The annual tax season of the IRS is usually that time of the year that most people dread. In most cases, this is based on the fear of owing taxes. To try and compensate for this possibility, a lot of individuals over-withhold money from their paychecks.
Underpaying on taxes is not good, but on the other hand, overpaying is not good either. A good method to avoid this whole scenario is to understand which common mistakes occur that usually lead to taxes owed to the IRS.
Causes of the great IRS tax bill debacle
The most glaringly obvious problem in this scenario is when too little is withheld from an individual’s paycheck. After the correct amount is determined, a minor adjustment on the Form W-4 can rectify this situation. Changes on a tax return can also be a big culprit in these matters. These also need to be considered for taxes and can include things such as job changes or where children are no longer claimed as dependents.
In instances where significant amounts of money are received as non-wage income, estimated quarterly payments need to be made. When these quarterly payments are not sufficient, the difference will need to be sorted out when federal income tax returns are filed. Additional income may also change the playing field. For example, something such as receiving unemployment benefits can lead to an increase in the tax bill.
A statistical analysis of the tax refund payment schedule
According to the IRS tax season filing statistics, the current average refund amount equates to $2,939. With this in mind, it is important to note that most of these refunds are issued within a period of 21 days. This is calculated based on when the tax return has been accepted.
A refund schedule distributed by the IRS can provide a little more clarity on this matter. This schedule is variable and based on certain factors.
Things such as the method of filing, date of filing, and the type of credit that was claimed all play a deciding factor here. A good example is if the person filed electronically and selected the direct deposit option for the refund, the payment is usually one to three weeks after acceptance, whereas submitting the return by mail and requesting a refund check by mail can set you back two months on the calendar.
Anticipating your influx of funds from the Internal Revenue Service
The estimated schedule currently available gives a generic allocation of when refund payments can be expected. An important variable to note here is that the tax return should have been submitted correctly, and no tax breaks would have been claimed:
- Acceptance date – 26 May
- Direct deposit date – 16 June
- Mailed check – 25 July
- Acceptance date – 9 June
- Direct deposit date – 30 June
- Mailed check – 8 August
- Acceptance date – 23 June
- Direct deposit date – 14 July
- Mailed check – 22 August
- Acceptance date – 7 July
- Direct deposit date – 28 July
- Mailed check – 5 September
- Acceptance date – 21 July
- Direct deposit date – 11 August
- Mailed check – 19 September
With the vast quantity of tax returns received as well as refunds issued, the IRS’s Where’s My Refund tool is a lifesaver. This handy tool can be used to track receipt of a return as well as to verify the status of a refund. This can be done as quickly as 24 hours after electronic filing. The system is permanently available and updated daily. Mobile accessibility is also possible.
The IRS ensures that all the online platforms and systems are regularly updated to provide the most relevant information to taxpayers. When conducting any form of query, it is crucial to remember to keep the correct information on hand. These include the Social Security Number or ITIN (Individual taxpayer ID Number) of the taxpayer, the filing system, and, where possible, the exact refund amount (if applicable). With all these systems in place, the IRS strives for efficiency and effectiveness.
