CPA, said “When you pay more tax than you owe, the Internal Revenue Service returns the over payment as your refund.” So, basically you let the IRS borrow your money for the year.
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Will I Get a Refund?
Most people have an idea of what their tax return looks like for the year based on previous years. If you are unsure if you will get a refund or have to pay in and want to have a heads up, then you can look at tax estimate calculator’s that will give you a general idea. As the results are not always accurate for this, it will help out a little. I used TurboTax’s calculator to get my estimate. You should see what your’s looks like!
How Can I get a Bigger Refund?
First thing’s first! Do you file your own taxes or have a company file for you? If you have a sticky situation then it is best to talk to an accounting firm about your taxes. A CPA will have the best advice on how to proceed with your return. If you file them yourself, watch out for unnecessary filer fees from company’s like TurboTax and H&R Block. Keep EVERYTHING about your financial life in one spot. When it comes to filing your taxes you will need this information. You don’t want to miss any tax breaks you may get!
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How do Extensions Work?
Tax payers who are owed a refund rarely need to file an extension. If you owe taxes and you have more information that is needed to file your taxes than an extension is probably best for you. When you file for an extension, you fill out an IRS Form 4868 which tells the IRS that you need more time to file. The extension will move the deadline to file from April 15 to October 15. This can save you from getting tax penalties on late payments for not having taxes paid on time.
** Although an extension gives you more time to file your tax return, it does not give you more time to pay your taxes. Payments will still be due on April 15. The extension will help reduce penalties if you can’t pay those in full by the deadline.
How Long Will it Take to Get My Refund?
The IRS states that they issue refunds in less than 21 calendar days. In certain instances it can take a little longer. It also depends if you e-file or paper file and have direct deposit or paper check. E-filers with direct deposit tend to get their refunds faster. If your refund is taking longer than expected than an issue may have come up. If you return has errors, is incomplete, involved in identity theft or fraud, or needs further review than you can expect a delay on your refund. To find more information on getting your refund go to FAQ on IRS website.