Refund Feed

I know you're tired of taxes continuing into July. I know you just want to be done with your filings and the Internal Revenue Service and move on to other things. But I also know that most of you, especially if you're facing coronavirus-related financial difficulties, don't want to just hand over money, possibly hundreds of dollars to Uncle Sam. You'll do just that if you were due a tax refund on your 2016 taxes and didn't file for it during the 2017 tax season. That's the situation for an estimated 1.4 million individual taxpayers. If they don't claim those... Read more →


Erin M. Collins took over as National Taxpayer Advocate on March 30, just as the United States was coming to grips with the coronavirus, so it's no surprise that the pandemic and its effects on taxes are part of her first official report to Congress. "Starting in the midst of a pandemic and witnessing IRS offices closing one by one was not the way I envisioned my role when I accepted the position," wrote Collins in the report's preface. But, added Collins, there's been a silver lining. In conference calls with her leadership team, Taxpayer Advocate Service (TAS) employees and... Read more →


If you're still waiting for your federal tax refund, the Internal Revenue Service has a bit of good news for you. When you finally get the amount that you overpaid on your 2019 taxes, Uncle Sam will tack on a bit on interest to make up for your wait. Actually, it's more than a bit if you compare it to current interest rates for most accounts. The IRS this week announced this week that it will be paying a 5 percent annual interest rate on refunds issued between April 15 and June 30. Since the IRS adjusts its interest earning... Read more →


Photo by fauxels from Pexels Working from home is a major lifestyle change wrought by COVID-19 and efforts to stem its spread. That's produced good, bad, ugly and tax results. The good is no commuting. The bad is family members who think since you're home, you still can do everything else, too. The ugly is the attire most of us wear as we work from home, except for the times we put on a clean shirt for Zoom meetings. Then there's the matter of taxes. Workers' locations, new tax nexus? Since shutdown orders went into place in mid-March, businesses have... Read more →


All tax eyes nowadays are on coronavirus relief measures, both the Coronavirus Aid, Relief and Economic Security (CARES) Act that became law in late March and The Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act that passed that passed House on Friday (May 15), but isn't expected move, at least not quickly, through the Senate. That's understandable. Businesses are still struggling, despite some partial re-openings across the country, and most people who got laid off are still out of jobs. They are growing more desperate each day for the financial help that CARES offers and the HEROES promises. But... Read more →


More than 80 million stimulus checks went out last week, mostly to people who filed federal 2018 or 2019 returns and had the Internal Revenue Service directly deposit those tax years' refunds. Millions more have been anxiously checking the IRS' Get My Payment online tracking tool (guilty!) and/or their bank accounts (guilty again!) to find out just how far along their (my) COVID-19 relief payment is in the distribution system. In many cases, people who didn't get refunds, but are eligible for the coronavirus stimulus money are trying to speed up the delivery process by using the online tool to... Read more →


When your job doesn't pay much, the Earned Income Tax Credit (EITC) can be a big help. This tax break for lower- and middle-income workers has been a part of the tax code since 1975's Tax Reduction Act. It was a logical extension of the 1960s-era War on Poverty, creating a way for lower-paid workers to offset the Social Security taxes that take a relatively bigger bite out of their smaller paychecks. Since it's a tax credit, the EITC provides a dollar-for-dollar offset of any tax owed. And since it's a refundable tax credit, eligible recipients can get any EITC... Read more →


UPDATE, Friday, April 10, 2020: The Internal Revenue Service says it is working on "Get My Payment." This new online tool will allow eligible people a chance to give the agency their bank account information so they can receive their COVID-19 relief payments more quickly than waiting for a paper check to arrive via snail mail. The operational date for Get My Payment is the week of April 13. The Treasury Department is about to kick off the distribution process that will get some much-needed cash to millions of Americans who are struggling because of COVID-19's effects. The good news... Read more →


Photo by Vera Arsic via Pexels The biggest problem for most of us in coronavirus lockdown with our families, whether ordered by state or local officials or self-imposed, is figuring out how to not get on each other's last nerve. For some, however, the forced togetherness is deadly serious. Possibly just deadly. Domestic violence since COVID-19 appeared has spiked as victims find themselves forced to stay home with abusers, according to those who work to protect people, still primarily women, from abusive partners and spouses. It's happening globally, across the United States and here in Texas. "During a time of... Read more →


Just can't get motivated to do your taxes? You are not alone. It's April, but the pandemic has shifted the tax focus this year from filing, which has a new July 15 deadline, to the coronavirus economic relief payments. Still, if you're due a refund — and yes, some folks who get tax money back still dally when it comes to sending in their returns — you might want to go ahead and get to work on that 1040. The main reason to file is that you'll get your 2019 tax year refund. That's not going to happen until the... Read more →


Princess Bride impatience via Giphy.com Refunds are the focus (and goal) of millions of Americans every tax-filing season. They intentionally withhold too much money during the year, creating a forced savings account from which they can withdraw their refund in the next year. Then they file early to get their tax cash back as soon as they can. But every year, they also fall for some refund myths, misconceptions and just plain wrong information they think will help them get their money sooner. Some of these are relatively benign beliefs, at worst slowing down refunds. Others can be costly. Here... Read more →


Even with increased e-filing, taxpayers still don't seem to be in a big hurry to send their 1040s to the IRS. At the start of every filing season, there's a lot of talk and media coverage (guilty!) about how folks are champing at the bit to get their returns in to the Internal Revenue Service. And for the last five years, taxpayers have said "meh," at least as far as filing as soon as they can. Comparing IRS filing data for early February from 2016 through 2020, we see: Filing Season Week Ending # Returns Filed % Change from Prior... Read more →


What would you do with an extra $2,504? That's the average amount received by taxpayers who claimed the Earned Income Tax Credit (EITC) in 2019. Overall, the Internal Revenue Service says that across the country last year, 25 million taxpayers received more than $61 billion from this tax break for lower-and middle-income workers. Every tax year, however, folks who qualify for the Earned Income Tax Credit don't claim it. Many don't know about the tax break. Others don't realize that changes in their marital, parental or financial status means they now qualify. That's why for more than a decade, the... Read more →


The first day of tax filing season essentially is the tax version of Black Friday, with taxpayers — mostly those expecting refunds — rushing the Internal Revenue Service's digital doors. (Screenshot of eager Black Friday shoppers from Jerry Bailey's YouTube video) Today is the first day of the 2020 tax filing season and already folks are wanting to know when they're get their refunds. That question is totally understandable. Despite last year's refund confusion caused by the Tax Cuts and Jobs Act (TCJA) changes, the average federal income tax refund was in 2019 was $2,869 based on returns processed through... Read more →


The second filing season under the Tax Cuts and Jobs Act (TCJA) is about to start. This one will be easier, right? Right? Maybe. At least this year, we and the Internal Revenue Service aren't dealing with the longest federal government shutdown in history. Plus, folks got a good look with their filings last year at how the massive Republican tax reform law affects them, although some areas are still a bit fuzzy. And of course, everyone adjusted their payroll withholding so there won't be a replay of 2019's reduced/no-tax-refund drama. Yeah, I'm rolling my eyes at that statement, too.... Read more →


You just read my post on tax filing requirements (thanks!) and discovered you don't have to file a Form 1040 this year. So, as fictional television attorney (though not a tax specialist) Jimmy McGill might say, "'S'all good, man." Right? Not necessarily. Sometimes even if you don't have to file a federal tax return, it's to your benefit to do so. Here are 10 situations when you should send the Internal Revenue Service a return: You're due a refund. This often is the case if you had federal income tax withheld. The only way to get any of that prepaid... Read more →


Broad City image via Giphy.com Do you have to file a return? Sorry to be the bearer of bad news, but the answer usually is yes. Believe it or not, some people make it through tax-filing season without any hassle. That's because the Internal Revenue Service doesn't require them to file taxes. Unfortunately, most of us aren't that lucky. So just who has to file a tax return? Generally, if you are a U.S. citizen or resident you must consider three things when determining whether you have to file a tax return: your age, your filing status and your income.... Read more →


The 2020 filing season starts on Jan. 27 and millions of taxpayers already are ready to send their 1040s to the Internal Revenue Service on that day. Most of these folks are expecting refunds. But that's just one reason to file your taxes early. Here are six reasons to finish up your Form 1040 and get it to the IRS ASAP. 1. To get your refund sooner. Yes, a tax refund is always the top reason to file your taxes as early as you can. I could go on (and on and on) about how it's better to adjust your... Read more →


MoneyBlogNewz via Flickr CC It's official. The Internal Revenue Service will start accepting, and more importantly for folks expecting refunds, processing 2019 tax year individual returns on Monday, Jan. 27. Way to give me some breathing room (NOT!), IRS, after my post earlier today about the opening of business tax filing tomorrow, Jan. 7. OK, only kidding (sort of) about the back-to-back business and individual filing season blog items. It's always good news for all when the IRS announces filing season starting dates. Almost ready to go: The annual announcement of the individual tax return filing season means the tax... Read more →


December is, for the most part, a festive month. The holidays and all that accompanies them, from songs to movies to the joy of youngsters and young at heart, bring out the best in most of us. But things aren't quite so bright and jolly for everyone. Despite an economic recovery that's lifted people out of poverty in most areas of the country, poverty increased in at least one county in every state between 2016 and 2018. The poverty rate — defined as the percentage of people in households earning less than the current $25,750 threshold for a family of... Read more →