Where's My Refund?

From the desk of the IRS:

Are you expecting a refund from the IRS this year? Here are the top ten things you should know about your refund.

1. Refund Options You have two options for receiving your individual federal income tax refund: a paper check or a direct deposit.
2. Separate Accounts You may use Form 8888, Direct Deposit of Refund to More Than One Account, to request that your refund be allocated by direct deposit among up to three separate accounts, such as checking or savings or retirement accounts.
3. Paper Return Processing Time If you file a complete and accurate paper tax return, your refund will usually be issued within six weeks from the received date.
4. Returns Filed Electronically If you filed electronically, your refund will normally be issued within three weeks after the acknowledgment date.
5. Check the Status Online The fastest and easiest way to find out about your current year refund is to go to the IRS.gov Web site and click on the “Where’s My Refund?” link available from the home page. You will need your Social Security number, filing status and the exact whole dollar amount of your refund to check the status online.
6. Check the Status By Phone Call the IRS Refund Hotline at 800-829–1954. When you call, you will need to provide your Social Security number, your filing status, and the exact whole dollar amount of the refund shown on your return.
7. Delayed Refund There are several reasons for delayed refunds. For things that may delay the processing of your return, refer to Tax Topic 303 on IRS.gov, which includes a Checklist of Common Errors When Preparing Your Tax Return.
8. Larger than Expected Refund If you receive a refund to which you are not entitled, or one for an amount that is more than you expected, do not cash the check until you receive a notice explaining the difference. Follow the instructions on the notice.
9. Smaller than Expected Refund If you receive a refund for a smaller amount than you expected, you may cash the check, and, if it is determined that you should have received more, you will later receive a check for the difference. If you did not receive a notice and you have questions about the amount of your refund, wait two weeks after receiving the refund, then call 800–829–1040.
10. Missing Refund The IRS will assist you in obtaining a replacement check for a refund check that is verified as lost or stolen. If the IRS was unable to deliver your refund because you moved, you can change your address online. Once your address has been changed, the IRS can reissue the undelivered check. For more information, visit IRS.gov or call 800-829-1040.

Getting A Large Tax Refund? Maybe You Should Have Less Tax Withheld.

Everyone always brags about how much money they get back at the end of the year. But did you know the best way to manage your money is to break even? Think about it... When you get a refund at the end of the year, it's because you gave the IRS too much of your money. And, by doing so, you've basically given them an interest free loan!

So, how do you know exactly how much to have withheld? Well, luckily the IRS.gov website has a handy dandy tax calculator for you.

Use it to compute your withholding for the coming year and stop loaning the government your hard-earned cash!

Further Reading

Tax Refunds

Will I Get a Rebate if I Owe Money?

In a simple word: no. I believe the rebate is acting like a refund and when a refund is due, it's usually applied to the any remaining balances first. However, TaxGirl is less sure of this statement.

So, the bottom line is the jury's still out. But I'd urge, as TaxGirl says, for you to ask your tax preparer.

Congress Approves Tax Rebate

So, the rebate has been approved by Congress. Yay. What the heck does this mean? It means the Senate and the House have come to a compromise (see here for their individual proposals) and now Mr. Bush needs to sign the thing. Then the money starts flowing. But how much money?

$300-$600 for Individuals
Up To $1,200 for Joint returns
$300 per Child

(Don't Mess With Taxes has a good post with a fact sheet breaking down possible refund scenarios)

You are eligible for the rebate if you had $1 or more in tax liability or $3K or more in Adjusted Gross Income for 2007.

This plan makes some winners and some losers. But the most notable specific that should be highlighted is that this is a pre-bate, meaning a pre-rebate for the 2008 tax year. So, if you don't get your full refund this year, you may be able to claim it in 2008. However, you may also have a lesser refund in 2008 for getting the rebate for 2007 (thus the "pre" in the name).

Additionally, there's been some argument over when the checks will come out. And there is some doubt as to the effectiveness of the rebate. Will the money be placed in the hands of those who need it most for spending? I guess we'll have to wait and see.

Free Money in '08?

Well, nothings really free. There's no free lunch remember? But although it comes from somewhere, the important point is that it comes to your wallet.

The specifics

In order to stimulate a waning economy, the government is proposing a tax rebate. The rebate is being issued in hopes that people will spend the money and breathe some life into the economy. Whether this happens or not or whether an actual plan is decided on remains to be seen. But let's get to what the rebate means to you.


Senate Version

$500 per Individual
$1,000 per Joint return
$300 per Child
And there is no limit on income


Congress Version

$600 per Individual
$1,200 per Joint return
$300 per Child
Limitations: Filers must have more than $300 in Adjusted Gross Income and there will be a 5 cent deduction in the rebate per $1 over an AGI of 75K for individuals and $150K for joint filers.


**And if you have tax debt, don't get excited. That rebate money goes to the government!**


But It's January!

If you're worried the Senate and House won't get their act together until it's too late, don't worry. In 2001 when this was done Bush signed the dotted line and 4 months later the checks was given out--this would mean if the bill is signed during February, the money would come out in June. Not that bad...



Additional Resources...

Is a Tax Rebate Coming Your Way??

Bush Calls For 'Direct and Rapid Stimulus'

Tax Rebates: Where's Your Check?

Just How Much Is Being Given Back?

INTERNAL REVENUE SERVICE
2007 FILING SEASON STATISTICS
**** Individual Tax Returns cumulative through the weeks ending 9/29/06 and 9/28/07


Total Refunds:

Number
99,173,000 (2006)--------------------103,470,000 (2007)--------------- +4.3%

Amount
$218.731 Billion (2006)----------------$233.695 Billion (2007)------------ +6.8%

Average Refund
$2,206 (2006)------------------------$2,259 (2007)---------------------- +2.4%

During this past tax season, 135,341,000 tax returns were received by the Internal Revenue Service. Of these, 135,033,000 were actually processed. This number is up 2.9% from the previous year. Keep in mind that these numbers, as well as the ones above, do not include business tax returns. Also please remember that if you are due a refund, you only have three years to collect that money from the IRS. There is no reason to sit around and put off receiving money. That's crazy talk. If you don't like money for some reason, please leave me a comment with your contact number so I may call you and give you my address. I will allow you to send me all the money you don't want from this point forward. It will be my gift to you.

Cheers!
-Taxus


As always, you can find an array of articles by perusing this site or by checking out my coworkers' individual sites:

IRS MIND
Tax Negotiation
Tax-Thoughts
Little Miss Tax Lass
Tax Settlement

And if you need the assistance of a tax resolution firm, seek out the best: Effectur, Inc.

3 Years and 1 Day Too Late

At times, a taxpayer should have received more money at the end of the year than they did. You might have missed out on a refund if you made an error on your tax return. If you discover an error after your return has been mailed, you have a chance to submit an Amended U.S. Individual Tax Return. You would do this if you found that you reported your filing status, deductions or credits, or total income incorrectly. If you find this to be the case, use IRS form 1040X and attach a copy of the original return.

Now here’s the catch: generally, to claim a refund, Form 1040X must be filed within 3 years from the date you filed your original return or the actual date of filing. That’s right ladies and gentlemen…If the IRS owes you money, you only have 3 years to collect it from them. On the other hand, if you owe the IRS, they have 10 years to collect that money from you. I am sure you aren’t surprised. I mean, we are talking about the IRS here.

Cheers!
- Taxus