To many, adhering to IRS modus operandi is like another tax they have to shell out. Filling Return and Payment do not necessarily put full stop to the correspondence with IRS. In many circumstances (in 2004, 77% of returns filed), IRS owes to countless Americans. And to get back what excess have been paid, taxpayers have to creep across rigmarole once more, which is known as claiming Tax Refund.
When a taxpayer is deemed to be entitling of refund? If the tax liability he owes is not as much of what he has paid to IRS either in terms of Withholding or Estimated Tax or combination of both. Refund can also be claimed if tax credits, in this regard, amount to much than due.
Tips about Tax Refund:
1. Claim refund using Form 1040X. File separate form for each year or period of refund.
2. Fastest and easiest access to refund information can be easily done online.
3. Knowing refund status is much easier when the return is filed online and takes barely 3 days as compared to 3 to 4 weeks in case of paper return.
4. The online tool likely asks Social Security Number, Taxpayer Identification Number and Filling Status to get personalized information about tax refund.
5. Getting acknowledgement of filling return and date of direct deposit (mailing date in case of taxpayer asks for physical check) is very straightforward using online tool.
6. Correspond to IRS if there is any change in mailing address. Updating this can also be done online.
7. Early bird catches the worm. Don’t be too late to claim income tax refund. The timeline is tardiest of 3 years from the date of filling return or that of 2 years from payment.
8. Insist on Direct Deposit rather than physical check, as it is more convenient, safe, quick and least expensive to IRS as well.
9. Verify whether or not your bank will accept and let joint refund deposited in an individual account.
10. Trace refund status online if the amount is not deposited or check is not been received by stipulated time.
11. Getting all the information cited above is just few fingertips away for Apple and Android users with an application called IRS2Go, available at Apple App Store and Android Marketplace.
Though claiming refund, nowadays, is not that much intricate what it used to be earlier, one may find it difficult to understand some tax related jargons. Getting assistance from professional tax practitioners will make the entire process effortless to a great extent.
