Things to Keep in Mind When Filing for a Tax Refund
Life, death and taxes: the three guarantees in life. People have been paying taxes since 3,000 BC, according to a Northeastern University article. They’ll surely be paying them for thousands of years into the future.
But taxes aren’t all bad. Sometimes instead of owing money to the government at the end of the year, you get money back in the form of a tax refund. You might be asking yourself, “What do I need to know to get a tax refund check?”
This article will cover some important things to know about tax refunds.
Not everyone gets a refund
Depending on several factors, you may not get a refund after filing your taxes. It’s possible that you won’t receive any money back, or you may even owe money to the IRS. When you fill out your tax forms for your employer, you can claim as few deductions as possible to increase your chance at receiving a refund.
Refunds are paid out at different times
If you know you’re entitled to a tax refund, it may be frustrating to see that other people have received their refund while you haven’t yet. This could be due to several factors but could be related to the fact that the IRS is reviewing your return as a security check. Identity theft and tax refund fraud are real problems that the IRS has to deal with, and for them to adequately monitor the millions of tax returns they receive each year, it takes time.
How you file matters
If you have a spouse, you’ll have to weigh the costs and benefits of filing separately or jointly. Depending on how the year went for both of you financially, you may receive a larger refund if you file separately or jointly. If you’re single, you’ll want to investigate filing as the head of a household. There are certain rules regarding head of household (usually, you must have paid over half the cost of maintaining a household while supporting a dependent), and you may receive a larger standard deduction if you qualify.
Know your tax credits
At some point you may have wondered, “What do I need to know to get a tax refund check?” It helps to research and know about tax credits that you may be entitled to. The three main tax credits are the Earned Income Tax Credit, the Child and Dependent Care Credit and the Child Tax Credit. You may also be eligible for special tax credits that cover educational expenses. Knowing about these credits could boost your chances for a refund.
One of the most important things to know about tax refunds is the deductions that you’re eligible for. You may be able to write off certain business expenses, which could lower your taxable income. You’ll need to decide whether to itemize your deductions or not, but either way, you should save your business receipts just in case. This could pave the way for you to receive a significant refund.
Call about your taxes today
Understanding more about the taxation process can reduce the amount you owe and even lead to you qualifying for a refund. For more information on your taxes call us at Kedean’s Generation, where we’ve been offering accounting, tax planning and registration services for 30 years.
Categorised in: Tax Preparation