How to Claim Your Tax Refund
If you work as an employee, you’re certainly aware that a portion of your salary is deducted every month as an income tax. While many of us find taxes a huge pain, it’s a responsibility that we all should do. The good news is that some or all the amount withheld from your income can be given back to you. What? Really?
But how can this happen?
This can happen if too much money is withheld from your paychecks. If you’re an employee, chances are your employer has deducted more than the maximum amount of contributions you have to pay this year; and therefore, you could be entitled to claim a refund of the excess contributions.
How can you claim your tax refund?
All employers are required by law to send employees W-2 statements at the end of the financial year. This W-2 report includes all the details about your earnings, as well as the taxes withheld from your earnings for that year. You will need this form when claiming your tax refund. If you do not receive your W-2 form, contact your employer for verification or the tax authority for assistance.
When you received your W-2 form, it’s very important to review it carefully to ensure that it’s correct and accurate. If you find out that it’s wrong or too much tax was taken from your paychecks, you can report it to the tax authority when filing your tax return.
When can you receive your refund?
After you’ve filed your tax return, the tax authority will review your application and see if you’re eligible to receive tax refund. Once your refund is approved, the tax authority will give you a personalized date of when you will receive your refund. You can start checking your status using the agency’s Where’s My Refund Tool or IRS2Go mobile app within 24 hours after you file electronically or 4 weeks after you mail your paper return.
You can also check your refund status by calling the IRS Refund Hotline (800-829-1954). However, you need to wait at least 21 days if you e-file or 6 weeks if you mail a paper return before you should do this. And when you call, make sure that you’re prepared to provide your filing status, tax refund amount, and social security number.
For more information, visit the official IRS website, or talk with a tax professional.
How is the fund received?
Once the tax authorities have processed your tax return and approved your refund, they’ll prepare to send your money to your bank or directly to your address if you requested a paper check. Just keep in mind that if you chose the direct deposit option, it may take 1-5 days before the fund will be available for you to access. If you elected paper check, it may take several days or weeks before your check will arrive in your mail.
For many people, filing an income tax return and claiming tax refund can be very confusing and complicated. If you find this process too daunting, hire a professional tax preparer to help you in the process. A tax professional can help you understand everything that involves in filing and receiving tax refund as well as the rules associated with it.