Another surprising reason you might get a tax refund is that you’ve been audited. “We actually are able to correct people’s accounts all the time,” says Alyssa Maloof Whatley, a tax attorney who specializes in disputes with the IRS. You also might get an unexpected tax refund if you didn’t update your W-4 when you were supposed to.
Tax & Online Software Products
- According to the IRS, 90% of electronically filed tax returns are processed within 21 days from the e-file acceptance date.
- Here are some ways to invest your tax refund money and put it to good use.
- The Affordable Care Act spawned the Premium tax credit, to assist modest income earners who purchase health insurance coverage through state and federal health insurance marketplaces.
- In most states, residents are required to file a state income tax as well as a federal income tax return.
- The best way to track it is to use the IRS Where’s My Refund tool, which you can access 24 hours after you e-file your tax return (if you mail in a paper return, you have to wait four weeks before using the tool).
- It’s okay to have a little fun with your money, however, after you’ve got those covered.
Check with your financial institution or app provider to see if this is possible and to get the correct routing and account numbers. You can start checking the IRS refund tracker within 24 hours of filing your return electronically or within four weeks if you mailed it in. Whether you check on your computer or through the smartphone app, you’ll be able to follow your refund as it makes its way through the system. You’ll see a message that either says your return has been received, your refund has been processed or your refund has been issued. Gabriella Cruz-Martínez is a seasoned finance journalist with 8 years of experience covering consumer debt, economic policy, and tax. Before joining Kiplinger as a tax writer, her in-depth reporting and analysis were what is a tax refund featured in Yahoo Finance.
Report taxable income; don’t file before receiving key documents
A tax refund is a payment to the taxpayer due because the taxpayer has paid more tax than owed. “On the debt side, it starts with the interest rates,” says Joy. High-interest debt like credit card debt, personal loans that have a high interest rate, or a home equity line of credit can feel impossible to get on top of because the interest payments add up quickly.
How To Get Your Federal Tax Refund
You normally have a tax bill if your employer doesn’t withhold enough taxes from your paycheck. If you haven’t filed your tax return yet, you can use a tax calculator to estimate your federal refund. Gather paystubs, tax forms — such as W-2s or 1099s — and any other documents you may need to file. More than half of taxpayers turn to a tax professional for help filing a tax return. While most tax preparers deliver exceptional and professional service, selecting the Partnership Accounting wrong preparer can lead to financial harm. Tax season is underway, and the IRS has already received over 13.1 million tax returns through Jan. 31.
With fewer restrictions than other retirement tools, Roth IRAs permit penalty-free withdrawals of contribution amounts for any reason at any time. Did you know how you fill out Form W-4 with your employer can affect your tax refund amount? Here’s what you need to know about how Form W-4 affects your refund before you fill it out. Invest, an individual investment account which invests in a portfolio of ETFs (exchange traded funds) recommended to clients based on their investment objectives, time horizon, and risk tolerance. Companies selected for inclusion in the portfolio may not exhibit positive or favorable ESG characteristics at all times and may shift into and out of favor depending on market and economic conditions.
And if you want to file your own taxes, TurboTax will guide you step by step so you can feel confident they’ll be done right. No matter which way you file, we guarantee 100% accuracy and your maximum refund.Get started now by logging into TurboTax and file with confidence. The Affordable Care Act spawned the Premium tax credit, to assist modest bookkeeping income earners who purchase health insurance coverage through state and federal health insurance marketplaces. If you think we made a mistake with your refund, check Where’s My Refund or your online account for details.
