Monday, March 25, 2024

When Do You Get Tax Returns

Don't Miss

Im Counting On My Refund For Something Important Can I Expect To Receive It In 21 Days

First Time Filing a Tax Return?

Many different factors can affect the timing of your refund after we receive your return. Even though we issue most refunds in less than 21 days, its possible your refund may take longer. Also, remember to take into consideration the time it takes for your financial institution to post the refund to your account or for you to receive it by mail.

Why It’s Critical To Have All Tax Forms Before Filing

When filing your return, it’s important to accurately report details from all tax forms, such as the W-2 from your job, 1099-NEC forms for contract work and 1099-G for unemployment income.

Known as “information returns,” these forms are sent to taxpayers yearly by employers and financial institutions to report taxable activity, with copies going to the IRS. Your tax return should match these forms, assuming the details are correct.

When the IRS receives your income directly from reporting companies, the system automatically flags mismatching returns. That’s why it’s better to wait and include the correct details, experts say. Otherwise, you’ll risk possible error notices and penalties later.

File Your Tax Return Electronically

Combining direct deposit and electronic filing can greatly speed up your tax refund. Since filing electronically requires a tax software program, it can flag errors that may cause processing delays by the IRS. These errors can include incorrect Social Security numbers, dependents dates of birth, and misspelling of names.

You can electronically file your tax return for free using the IRS Free File Program if your adjusted gross income is less than $73,000. Most simple tax returns can also generally be filed for free with commercial tax software providers, although you may be charged to file your state taxes.

If your tax situation is more complicatedif you sold property, paid business expenses or earned investment or business income, for exampleyou should consider hiring a tax professional. Having a knowledgeable tax professional, such as an enrolled agent, certified public accountant , or other tax professional, can help review your tax return and identify any mistakes that may slow down the processing of your tax refund.

Featured Partner Offers

On Cash App Taxes Website

Recommended Reading: Who Can File Ez Tax Form

Estimated 2023 Irs Income Tax Return Chart

IRS Accepts an E-Filed Return By: Direct Deposit Sent :
IRS may start accepting income tax returns asearly as Jan. 23, 2023.
May 22

IMPORTANT: If you file electronically , the IRS will notify you of the actual date they accepted your return. This is often 1-3 days from the time you actually hit the file or submit button, and it is this date that you need to use on the left side of the above chart.

Taxpayers who mail a paper version of their income tax return can expect at least a 3-4 week delay at the front-end of the process, as the return has to be manually entered into the IRS system before it can be processed.

Be Safe Hire a Professional

Taxpayers who use a professional, such as a CPA or EA, can ask that professional for the estimated date of their tax refund, and they can be more confident that their taxes have been properly filed.

There are also apps for Apple, Android and other devices that help track refund status.

Other Notes:

In general, the IRS says that returns with refunds are processed and payments issued within 21 days, and often in as little as 10 days. For paper filers, this can take much longer, however. The IRS and tax professionals strongly encourage electronic filing.

What If You Cant File Your Income Taxes By April 15?

Tax Refund Estimators:

Protect Yourself From Tax

When You Get Your Tax Return and Start Buying Unnecessary Stuff  ...

Tax ID theft occurs when someone steals your personal information to file a tax return using your personal data. Usually, the fraudulent tax filer will use your Social Security number to file your return in order to collect a refund. To protect yourself from tax ID theft, you can obtain a six-digit Identity Protection PIN from the IRS. IP PINs are known only to you and the IRS so the IRS is able to confirm your identity when you file your return. Learn more about how the IP PIN works and how to apply.

You May Like: What Is The Current Capital Gains Tax Rate

The Tax Deadline Is April 18 2023

Why is the 2023 tax deadline April 18 instead of April 15? Because April 15, the standard deadline, falls on a Saturday. When the deadline falls on a weekend, the IRS moves the deadline day to the next business day. However, that Monday, April 17, 2023, is Emancipation Day, a holiday recognized in Washington, D.C., where the IRS is headquartered.

Depending on when a taxpayer files, they can often receive their tax refund payments within only 2-3 weeks.

Paused Student Loan Payments

In March 2020, the U.S. Department of Education gave millions of Americans the option to pause monthly student loan payments, and nearly 90% of borrowers have accepted.

While the break offered relief through 2021, theres a trade-off at tax time: no write-off for student loan interest.

Typically, borrowers may deduct up to $2,500 of interest, depending on how much they paid, and its an above-the-line tax break, reducing gross income, even without itemizing deductions.

It could be $500 or $600 at the end of the day, in real money, after that adjustment.Patrick AmeyAdvisor at Financial Advisory Service, Inc.

The $2,500 benefit starts to phase out in 2021 with modified adjusted gross income over $70,000 for single filers and $140,000 for joint returns.

Single borrowers above $85,000 or couples filing together over $170,000 arent eligible.

Its significant for lower to middle-income filers making student loan payments, said Patrick Amey, a CFP and advisor at Financial Advisory Service in Overland Park, Kansas.

It could be $500 or $600 at the end of the day, in real money, after that adjustment, he said.

Read Also: Can I File My Taxes Online Now

The Irs Isn’t Taxing Money You Send To Family And Friends

Rumors have circulated that the IRS was cracking down on money sent through third-party payment apps to family and friends, but that isn’t true. Personal transactions involving gifts, favors or reimbursements are not considered taxable. Some examples of nontaxable transactions include:

  • Money received from a family member as a holiday or birthday gift
  • Money received from a friend covering their portion of a restaurant bill
  • Money received from your roommate or partner for their share of the rent and utilities

Payments that will be reported on your 1099-K must be flagged as payments for goods or services from the vendor. When you select “sending money to family or friends” it won’t show up on your tax form. So that money from your roommate for her half of the restaurant bill is safe.

If you do receive a 1099-K for money that was sent from a family member or friend, reach out to the payment processing company to get this transaction corrected.

How Much Can I Get With The Ctc

Where’s My Tax Refund? How To Get Your Money Faster

Depending on your income and family size, the CTC is worth up to $3,600 per child under 6 years old and $3,000 for each child between ages 6 and 17. CTC amounts start to phase-out when you make $75,000 . Each $1,000 of income above the phase-out level reduces your CTC amount by $50.

If you dont owe taxes or your credit is more than the taxes you owe, you get the extra money back in your tax refund.

Recommended Reading: When Are Quarterly Estimated Taxes Due

How Do Tax Returns Work

Whether you are a salaried or hourly employee, or you are a freelancer or independent contractor, you’ll file your taxes by filling out IRS Form 1040.

You’ll report your income and tax deductions on this form. Your income includes money you earn from wages, salary, tips, dividends, alimony, business income, capital gains, individual retirement account distributions, Social Security benefits and other money sources.

You can also claim deductions that lower your yearly taxable income. Allowable deductions might include payments you’ve made throughout the year to an IRA, the money you’ve paid in interest on student loans and any contributions you’ve made to a health savings plan.

When you subtract your deductions from your yearly income, you arrive at your adjusted gross income. This is your taxable income, the income on which you must pay taxes.

Many taxpayers will have to file tax returns with both the federal government and their state government. That’s because most states require their residents to pay income taxes.

As of 2021, just nine states didn’t charge income taxes. Seven of these states Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming charge no income taxes at all. New Hampshire and Tennessee don’t levy income taxes on the wages of its residents, but they do tax investment income and interest.

Some larger cities also charge taxes for working and/or residing in them. Check your citys guidelines to see if this applies before filing.

Tax Refund Calculator: How Much Will Margaret Get Back In Taxes

How much does she stand to get back?

Subtract the red circle from the blue for the refund.

Uncle Sam might owe Margaret $14,465 when all is said and done. And if her situation doesnt change in 2021, her refund will actually grow to $20,584.

NOTE: Everyones tax situation is unique and any online tax refund calculator will, at best, provide you with a rough estimate of how much youll get back. The two examples above are incredibly simple and dont fully capture the nuances of someones actual financial situation.

Play around with them and be as specific as you can. The more details you can provide the better of an idea youll have of what youll receive for your refund.

So now you know roughly how much youll be getting back and youre ready to collect the money Uncle Sam owes you.

Before you hoist your Dont tread on me flag and march down to the IRS building to get your money, you should know about all the ways you can get your tax refund.

Don’t Miss: Where To Find Paper Tax Forms

What To Expect From Your Tax Refund In 2023

Changes are coming for the 2022 tax-filing year that could impact the size of tax refunds in 2023.

“The news for this tax season surrounds the tax credits and deductions that were not extended into 2022,” said Mark Jaeger, vice president of tax development at TaxAct. Legislation passed in the wake of the COVID-19 crisis expanded some tax credits in a bid to provide economic relief for Americans. Many of those changes are expiring for the 2022 tax-filing year.

These are the tax credits and changes that filers should be most aware of, according to experts The Ascent spoke to.

Why Was I Taxed On My State Refund

How To Get A Tax Return Transcript In 10 Minutes

You dont have to pay tax on your state refund unless you received a tax benefit by claiming the payment as an itemized deduction in a previous tax year. When this happens, youre taxed, and it may seem like youve been taxed twice. This is because you claimed a deduction for a payment that was returned to you as a refund. If you didnt claim the state tax payment as a deduction, you dont have to report the refund as income.

Also Check: How Much Tax Will I Get Back Calculator

How To Get Copies Of Tax Returns

Even though tax transcripts are free of charge and can be delivered much more quickly than copies of your tax return, there may be times when youll want the full return rather than just the transcript. While lenders will accept the transcript, you may prefer having a full copy of your previous returns for your own records.

  • If so, you can request a copy of your tax return using IRS Form 4506, Request for a Copy of Tax Return.
  • You can obtain copies of your tax returns for the current year and up to the six previous years. However, unlike tax transcripts, obtaining copies of your tax returns comes with a fee of $43 for each year requested.
  • If youre filing the request by mail and plan to send a check, youll need to make your check payable to the United States Treasury. However, if youre impacted by a federally declared disaster, the IRS will waive the fee if the copies are needed to apply for disaster relief benefits or to file amended returns claiming disaster-related losses.
  • For jointly filed returns, either spouse can request a copy. The signature for only the requesting spouse will be required on Form 4506.
  • Heres a major reason why you should request tax transcripts, rather than copies of tax returns, if you can possibly avoid it: It can take the IRS, up to 75 days to provide copies of tax returns.
  • If you need your tax information in less time, transcripts will arrive in only a fraction of the time.

Tax Rebates: Frequently Asked Questions

Idaho is giving eligible taxpayers two rebates in 2022:

  • 2022 Special Session rebate: On September 1, 2022, a Special Session of the Idaho Legislature passed and Governor Brad Little signed House Bill 1 authorizing a tax rebate to full-year residents of Idaho.
  • 2022 rebate: On February 4, 2022, Governor Little signed House Bill 436 that provided a tax rebate to full-year residents of Idaho.

Recommended Reading: Where Can I Cash My Tax Refund Check

Do The Math And See If Itemizing Is Worth It

The Tax Cuts and Jobs Act of 2017 changed itemization for millions of Americans. Before, it used to make a lot of sense for homeowners to itemize as their mortgage interest payments and other expenses added up to more than the standard deductions.

But the TCJA pushed the standard deduction up dramatically. The standard deduction for the 2022 tax year is:

  • $12,950 if you file single or married filing separately.
  • $19,400 if you file as head of household.
  • $25,900 if you are married and filing jointly.

This means gathering medical receipts and mortgage interest calculations might not do anything for you. But, if your itemized deductions would surpass these numbers, file Schedule A.

No : Gather Your Information

Is This the Year You File Your Tax Return Electronically?

Its easy to get slowed down in filing your taxes because you dont have all the necessary information. So the best approach is being proactive.

If your taxes are straightforward, there may be little more to it than gathering personal ID information, such as Social Security numbers and birthdates, along with your W-2.

Heres some of the information youll want to have in advance:

  • Social Security number, tax ID number or employer identification number
  • Total income. This can be calculated once you have all your forms from employers or pensions, like W-2s and 1099s. It should also include interest and dividend income, which your bank or brokerage should provide.
  • Total deductible expenses. Some common deductions include contributions to health savings accounts , traditional individual retirement accounts , student loan or mortgage interest and charitable donations. Depending on your line of work, you may also have related tax credits or tax-deductible expenses. You may also have to provide proof of contributions, or receipts, if applicable.
  • Taxes youve paid this year. For example, state or local income taxes paid beyond your normal withholding. Self-employed individuals who make quarterly estimated payments must also provide information about the amounts paid and corresponding dates.

Also Check: How Can I File My Ga State Taxes For Free

How Long Do Tax Refunds Take To Be Paid

Should you be eligible for a tax refund, it generally takes less than 21 days for the refund to be paid. This clock starts from the date when this amount is agreed with the IRS.

If you file online, you can check the status of your return to see if you are due a refund so long as 24 hours have passed from the time you filed. This can be done on the IRS2Go app or through Wheres My Refund? on IRS.gov.

If you file by post, though, then you may have to wait around four weeks before you receive an update on your tax returns status.

In either case, the tax refunds will eventually be paid to you.

Recommended Reading: Efstatus.taxact.com

Why Would Your Refund Come By Snail Mail

There are a couple of reasons that your refund would be mailed to you. Your money can only be electronically deposited into a bank account with your name, your spouses name or a joint account. If thats not the reason, you may be getting multiple refund checks, and the IRS can only direct-deposit up to three refunds to one account. Additional refunds must be mailed. Also, your bank may reject the deposit and this would be the IRS next best way to refund your money quickly.

Its also important to note that for refunds, direct deposit isnt always automatic. Some are noticing that like the stimulus checks, the first two payments for the child tax credit were mailed. Just in case, parents should sign in to the IRS portal to check that the agency has their correct banking information. If not, parents can add it for the next payment in September.

Dont Miss: When Can I Expect My Unemployment Tax Refund

Read Also: Can We File Taxes Now

Be Aware Of Life Change That Impact Credits And Deductions

Changes to tax credits aren’t the only thing filers should be mindful of this coming tax season — they should also be cognizant of their own life changes.

“My biggest piece of advice is to be aware of possibilities for new-to-you credits or deductions based on life changes or if you received them in years past — changes and different amounts could be big on your 2022 tax return,” said Mark Steber, chief tax information officer at Jackson Hewitt.

More articles

Popular Articles