Are you expecting a refund from the IRS this year? Here are the top ten things you should know about your refund.
Refund Options
You have two options for receiving your individual federal income tax refund: a paper check or a direct deposit.
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.
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.
Returns Filed Electronically
If you filed electronically, your refund will normally be issued within three weeks after the acknowledgment date.
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.
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.
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.
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.
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.
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.
Where’s My Refund?
Form 3911, Taxpayer Statement Regarding Refund (PDF 62K)
Tax Topic 152 — Refunds
Frequently Asked Questions
Showing posts with label tax refunds; direct deposit; effectur. Show all posts
Showing posts with label tax refunds; direct deposit; effectur. Show all posts
Friday, April 17, 2009
Friday, January 30, 2009
Direct Deposit Puts Your Money In Your Pocket...Faster
Don’t wait around for a paper check. Have your federal tax refund deposited directly into your bank account. Choosing Direct Deposit is a secure and convenient way to get your money in your pocket faster.
Here are the main reasons 66 million taxpayers chose Direct Deposit in 2008:
1. Direct Deposit is secure. There is no chance for a check to get lost in the mail. Thousands of checks are returned to the IRS by the US Post Office every year as undeliverable mail. Direct Deposit eliminates the possibility you won’t receive your check and prevents your refund from being stolen.
2. Direct Deposit is convenient. The money goes directly into your bank account. You won’t have
to make a special trip to the bank to deposit the money yourself.
3. Direct Deposit is easy. When you’re preparing your return, simply follow the instructions for “refund” on your return. Just make sure you entered the correct bank account and bank routing numbers on your tax form and you’ll receive your refund quicker than ever.
4. Direct Deposit offers options. You can also electronically direct your refund to multiple accounts. With the "split refund" option, taxpayers can divide their refunds among as many as three checking or savings accounts and three different U.S. financial institutions. A word of caution — some financial institutions do not allow a joint refund to be deposited into an individual account. Check with your bank or other financial institution to make sure your direct deposit will be accepted.
For more information about direct deposit of your tax refund and the split refund option, check the instructions for your tax form.
This and other helpful tips are available in IRS Publication 17, Your Federal Income Tax. To get a copy, visit the Forms and Publications section of the IRS Web site, IRS.gov, or call 800-TAX-FORM (800-829-3676).
E-file
Publication 17, Your Federal Income Tax (PDF 2,085K)
1040 Central
Form 8888
Here are the main reasons 66 million taxpayers chose Direct Deposit in 2008:
1. Direct Deposit is secure. There is no chance for a check to get lost in the mail. Thousands of checks are returned to the IRS by the US Post Office every year as undeliverable mail. Direct Deposit eliminates the possibility you won’t receive your check and prevents your refund from being stolen.
2. Direct Deposit is convenient. The money goes directly into your bank account. You won’t have
to make a special trip to the bank to deposit the money yourself.
3. Direct Deposit is easy. When you’re preparing your return, simply follow the instructions for “refund” on your return. Just make sure you entered the correct bank account and bank routing numbers on your tax form and you’ll receive your refund quicker than ever.
4. Direct Deposit offers options. You can also electronically direct your refund to multiple accounts. With the "split refund" option, taxpayers can divide their refunds among as many as three checking or savings accounts and three different U.S. financial institutions. A word of caution — some financial institutions do not allow a joint refund to be deposited into an individual account. Check with your bank or other financial institution to make sure your direct deposit will be accepted.
For more information about direct deposit of your tax refund and the split refund option, check the instructions for your tax form.
This and other helpful tips are available in IRS Publication 17, Your Federal Income Tax. To get a copy, visit the Forms and Publications section of the IRS Web site, IRS.gov, or call 800-TAX-FORM (800-829-3676).
E-file
Publication 17, Your Federal Income Tax (PDF 2,085K)
1040 Central
Form 8888
Sunday, January 11, 2009
IRS Payment Plans
From direct debits to installment plans, there are a variety of ways to pay the IRS should you owe tax this year.
Credit CardAmerican Express®, MasterCard®, Visa® or Discover® can be used to charge tax due by calling either Link2Gov Inc. at 888-PAY1040SM (or using the Web at http://www.pay1040.com/) or Official Payments Inc. at 800-2PAY-TAX (or using the Web at http://www.officialpayments.com/). A convenience fee is applied at the time of payment.
Direct Debit
If you're e-filing your return, direct debit may be the solution. The IRS will debit a checking or savings account for your balance due. The plus side to direct debit is that you can specify the date of this debit, which means you can file early in February and still not pay until April 15.
Personal Check or Money Order
This is the traditional method of paying when mailing a paper return. Be sure to write 2008 Form 1040 and your social security number in the memo field and make your check payable to the United States Treasury.
Installment Agreement
This method of payment has to be approved by the IRS. To request an agreement, file Form 9465. Following approval, the IRS agrees to let you make monthly payments for your debt instead of payment in full. In return, you agree to make timely monthly payments and pay all future tax liabilities. This means you must plan to have adequate future withholding or estimated tax payments so that future tax liabilities are paid in full when you file your returns.
The IRS must let you use an installment agreement if you meet the following conditions:
The amount you owe does not exceed $10,000.
You've filed all required returns on time and haven't had an installment plan in the past 5 years.
The IRS determines you can't pay the tax in full when it's due and you furnish the IRS with all the information needed to make this determination.
You agree to pay the bill within 3 years and comply with the tax laws while the agreement is in effect. Interest, late payment penalties and a processing fee apply. The IRS processing fee is $105 for new agreements. But the fee is reduced to $52 if you make your payments by electronic funds withdrawal. If you have an income at or below established poverty levels, you may qualify to pay a reduced fee of $43 for new installment agreements.
Other requirements may also apply. See if you qualify for the reduced installment agreement user fee. To limit the amount of penalties and interest, pay as much of your tax bill as possible with your return. The IRS recommends considering other less costly alternatives, such as a bank loan, before considering an installment agreement.
Online Payment Agreement
The IRS has an Online Payment Agreement (OPA) application, allowing taxpayers to apply for installment agreements online. Now you can set up an agreement and arrange for payment without ever having to call or write the IRS. You must have already filed all required tax returns to use the OPA application. When you apply online, 3 payment options are available:
pay in full
short-term extension
monthly payment plan
Choosing a Payment Method
When considering which payment method best suits your situation, remember to carefully consider the interest rate on a credit card. Under an IRS installment agreement, you are charged interest at the current rate (adjusted quarterly) plus a late penalty of 0.5% (0.25% for taxpayers who filed returns on time). The rate for the first quarter of 2009 is 5%. Compare this to credit card rates of possibly 18% or higher. If you know you’ll have a balance due this year, it pays to know your options. It will save you money, worries and penalties.
Receiving Your Refund
Amended Return
Extension
Audit
Credit CardAmerican Express®, MasterCard®, Visa® or Discover® can be used to charge tax due by calling either Link2Gov Inc. at 888-PAY1040SM (or using the Web at http://www.pay1040.com/) or Official Payments Inc. at 800-2PAY-TAX (or using the Web at http://www.officialpayments.com/). A convenience fee is applied at the time of payment.
Direct Debit
If you're e-filing your return, direct debit may be the solution. The IRS will debit a checking or savings account for your balance due. The plus side to direct debit is that you can specify the date of this debit, which means you can file early in February and still not pay until April 15.
Personal Check or Money Order
This is the traditional method of paying when mailing a paper return. Be sure to write 2008 Form 1040 and your social security number in the memo field and make your check payable to the United States Treasury.
Installment Agreement
This method of payment has to be approved by the IRS. To request an agreement, file Form 9465. Following approval, the IRS agrees to let you make monthly payments for your debt instead of payment in full. In return, you agree to make timely monthly payments and pay all future tax liabilities. This means you must plan to have adequate future withholding or estimated tax payments so that future tax liabilities are paid in full when you file your returns.
The IRS must let you use an installment agreement if you meet the following conditions:
The amount you owe does not exceed $10,000.
You've filed all required returns on time and haven't had an installment plan in the past 5 years.
The IRS determines you can't pay the tax in full when it's due and you furnish the IRS with all the information needed to make this determination.
You agree to pay the bill within 3 years and comply with the tax laws while the agreement is in effect. Interest, late payment penalties and a processing fee apply. The IRS processing fee is $105 for new agreements. But the fee is reduced to $52 if you make your payments by electronic funds withdrawal. If you have an income at or below established poverty levels, you may qualify to pay a reduced fee of $43 for new installment agreements.
Other requirements may also apply. See if you qualify for the reduced installment agreement user fee. To limit the amount of penalties and interest, pay as much of your tax bill as possible with your return. The IRS recommends considering other less costly alternatives, such as a bank loan, before considering an installment agreement.
Online Payment Agreement
The IRS has an Online Payment Agreement (OPA) application, allowing taxpayers to apply for installment agreements online. Now you can set up an agreement and arrange for payment without ever having to call or write the IRS. You must have already filed all required tax returns to use the OPA application. When you apply online, 3 payment options are available:
pay in full
short-term extension
monthly payment plan
Choosing a Payment Method
When considering which payment method best suits your situation, remember to carefully consider the interest rate on a credit card. Under an IRS installment agreement, you are charged interest at the current rate (adjusted quarterly) plus a late penalty of 0.5% (0.25% for taxpayers who filed returns on time). The rate for the first quarter of 2009 is 5%. Compare this to credit card rates of possibly 18% or higher. If you know you’ll have a balance due this year, it pays to know your options. It will save you money, worries and penalties.
Receiving Your Refund
Amended Return
Extension
Audit
Saturday, January 10, 2009
Receive Your Refund Faster with Direct Deposit
It is tax time! Want your refund faster? Have it deposited directly into your bank account. More taxpayers are choosing direct deposit as the way to receive their federal tax refunds. More than 61 million people had their tax refunds deposited directly into their bank accounts last year. It's a secure and convenient way to get your money in your pocket faster.
Security. The payment is secure - there is no check to get lost. Each year thousands of refund checks are returned by the US Post Office to the IRS as undeliverable mail. Direct deposit eliminates undeliverable mail and is also the best way to guard against having a tax refund stolen.
Convenience. There's no special trip to the bank to deposit a check!
To request direct deposit, follow the instructions for 'Refund' on your tax return.
Want an even faster refund? Try e-file! Taxpayers who file electronically get their refunds in about half the time as those who file paper returns.
You can also electronically direct your refund to multiple accounts. With the new "split refund" option, taxpayers can divide their refunds among as many as three checking or savings accounts and three different U.S. financial institutions. The split refund option, using Form 8888, is also available for paper returns.
Caution: Some financial institutions do not allow a joint refund to be deposited into an individual account. Check with your bank or other financial institution to make sure your direct deposit will be accepted. Also, make sure you have the correct nine-digit routing number and your account number when selecting direct deposit.
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