Refund Feed

This tax filing season is a troubling and troublesome one for millions of filers. They're dealing with major tax law changes which many are finding have adversely affected their expected tax refund amounts. Things are slowly getting back to normal at the Internal Revenue Service following the recent federal government shutdown. Some quick indicators that more IRS workers are back include my email box getting more messages from the agency, more updates on IRS.gov and reports on how well (or not) the 2019 filing season is going. About that last matter, IRS has resumed its annual weekly postings of tax-filing... Read more →


Updated Feb. 20, 2019 We're well into the 2019 tax filing season and things have been a little slow, thanks in large part to the longest government shutdown in U.S. history that hampered Internal Revenue Service preparations for the millions of tax returns it receives each year. Still, millions of taxpayers already have filed their returns. After the second week of the filing season, which ended on Feb. 8, the IRS had received almost 29 million returns. Most, if not all, of those filers were expecting refunds, although some were unpleasantly surprised. At least, though, they have their taxes out... Read more →


National EITC Awareness Day was Jan. 25. Did you miss it? Probably. It's not a federal holiday, but rather the day each year when the Internal Revenue Service celebrates the tax benefits the Earned Income Tax Credit, the full name of the aforementioned acronym. It's also a time that the IRS tries to get the word out about the EITC. This year, though, the IRS' message about this tax break for lower-income workers got drowned out. EITC Day 2019 fell on the day that the longest government shutdown in U.S. history came to an end. So most attention, tax and... Read more →


IRS headquarters image by Kari Bluff via Flickr Creative Commons The Internal Revenue Service has some good news for taxpayers and sort of good news for its staff. The agency is calling back more than half — specifically, 46,052 or almost 55 percent of its more than 80, 265 — employees. These are workers who, according to the updated government shutdown contingency plan issued Jan. 15 by the Treasury Department, are necessary for the IRS "to continue return processing activities to the extent necessary to protect Government property, which includes tax revenue, and maintain the integrity of the federal tax... Read more →


Even in the best of tax times, folks are impatient when it comes to getting their refunds. They want them yesterday, looking to collect on the forces savings account they created when they intentionally had too much put into their paycheck withholding. Then comes 2019, where every day it's looking more like parts of the federal government, including the Internal Revenue Service, will be in shutdown mode when the annual tax return filing season starts on Jan. 28. While the Treasury Department and IRS say they will do what it takes to make this year as normal as possible, many... Read more →


Longest U.S. federal government shutdown in history be damned! That's apparently the Internal Revenue Service's motto this year. It announced last week that it will start working on our 2018 tax returns — and issue any related refunds — this filing season, which is set to start on Monday, Jan. 28, even if it's technically still operating in modified shutdown mode. The IRS underscored that commitment on Friday, Jan. 11, when it announced that taxpayers who qualify to use Free File can now access the online no-cost tax preparation and e-filing option. Yep. Free File 2019 is now open for... Read more →


Today should be payday for hundreds of thousands of federal government workers. The partial government shutdown, however, means they're not getting their money. And even though the White House, Treasury and the Internal Revenue Service say that the 2019 filing season will open at the end of January as it has in years past and that refunds will be issued, there's no guarantee that things will go smoothly. We are, after all, talking about Uncle Sam's operations. Can IRS meet refund challenge? The IRS says it will recall "a significant portion" of its currently furloughed workforce to open tax season... Read more →


Tax filing time! (Photo by MoneyBlogNewz via Flickr) The Internal Revenue Service will begin processing 2018 tax returns on Jan. 28. That's essentially the same the time, the last Monday of the month, that filing season started last year. Free File, the partnership between the IRS and the tax software industry, has in the past opened at least a few days earlier (it was available on Jan. 12 last year), but there's no word on that 2019 no-cost online tax prep and filing option yet. But one thing the IRS did make clear is its commitment to the Jan. 28... Read more →


Good news today for folks who are expecting a tax refund when they file their 2018 returns this year. You'll get your money, even if the partial government shutdown drags out into the 2019 tax filing season. That's the word from the Office of Management and Budget (OMB), according to Hallie Jackson, chief White House correspondent for MSNBC. Jackson made that announcement during Ali Velshi's show this afternoon after leaving an hour-plus White House press briefing, led by Vice President Mike Pence, on the shutdown. "The head of Office of Management and Budget, Russ Vought, is telling us that there... Read more →


I'm getting a lot of feedback about the partial government shutdown, specifically about the pay status of Internal Revenue Service (and other federal) personnel who will report to work next week and those who are furloughed. More than 420,000 federal employees who will work will do so without pay, according to a report from the Democrats on the Senate Appropriations Committee. The additional 380,000 furloughed workers head home to wait out the closure, again without pay. Those 800,000 or so federal employees earn this week's By the Numbers honors. Many folks objected to my description in recent government shutdown blog... Read more →


We're now into the third shutdown of federal offices this year. The other two were brief closures back in January and February. Will this latest federal government shutdown, which began at midnight today (Saturday, Dec. 22) be similarly short-lived? Maybe, but closure #3 of 2018 already is the longest of the year, with the January shutdown lasting three days and the one in early February technically shutting federal doors for just a few hours. Nothing is expected to happen until after Christmas. Some are predicting the impasse will continue into the new year. And Donald J. Trump has vowed that... Read more →


Will the Internal Revenue Service have to operate short-handed during the coming tax-filing season? Maybe. It's looking more like a government shutdown will happen after the White House rejection of the Senate-approved continuing resolution to keep all of Uncle Same's offices operating. (IRS Washington, D.C., headquarters photo by David Boeke via Flickr CC) The Internal Revenue Service is among the federal agencies awaiting full fiscal year (FY) funding. When I woke up this morning, it looked like Uncle Sam's tax collector would get his money. A short-term funding deal was on its way to passage, having cleared the Senate last... Read more →


This post was updated Saturday, Dec. 22, as the federal government was partially closed when Donald J. Trump rejected any funding measure that doesn't have $5 billion for a U.S.-Mexico border wall. Photo by Alan Cleaver via Flickr CC We're now into the third government shutdown of 2018. Even though only some federal offices are affected, the Internal Revenue Service is among them. And if the closure is a long one, it could shake the Internal Revenue Service's initial confidence that the coming tax season won't be affected. A couple of weeks ago when it looked like Congress and the... Read more →


We're on the downside of 2018 and that has some folks in the tax world, and on Capitol Hill, concerned. They're worried that unless folks act soon, they're going to get an unwelcome surprise next federal tax filing season. When they fill out their new Form 1040s, they'll discover they owe. The reason is the new Tax Cuts and Jobs Act (TCJA). OK, technically it's because a lot of folks haven't adjusted their payroll withholding to account for the new lower income tax rates and other changes, like no more exemptions and revised of eliminated itemized expenses. It's not for... Read more →


U.S. Navy photo by Mass Communication Specialist 1st Class Patrick Gordon Some veterans who received disability severance payments after Jan. 17, 1991, and included that money as income when they filed their tax returns now are due refunds. The former military members have known since February that they were due money. Now the process of getting it has finally begun. But Uncle Sam isn't automatically sending former troops any cash due from the erroneously taxed payments. The veterans need to file an amended tax return using Form 1040X to claim a disability severance payment-related credit or tax refund. Why now?... Read more →


Taxes are complicated. Most filers, however, escape some of the hassle by claiming the standard deduction instead of itemizing expenses. Over the years, around 70 percent of taxpayers annually have taken the standard deduction route. That number is likely to increase next year, when even more folks filing 2018 returns will claim the standard deduction amounts because, under the Tax Cuts and Jobs Act (TCJA), they have almost doubled. A few of us, though, will stick with Schedule A and our itemized expenses. And we, says the Internal Revenue Service, need to look at our payroll withholding now because of... Read more →


Click image to watch the Mos Eisley cantina scene, in which these musicians provide the catchy background tune, from the 1977 Star Wars movie that launched the sci-fi film franchise. Merry May 4th. Yes, this is another goofy, made-up holiday, but one that's dear to sci-fi fans (and punsters), particularly those devoted to Star Wars. The film franchise's iconic "May the force be with you" greeting is celebrated each year on the similar sounding "May the Fourth be with you." As a long-time sci-fi fan and a college student who waited in a long line to see the 1977 debut... Read more →


Through April 13, the Internal Revenue Service had received 118.6 million tax returns. It had issued more than 86 million refunds totaling almost $243.6 billion. The refund numbers are fractionally smaller than in 2017, but they are still big enough to mean the average amount of money that Uncle Sam has sent so far this year to taxpayers is $2,831. That average check or direct deposit amount actually is slightly larger than last year's amount. GOBankingRates recently asked Americans how they planned to spend their tax windfalls. The results were encouraging for money folks who preach fiscal responsibility. Forty-three percent... Read more →


Most U.S. taxpayers get refunds. But the time it takes to get that over-withheld money seems to get longer every filing season, at least according to the emails I've received and comments on my refund-related blog posts. Part of the reason is the annual mandated hold until mid-February of refunds associated with returns that included Earned Income Tax Credit (EITC) or Additional Child Tax Credit claims. Realistically, that money doesn't show up in many affected filers' hands until the end of February. Then earlier this year, Congress decided to renew some tax breaks after the filing season had already been... Read more →


Internal Revenue Service filing data complete through March 16 shows that it has issued almost $183 million in tax refunds to around 62 million taxpayers. Many of those folks now getting refunds planned on the tax-back money. They used paycheck over-withholding as a forced savings account. These are the types of taxpayers the IRS is hoping to reach as part of Paycheck Checkup Week, which kicked off on Monday, March 26. Over the next few days, the IRS is making a special effort to get people to take another look at their payroll withholding. Such reexamination is especially important now... Read more →