Tax Refund

Each year many Americans look forward to receiving their income tax refund. This refund is a result of an overpayment of taxes during the previous calendar year. These refunds can range from very small amounts into many thousands of dollars. Some taxpayers knowingly choose to have extra money withheld throughout the year to guarantee a large refund. Others may choose to have the minimum withheld from their paychecks which results in a smaller refund. Tax refunds are in no way guaranteed and, without carefully planning, it as likely to end up owing taxes at the end of the year as it is to receive a refund.

Tax Refund Estimator

One way to anticipate the amount of your tax refund is to use a tax refund estimator. There are many online calculators and estimating tools available for you to use. To receive the most accurate results possible, be as precise as you can be when entering your income information. Most of what you need to gain an estimate your refund (or find out how much you owe), can be found on your final pay stub of the year. Enter this information for every job you have. Once you know the amount of taxes you’ve over or underpaid for the year, you can plan for the future accordingly.

Tax Refund Status

After you’ve filed your taxes for the year, it can be difficult to wait to receive your tax refund – especially if you are anticipating a sizable check or have pressing needs for the money. How you file your taxes (with a tax preparation service, tax software or on paper) can determine how quickly you receive your refund. By taking advantage of tools like e-file, you can speed up your refund by days or even weeks. Another way to speed up your refund is to use direct deposit. ou can have all of the money deposited in one account, or spread among several. To check on the status of your refund, you can reach the IRS Refund Hotline at 1-800-829-1954 or visit the IRS website. Be sure to have your Social Security Number, filing status (joint, single, etc) and the exact refund amount show on your return.

Instant Tax Refund

The IRS needs time to process your refund and deliver it to you. If you cannot afford to or do not want to wait, you can take advantage of so-called instant tax refunds. Instant refunds are actually refund anticipation loans that are usually offered by loan preparation companies. Such companies will forward you the amount of your refund minus fees and charges. These costs can be extremely high and are deducted from the amount of your refund – in some cases decreasing it dramatically.