Want to pay less in taxes — without going to jail? Read on to learn legit tax-saving strategies, like opening an IRA or taking advantage of tax credits.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
If you get paperless mortgage statements or have autopay set up on your home loan, or even if you get statements in the mail, it might be easy to miss important information. By paying close attention to exactly what’s included in your mortgage statements, youâll avoid unpleasant surprises. What Is a Mortgage Statement? Maybe you […]
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What does filing as head of household mean? Weâre here to give you the details.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
Youâve probably heard of health savings accounts, or HSAs. You can use these accounts to pay medical expenses if you have a specific type of health plan with high out-of-pocket costs. But with sweet tax advantages, HSAs can also be a smart way to save for future medical expenses in retirement. Think of it like [â¦]
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
If you’re expecting a federal tax refund this year, you could get your money back in as little as three weeks. Historically, the IRS has issued over 90% of refunds due in less than 21 days. But this year could be different. Because of COVID-related disruptions, the IRS entered this tax filing season with millions of unprocessed tax returns from previous years. That’s going to slow them down and potentially delay your refund. Fortunately, there are a few things you can do to speed up the process and increase the odds of getting your tax refund quickly.
The first trick is to file your return as early as you can. The sooner you file your tax return, the sooner you’ll get any tax refund due. That’s because your return will be closer to the front of the line, rather than towards the back.
If you want to speed up the refund process even further, e-file your tax return. Paper returns slow things down considerably. There are a number of ways to file electronically. Of course, you can find a professional tax preparer to file an electronic return for you (most expensive route). Seniors, people earning $58,000 or less, disabled people, and taxpayers with limited English-language skills may also qualify for free tax assistance and e-filing through the IRS’s Tax Counseling for the Elderly and Volunteer Income Tax Assistance programs. There are also several e-filing options for the “do it yourself” crowd, such as using a commercial tax software product (e.g., TurboTax) or forms/software on the IRS website. If your 2021 adjusted gross income is $73,000 or less, you can even file your federal return for free!
Finally, make sure you select the direct deposit payment method for your refund. Just like paper returns, paper checks take much longer to process. It’s also the fastest and most convenient payment option (no trip to the bank needed). Plus, there’s always the chance that a paper check could get stolen or lost in the mail.
Even if you file early, file electronically, and request direct deposit, it still takes more time for the IRS to process some tax returns. If that happens, your refund could be delayed. Process delays should be expected if your return:
The IRS will contact you by mail if they need more information to process your return.
Also, by law, refunds for returns claiming the earned income tax credit or the additional child tax credit must be delayed. They can’t be issued before mid-February. This applies to the entire refund, not just the portion associated with the credits. However, for 2022, the IRS said these refunds should start being paid by March 1 if direct deposit is chosen and there are no other issues with the tax return (some people may have received refunds a few days earlier).
If you’re a non-resident alien filing Form 1040-NR who is requesting a refund of tax withheld from U.S. source income, you should allow up to 6 months from the original due date of the 1040-NR return or the date you filed the form, whichever is later, to receive any refund due.
The IRS has a handy online tool that lets you track the status of your tax refund. It’s called the “Where’s My Refund” portal, and it will tell you if the IRS is processing your return, getting ready to send your refund, or has already sent you your money. The tool is updated daily.
The portal is located on the IRS website. You’ll need your Social Security number (or individual taxpayer identification number), the filing status used on your 2021 tax return, and the exact amount of your expected refund to access it.
If you’ve already filed your 2021 tax return and you’re getting a tax refund, , now you just have to wait around for your payment to arrive. Unfortunately, though, the wait might be a little longer than usual this year â especially if you filed a paper return â Â because the IRS already has a backlog of unprocessed returns from previous years that it has to work through. If you really need the money, any delay at all can be extremely frustrating. Fortunately, the IRS has a tool that can help reduce the anxiety that comes with waiting â it’s called the “Where’s My Refund” portal.
[As of February 25, nearly 30 million tax refunds worth more than $103 billion have been issued in 2022. The average refund so far this year is $3,473, which is a 15% increase over the average at the same point last year.]
The “Where’s My Refund” tool will show the status of your tax refund within 24 hours after the IRS receives your e-filed return or four weeks after a paper return is mailed. In most case, it will tell you that your tax refund has either been:
In some cases, if the IRS is still reviewing your return, the tool may display instructions or an explanation of what the IRS is doing. Once your refund is processed and approved, the tool will give you an estimated date when you’ll get your payment.
If your refund is being deposited into your bank account, wait at least five days after the IRS sends the payment before contacting your bank to check on it. Some banks will credit funds more quickly than others. If you’re getting a paper check, it could take a few weeks before you receive it in the mail.
The tool is only updated once per day â usually at night â so there’s no need to check your status more often.
(Note: You can also download and use the IRS2Go app to check your tax refund status on a mobile device.)
To access the “Where’s My Refund” tool, you need to enter your Social Security number (or individual taxpayer identification number), the filing status used on your 2021 tax return, and the exact whole dollar refund amount shown on your 2021 return.
If you filed a joint return, you can use either spouse’s Social Security number. The filing status options are:
When entering the refund amount, make sure you’re looking at the correct line on your tax return to find it. If you filed Form 1040, Form 1040-SR, or Form 1040-NR, use the amount on Line 35a. If you filed Form 1040-PR or Form 1040SS, the refund amount is found on Line 14a.
If you file your return before July 1, your tax refund information will be available in the “Where’s My Refund” tool until the second or third week in December. If you file your return after July 1 or your refund check is returned to the IRS as undeliverable by the U.S. Postal Service, your refund information will be available through next year until you file a tax return for a more current tax year.
All or part of your refund can be diverted (“offset”) to pay off past-due federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or other federal nontax debts (e.g., student loans). To find out if this happened to your tax refund, or if you have questions about an offset, contact the agency to which you owe the debt.
The IRS can also adjust your tax refund amount if it makes changes to your tax return. The IRS will send you a notice in the mail explaining the changes. The “Where’s My Refund” tool will also note the reasons for a refund offset when it’s related to a change made by the IRS to your tax return.
If the tax refund you receive is not from your tax account, don’t cash the refund check or spend the direct deposit refund. Instead, you should send the refund back to the IRS according to the procedures on the IRS’s website.
Refund information for an amended federal income tax return on Form 1040X isn’t available on the “Where’s My Refund” portal. But there is a resource you can use to track the status of an amended return for the current tax year and up to three prior tax years. Not surprisingly, it’s called the “Where’s My Amended Return” portal.
To access the tool, you’ll need to provide your Social Security number, date of birth, and zip code. It can take up to 3 weeks after you mailed it for an amended return to show up in the portal. Processing an amended return normally can take up to 16 weeks, but lately it’s been taking the IRS more than 20 weeks because of COVID-related processing delays. The “Where’s My Amended Return” tool will let you know if your amended return is received, adjusted, or completed.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
Buying a home can be one of the biggest and most exhilarating purchases of your lifetime. Especially in a time when young people are having more difficulty locating affordable housing, finding yourself in a situation where you think you have finally saved up enough money for a down payment on your first home can be […]
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