Refund is the act of reimbursing or giving back money to the individual who paid it. Tax refund is said to be a refund on taxes when the tax obligation is less than the taxes paid. Tax refund is essentially a refund being given by the IRS when one paid taxes in excess in a particular year than what he or she was supposed to pay. When getting a tax refund, one only gets money earned in that given year. Internal Revenue Service (IRS) is a governmental agency that is responsible for tax collection, tax law enforcement, and processing tax refunds for individuals. Individuals can be able to track the progress of their tax refunds with the IRS agency.
Individuals who qualify for the tax refund have too much money withheld from paychecks or withholding tax, and it sums up to more than total tax liability for the year. People can control tax refund amount by managing their withholding tax well. Assumption taken is the more the money that is withheld by the IRS from your wages in a given year, the more the tax refund since you have overpaid the IRS.
Everyone could like to receive a tax refund. A tax refund is essentially an interest-free loan that one gives to the IRS. In case, when very minimal is withheld from one’s wages, the individual is likely to pay much tax when the year ends because the individual has underpaid the IRS. The person is likely to be subjected to penalties and also interest charges due to under-withholding. It is recommended that one has to match his or her withholding tax relative to his or her actual tax liability. This will help control the amount being withheld from every paycheck.
People should learn to increase the odds of getting a tax refund else avoid confusion over refund. While a refund is never guaranteed from the IRS, individuals should learn about what they are to do in order to increase chances of receiving checks from IRS.
Plan ahead is basic for one to receive a tax refund. Taxpayers who submit their respective returns in time do not have to wait longer to receive a tax refund. Taxpayers who present their individual returns late have to wait longer. The IRS takes processes returns as they are received hence one who submits late will have to wait longer. Also depending on the type of tax return used; either paper tax return or e-file tax return, individuals using paper tax return have to wait longer to receive their tax returns.
Claiming tax benefits such as tax credits and tax deductions that one qualifies for increases chances of getting a tax refund. It is a good practice for one regularly to claim tax benefits that he or she qualifies to receive. If one does not claim the benefits that are available, he or she might end up paying more taxes than the expected, and this will decrease chances of getting a tax refund. Claiming tax breaks that one is eligible for increases the chances of receiving a tax refund.
According to IRS, the average refund statistics indicates that states in the rural areas tend to exhibit lower federal tax refunds. Taxpayers living in major states such as Connecticut, Nevada, and Texas receive the highest average tax refunds.
The statistics that were released by the Internal Revenue Service (IRS) show that the total number of tax returns that were received by the agency in the period of 2013 declined compared to the period of 2012. In addition, the average refund statistics show that the amount repaid dipped a little for the filling season of 2013. Statistics shows that individual income tax returns that were received by the Service through 2013 decreased by 0.7% as compared to a similar period in 2012. The average refund declined by 1.8% to $2,659.
Filing electronic taxes returns as opposed to paper tax returns, and double-checking information on tax returns to find if you accidentally omitted crucial information as errors can cause tax refund processing to be slower will increase the chances of getting tax refund faster. IRS electronic system has an online facility that can help in determining the status of a tax refund from one’s comfort. The IRS usually issues a higher percentage of refunds to taxpayers in the shortest time interval.