How to Get a Tax Refund from IRS if you Over Paid and What to do with It.
How to Get a Tax Refund: Every year billions of US citizens submit a request for tax refunds from the IRS and more than half of them suffer from rejections. This article will help you learn how you might receive a tax refund from the IRS.
What is a Tax Return?
A tax return is a form you file with the IRS annually that outlines your income, expenses, investments, and other tax-related information.
What is a Tax Refund?
You get tax refunds when you pay more taxes to your state government or the federal government – through payroll withholding, for example – than your actual tax liability. In this case, the government will cut you a check for the amount overpaid.
Who Gets a Tax Refund?
Filers who overpaid their taxes during the year can expect to get your tax refunds. You’ll need to file your tax return in order to receive the money owed to you by your state or the federal government. Don’t think of a refund as “free money” – it’s actually already yours.
Where Is My Tax Refund?
The IRS states that most tax refunds are delivered within 21 days of filing. Tax filers who want to know when their refund will arrive can track the status of their refund, which they can opt to have delivered via an electronic transfer or as a paper check, through the “Where’s My Refund?” tool at IRS.gov or by using the IRS2Go app. If it has been more than 21 days since you filed online or more than six weeks since you mailed a paper tax return, “Where’s My Refund?” directs tax filers to contact the IRS.
Keep in mind that the IRS may hold onto your refund if you have certain outstanding debts, such as child support or student loan bills. Paying those debts on time will ensure that you get your entire refund.
Going digital will also help hurry along with your refunds. You’ll get your refund faster if you use e-file and direct deposit, according to the IRS.
What Should I Do With My Tax Refund?
Once you receive it, use your refund wisely. While treating yourself isn’t always a bad idea, if you have more pressing financial obligations or your emergency fund needs a boost, use some of that money to help reach those financial goals. It is advisable to pay off credit card balances and manage debt. Consider your financial goals for the coming year and let your tax refunds help you reach them.