IRS Tax Refund: Helpful Guide

As soon you new year approaches a lot of us start thinking about Taxes and whether we need to pay or will be getting a refund back this year. In this article, we are discussing Under Which Circumstances Might you receive a Tax Refund from the IRS?

What is a Tax Refund?

Tax Refund is a process that happens when IRS checks numbers on your tax return and verifies that your Tax Liability is less than what you already paid to the IRS in payments. IRS then refunds the extra amount via check or bank deposit.

 

For example: If your tax liability was $3000 Dollars and during the year you paid 1,000 and you have credits totaling $4000.

Then you will take your liability         $3000

Minus Taxes Paid/Withheld               $1000

Minus Credits                                       $ 4000

Then you will get a Refund back of $2000

 

Under Which Circumstance Might You Receive a Tax Refund from the IRS?

• Overpayment

  You might receive a Refund from the IRS if you paid more than you should through payroll tax deductions(through your paycheck or W2), Withholding from your retirement form 1099R, Withholding form your social security, Estimated Tax Payments(Usually Paid Quarterly) or any Prior year Overpayment Applied.

• Credits

  Tax Refund can also happen if you have large amount of credit that is applicable during the year for example if you have children and you are receiving child tax credit or you installed solar on your home and as a result you are getting a Solar credit. In this case your credit plus you what you already paid may be larger than your tax liability. As a result your

• Lower Tax Liability

  You can also receive a Tax Refund from the IRS as your tax liability can lower during the year for many reasons. For example, you can purchase equipment or vehicle 6000 pounds or over helping you lower your taxable income. You can have have lower liability as you can have lower sale or higher expenses for unforeseen circumstances lowering your over all profit and resulting in a Tax Refund.

Where is My Tax Refund?

If you are trying to find out the status of your refund you can check online by clicking on this IRS Link

You need to following Information:

1. Your Social Security Number
2. Your Filing Status(Single, Married Filing Jointly, Head of Household, Married Filing Separately or Qualifying Widower).
3. Refund Amount

If you have any challenge checking the refund amount online you can call IRS over the phone by calling:

Telephone number for IRS tax refund

800-829-1040 or Try 866-464-2050

IRS Amended Tax Return Refund Status

If you are trying to find out the status of your Amended return refund you can check online by clicking on this IRS Link

You need to following Information:

1. Your Social Security Number
2. Date of Birth
3. Zip Code

If you have any challenge checking the refund amount online you can call IRS over the phone by calling: 866-464-2050

When Can you check the status of Amended Return

• Your amended return will take up to 3 weeks after you mailed it to start showing up in IRS System
• Processing it can take up to 16 weeks from the date of mailing

Telephone number for IRS Amended tax refund

800-829-1040 or Try 866-464-2050

Can IRS take your State Tax Refund?

IRS and Most of all states work together to make sure they can collect taxes from individuals who are not paying and are not on payment plans. Under the State Tax Levy Program the IRS has the right to levy your state tax refund and apply against any previous years back taxes.

If IRS decides to Levy your State Refund, State Income Tax Department will mail you a “Notice of the Levy”

 

In summary there are various reasons you can get a refund but it is more important that your tax return is filed correctly and accurately. Under Which Circumstance Might You Receive a Tax Refund from the IRS is important to know as you need to plan accordingly. You can check your Tax Return and Amended Tax Return Status online by visiting the links provided above. If you have hard time find the info online, then you can always call the IRS on the numbers given above.

Learn More>>>

What Small Business Expenses are Deductible

Bank Statements: What you need to Know

IRS Tax Credits

Do you want to apply your refund to next year?