How To Maximize Your Tax Refund
Many taxpayers deliberately have more tax withheld from their paychecks than is necessary in order to get a large refund each spring. However, overpaying on your taxes as a small-business owner reduces the working capital needed to run your business day-to-day. There are better ways to ensure you get a nice refund each spring. Here are a few suggestions:
Will I Get A 2020 Tax Refund
Typically, you receive a tax refund after filing your federal tax return if you pay more tax during the year than you actually owe. This most commonly occurs if too much is withheld from your paychecks. Another scenario that could create a refund is if you receive a refundable tax credit that is larger than the amount you owe. Life events, tax law changes, and many other factors change your taxes from year to year. Use the refund calculator to find out if you can expect a refund for 2020 .
Have Questions About An Offset Or Dont Think You Owe The Debt In Question
- If your refund was reduced to satisfy a Virginia Tax debt, and you have any questions or disagree with the bill, please contact Collections at .
- If the offset is for a debt owed to another agency, please contact the agency collecting the debt . We do not have any information about debts with other agencies. If you have already paid your debt in full, or you don’t;owe the debt for other reasons, the agency collecting the debt is responsible for returning any part of your payment that should not have been reduced.;
- If the offset was for a federal non-tax debt, and you need help contacting the agency, please call the TOP call center at ; or .
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The Fast Way To Get Your Tax Refund
There are a number of ways to get money early. Filing as early as possible will give you a better chance of being in the first round of returns processed by the IRS. Electronic or e-filing gets your return to the IRS quicker than mailing a paper return. The sooner they receive your return, the sooner they can begin processing. Choosing to have your refund directly deposited into your bank account instead of receiving a check in the mail is also faster.
Another way to get your refund early is to choose to load it onto an American Express Serve® Card. Your refund will be available up to two days faster* than standard direct deposit. Those two days can mean the difference between getting your refund on a Friday or waiting until Tuesday of the following week. It makes a big difference for most of our hard-working clients.
Do I Qualify For The New Child Tax Credit
The IRS created an online tool called the Advance Child Tax Credit Eligibility Assistant to help families figure out if they’re eligible for the advanced payments and if so, how much money they will receive.
Regardless of whether you’ve qualified for the child tax credit in previous years, you may want to confirm your eligibility under the new rules. The American Rescue Plan removed the minimum earning requirements for the 2021 child tax credit. It also drastically lowered the income ceiling for eligibility in order to directly target families considered most in need.
Parents who are married and filed a joint tax return with an adjusted gross income of $150,000 or less in 2020 and head of household filers with an AGI less than $112,500 qualify for the maximum monthly payments this year. Single filers who earn less than $75,000 can also qualify for the whole benefit, but the majority of eligible single parents are able to file as head of household.
Parents with an AGI higher than $150,000 for joint filers or $112,500 for heads of household wont be eligible for the full amount of the benefit, but most households will qualify for at least a portion of it. The credit phases out before cutting off entirely at $440,000 for joint filers and $240,000 for heads of households.
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Federal Refund Reduced Because Of A Virginia Tax Debt
If you have delinquent debt with us, we can submit a claim to the U.S. Treasury Offset Program to withhold or reduce any of your federal income tax refund by the amount of your tax debt. The claim may also be applied to eligible federal vendor payments for businesses with outstanding debt.;
If you receive a letter from us regarding a debt submitted to the TOP, and you think youve already paid the amount due or dont owe it for other reasons, please contact us.
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I Have Checked The Status Of My Return And I Was Told There Is No Record Of My Return Being Received What Should I Do
- The NCDOR will send a confirmation email to you once your electronically filed return is accepted. If you did not receive this email, there may be an error with your return and it is recommended you contact the Department at 1-877-252-3052 to confirm the return was successfully transmitted.
- You can mail a duplicate return to NC Department of Revenue, P O Box 2628, Raleigh, NC 27602, Attn: Duplicate Returns. The word “duplicate” should be written at the top of the return that you are mailing. Please allow 12 weeks for your original return to be processed before mailing a duplicate return copy to this address. The duplicate return must be an original printed form and not a photocopy and include another copy of all wages statements as provided with the original return.
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You do not need to worry about being taxed twice on this transaction.
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Myth: If You Got Your Previous Stimulus Payments Via Debit Card The Irs Will Just Reload It This Time
The facts: Like with the first two stimulus checks, the fastest way to get your stimulus check is to have direct deposit information on file with the IRS. Otherwise, the agency will have to mail you a paper check or prepaid debit card containing your funds.
It won’t, however, top up those old debit cards with your new $1,400. The law prohibits that. So there’s no need to panic if you’ve already thrown away the original debit card.
How To Use The Where’s My Refund Tool
To check the status of your 2020 income tax refund using the;IRS tracker tools, you’ll need to give some information: your Social Security number or Individual Taxpayer Identification Number, filing status — single, married or head of household — and your refund amount in whole dollars . Also, make sure it’s been at least 24 hours before you start tracking your refund.;
Using the IRS tool Where’s My Refund, go to the;Get Refund Status;page, enter your SSN or ITIN, filing status and exact refund amount, then press;Submit. If you entered your information correctly, you’ll be taken to a page that shows your refund status. If not, you may be asked to verify your personal tax data and try again. If all the information looks correct, you’ll need to enter the date you filed your taxes, along with whether you filed electronically or on paper.
The IRS also has a mobile app called;IRS2Go;that checks your tax refund status — it’s available in English and Spanish. You’ll be able to see if your return has been received, approved and sent. In order to log in, you’ll need some information — your Social Security number, filing status and expected refund amount. The IRS updates the data in this tool overnight, so if you don’t see a status change after 24 hours or more, check back the following day. Once your return and refund are approved, you’ll receive a personalized date by which to expect your money.;
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Unemployment Tax Refund Update: 10 Key Facts About Your Irs Money
Still waiting on your 2020 unemployment tax refund? Here’s how to view your tax transcript to get some clues about your money.
The IRS has sent 8.7 million unemployment compensation refunds so far.
If you paid taxes on your unemployment benefits from 2020 and filed your return before the American Rescue Plan was passed in March, you could be getting a refund this September. Here’s why: The;first $10,200 of 2020 jobless benefits, or $20,400 for married couples filing jointly, is considered nontaxable income. Since May, the IRS has been making adjustments on tax returns and issuing refunds averaging $1,686 to those who can claim that tax break.;
The frustrating thing is that those remaining payment dates are unclear. The last batch of refunds, which;went out to some 1.5 million taxpayers, was over a month ago. The IRS has not issued any news about a timeline for this month, except to say “summer,” which officially ends Sept. 22. While some have reported on social media that they have pending dates on their IRS tax transcripts,;many other taxpayers;say they’re fed up because they haven’t received any money or updates at all.;
Amounts That Are Not Taxed
You do not need to;report certain non-taxable amounts as income, including the following:
- amounts that are exempt from tax under section 87 of the Indian Act
- most lottery winnings
- most gifts and inheritances
- amounts paid by Canada or an allied country for disability or death of a war veteran due to war service
- GST/HST credit and;Canada child benefit payments, including those from related provincial or territorial programs
- family allowance payments and the supplement for handicapped children paid by the province of Quebec
- compensation received from a province or territory if you were a victim of a criminal act or a motor vehicle accident
- most amounts received from a life insurance policy following someone’s death
- most types of strike pay you received from your union, even if you perform picketing duties as a requirement of membership
- NoteIncome earned on any of the above amounts is taxable.;
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Should I File An Amended Return
Although the IRS says there’s no need to file an amended return, some early filers may still need to, especially if their recalculated AGI makes them eligible for additional federal credits and deductions not already included on their original tax return.
The IRS, for example, can adjust returns for those taxpayers who claimed the earned income tax credit and, because the exemption changed their income level, may now be eligible for an increase in the tax credit amount which may result in a larger refund. That said, taxpayers will need to file an amended return if they didn’t originally claim the tax credit, or other credits like the additional child tax credit, but now are eligible because the exclusion changed their income, according to the IRS. These taxpayers may want to review their state tax returns as well.
Withholding From Unemployment Compensation
Again, the $10,200 exemption only applies to unemployment compensation received in 2020. So, to avoid a big tax bill when you file your 2021 return next year, consider having taxes withheld from any unemployment payments you receive this year.
Contact your state unemployment office to have federal income taxes withheld from your unemployment benefits. You may be able to use Form W-4V to voluntarily have federal income taxes withheld from your payments. However, check with your state to see if it has its own form. If so, use the state form instead.
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Become Tax Credit Savvy
Tax credits;usually work better than deductions as refund boosters because they’re a dollar-for-dollar reduction of your taxes. If you get a $100 credit, you get $100 off your taxes. Many Americans leave money on the table when it comes to claiming tax credits.
- Did you know that 20% of eligible Americans don’t claim the;Earned Income Tax Credit? If you meet the guidelines, you may be eligible for the EITC, even if you’re single with no children.
- If you have no qualifying children, the maximum credit amount is $1,502 for 2021.
- If you have kids, it also pays to claim the;Child and Dependent Care Credit.
The Consolidated Appropriations Act was signed into law on December 27, 2020 as a stimulus measure to provide relief to those affected by the pandemic. For tax year 2020, the CAA allows taxpayers to use their 2019 earned income if it was higher than their 2020 earned income in calculating the Additional Child Tax Credit as well as the Earned Income Tax Credit . For 2021, taxpayers can use either their 2021 or 2019 income to maximize the credit.
If you’re a college student or supporting a child in college, you may be eligible to claim valuable;education credits.
Tax credits for energy-saving home improvements;can also keep more money in your wallet throughout the year and at tax time.
How Can I Get Money Back Without Income
Believe it or not, the federal tax code has many provisions that allow you to get a tax refund, even if you do not have income. If you had any federal tax withheld from any payments or paid estimated taxes during the taxable year, you will get a refund of those payments if you did not have any income. The rest of the conditions that allow a refund when no income was earned are tax credits.
Each of these credits has its own requirements and some may require you to have earned income, so you may not be eligible if you had zero income. A few tax credits such as earned income credit, additional child tax credit, health coverage tax credit, refundable credit for prior year minimum tax, making work pay credit, first-time homebuyer credit, American opportunity credit, federal tax on fuels credit and the adoption credit are among some you may or may not be eligible to claim.
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What An Irs Treas 310 Transaction Means
If you receive your tax refund by direct deposit, you may see;IRS TREAS 310;listed for the transaction. The 310 code simply;identifies the transaction;as a refund from a filed tax return in the form of an electronic payment . This would also apply to those receiving an automatic adjustment on their tax return or a refund due to March legislation on tax-free unemployment benefits. You may also see;TAX REF;in the description field for a refund.
If you received;IRS TREAS 310;combined with a;CHILD CTC;description, that means the money is for a monthly advance payment for the enhanced;child tax credit.;
If you see a;449;instead of;310, it means your refund has been offset for delinquent debt.
Estimated Irs Refund Tax Schedule For 2020 Tax Returns
In prior years, the IRS issued its refund tax schedule to provide a timeline when you can expect to receive your tax refund. While the IRS no longer publishes a refund tax schedule, we put together an estimate when you might expect to receive your tax refund based on previous years.
Date IRS Accepts Your Return
Expected Direct Deposit Refund Date
Expected Mailed Check Refund Date
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