Taxpayers should start getting their refunds this month, given the tax season officially ended in April of last year. When you have overpaid the IRS on your tax liability, you will receive a refund.
According to historical IRS data, over two-thirds of filers receive refunds after submitting their taxes, though not everyone will.
The Internal Revenue Service (IRS) will be distributing refunds to taxpayers throughout the course of the upcoming weeks. Be careful to see whether you are eligible for a refund this week.
Your refund may be withheld by the IRS
Even while a lot of taxpayers anticipate receiving their refunds this week, some might discover that they are being delayed.
Although there are several reasons why this could happen, it usually happens when you still owe money to the IRS or other government agencies.
For instance, the IRS may delay your federal tax refund until you settle your outstanding state taxes if you have already paid your federal taxes.
Additional grounds for withholding your refund include unpaid federal student loan balances or unpaid child or spousal support.
In order to find out how to proceed with the payments you could be due, you need to get in touch with the Bureau of the Fiscal Service (BFS) of the U.S. Department of the Treasury if you find yourself in a situation where your refund is being withheld.
Next week, who will receive a tax refund?
You have two options for filing your taxes: either electronically or by mailing your returns. In general, filing online will result in a quicker processing time for your refund than mailing your tax return paperwork.
Although refunds are given out within 21 days, processing time for e-filing refunds is typically closer to three days.
You can begin anticipating a refund from the IRS next week, if you filed your taxes at the end of April, right before the deadline, and you chose to have your refund sent to you via direct deposit.
You can use the IRS “Where’s My Refund?” service to find out the status of your return. The typical taxpayer received a return of $2,945 this year, according to IRS numbers released on April 25.
Use the tool to find out where your refund status is or to verify whether you are truly expecting a refund if you are anticipating one but have not yet received one.
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Ways to reduce your federal tax obligation
There are ways to lower your overall tax bill for the following year if you discover that the IRS is withholding your refund because you still owe the government money in taxes.
Making sure you are applying for any tax credits that might be applicable to you is one approach to accomplish this. To lower your total liability, review the qualifying requirements and submit an application the following year.
However, as your taxes increase with your income, you should also look into ways to reduce your tax liability if you have various assets or income-generating sources.
To lower their overcome liability, taxpayers with assets may, for instance, claim a capital loss. Even if you are in a situation where you are unable to pay your income taxes, you should always make sure that you submit them.
This will guarantee that you don’t accrue penalties and raise your liabilities even more.
