Under the term of Tax Refund is understood the amount of tax that a person overpaid during the tax year. It can be the excessive amount of tax withdrawn from wages or pension, or else; in any case when a person paid more than they are liable in accordance to the IRS requirements, they are entitled to income tax refund from IRS. The repayments are usually made in the form of a check or electronic money transfer.
In case of electronic filing, the refund can be expected in about 3 weeks since the tax day; 6 weeks in case of paper variation. On the website of IRS you can check the status of your refund.
The official statistics of IRD claims that about 77% of Americans get refund in the average amount of $2,100 per annum per income.
One of the major questions that bothers everyone is how to calculate your tax refund amount. In fact, the amount of the refund depends on the total amount of tax that is owed and the amount of the tax that was withheld from a taxpayer’s paychecks throughout the year.
Tax Refund Calculation
First step in calculating your tax amount is calculating your tax. This is the total that you owe to the state after all the deductions and adjustments. The final amount is the one you actually owe.
Look at the line 72 on your income tax form – it is the amount of taxes you paid throughout the year. It comprises from the amount indicated in line 62 (tax withheld by employer) as well as estimated tax from line 63 and also some credits that may or may not apply to you.
In order to calculate your tax refund, calculate the difference between the two – this is what you are supposed to get as a refund. If there is a difference (it will not necessarily be the case), write down the amount in the line 73. Further, in lines 74 and 75 choose the way to get your refund.
Tax Refund Obtaining
As it has been mentioned, there are two ways to claim your refund.
- In case if you eFiled your return, you are likely to expect your refund in about 3 weeks after your filed your return. Electronic files are processed faster than paper ones; the latter may take more than 6 weeks. It will come as a cheque.
- Or, it can be in a form of a direct deposit to your bank account. It is faster and safer and you can indicate up to 3 different accounts for your refund.
Tax Refund Status Check
You can start checking your refund status 72 hours after you sent your eFile (or 4 weeks after you sent your paper file). On the official IRS webpage there is a special system “Where’s My Refund?” It is easy to operate and you just need to indicate your Social Security Number as well as your current status of filing and the amount you expect to receive as a refund.
Tax Refund Problem Solving
There can be very different issues concerning refund amount. They can be different – the amount is incorrect, or it is late, or wasn’t issued at all. It could have been even lost or stolen. In cases like this you can refer directly to IRS service either by e-mail, or call them directly to their landline.
In case you file your return with TurboTax, you can check both the status and movement of your refund on their website; you can also send all the claims about refund problems to their consumer support. They take their job very seriously and in all the ways alleviate the job of both tax filing and tax refund obtaining to a very considerable degree.
As of the statistics from IRS official files, about 70% of tax filers claim tax returns and the average amount of a return per filer is $2,689 as of 2014. Most taxpayers ask for the refunds to be deposited to their bank accounts; however, a small percent prefers a traditional refund. Before 1999 all tax forms were filed in paper. Since that time the majority of tax forms are filed electronically; which speeds up and simplifies the process of filing to a considerable amount. The same refers to tax refunds – electronic repayments are faster and are considered to be a more secure option; besides, the process involves fewer mistakes. It is also much faster to do with such services as TurboTax as they simplify the entire tax filing and refund process to a really great extent.