Tax Refund Myths

Several Myths Regarding Refunds Are Currently Making The Rounds On Social Media

Now that the April tax-filing deadline has come and gone, you may be anxiously awaiting a refund. Getting an update on your refund is simple, and most of the information on how to get your refund faster is bogus.

Here are five of these common myths:

Myth 1: Getting A Refund This Year Means There’s No Need To Adjust Withholding For 2019

If you experienced an unexpected tax outcome this year, make the necessary changes now to prepare for next year. One way to do this may be to adjust your tax withholding with your employer.

The IRS encourages taxpayers to do a Paycheck Checkup using the IRS Withholding Calculator to determine whether their employer is withholding the right amount. This is especially important if you got an unexpected result from filing your tax return this year. This could have happened because your employer withheld too much or too little tax from your paycheck in 2018.

Myth 2: Calling The IRS Or A Tax Professional Will Provide A Better Refund Date

Many people mistakenly think that talking to the IRS or calling their tax professional is the best way to find out when they will get their refund. In reality, the best way to check the status of a refund is online through the “Where’s My Refund?” tool at IRS.gov or with the IRS2Go mobile app. Taxpayers without Internet access can call the automated refund hotline at 800-829-1954. “Where’s My Refund?” has the same information available to IRS telephone assistors, so there is no need to call unless “Where’s My Refund?” says to do so.

Myth 3: Ordering A Tax Transcript Is A “Secret Way” To Get A Refund Date

Ordering a tax transcript will not result in a refund date. Furthermore, there is no “secret way” to acquire a refund date. “Where’s My Refund?” tells you when your tax return has been received and if the IRS has approved or sent the refund.

Myth 4: “Where’s My Refund?” Must Be Wrong Because There’s No Deposit Date Yet

Updates to “Where’s My Refund?” ‎on both IRS.gov and the IRS2Go mobile app are made once each day. These updates are usually made overnight. Even though the IRS issues most refunds in less than 21 days, it’s possible a refund may take longer. This means that in some cases, a taxpayer who filed later may receive their refund sooner than someone who filed earlier in the season. The IRS will contact you by mail when it needs more information to process your tax return. You should also remember to consider the time it takes for the banks to post the refund to your account. If you are waiting for your refund in the mail, you should plan for the time it takes a check to arrive.

Myth 5: “Where’s My Refund?” Must Be Wrong Because A Refund Amount Is Less Than Expected

There are several factors that could cause a tax refund to be larger or smaller than expected. Situations that could decrease a refund include:

  • Math errors or mistakes were made on the return
  • You owe federal taxes for a prior year
  • You owe state taxes, child support, student loans, or other delinquent federal nontax obligations
  • The IRS holds a portion of the refund while it reviews an item claimed on the return

The IRS will mail you a letter of explanation if these adjustments are made. You may also receive a letter from the Department of Treasury’s Bureau of the Fiscal Service if your refund was reduced to offset certain financial obligations.

Bayshore CPA’s, P.A. are your local Certified Public Accountants

and Tax Resolution Specialists conveniently located

in Mooresville, North Carolina

 

Image by mohamed Hassan from Pixabay