What is Tax Refund ?
+3
meenu007
karan
Manoj
7 posters
- meenu007
- Posts : 9617
Join date : 2019-01-07
Re: What is Tax Refund ?
Thu Jan 10, 2019 5:34 pm
A tax refund is the difference between taxes paid and taxes owed. Each year (or each quarter, in some cases) a taxpayer submits a tax return that calculates his or her federal income taxes owed
- meenu007
- Posts : 9617
Join date : 2019-01-07
Re: What is Tax Refund ?
Thu Jan 10, 2019 5:34 pm
Typically, tax refunds occur because employees have too much withheld from their paychecks. Adjusting these withholding amounts can ensure that the taxpayer pays just enough taxes during the year.
- karan
- Posts : 11270
Join date : 2019-01-07
Re: What is Tax Refund ?
Thu Jan 10, 2019 5:35 pm
Tax credits and deductions are commonly confused, but each affect your refund in a different way.
- karan
- Posts : 11270
Join date : 2019-01-07
Re: What is Tax Refund ?
Thu Jan 10, 2019 5:35 pm
Tax deductions reduce the amount of income you'll be taxed on. If you make $45,000 and claim $2,000 in deductions,
- meenu007
- Posts : 9617
Join date : 2019-01-07
Re: What is Tax Refund ?
Thu Jan 10, 2019 5:35 pm
Although it's always exciting to get a check in the mail, a tax refund is not necessarily a good thing. If you receive a tax refund, it means you have had more taxes taken out of your paychecks than is necessary. It's akin to giving the government an interest-free loan. Thus, a tax refund is usually an indication that the taxpayer needs to do some better tax planning.
- karan
- Posts : 11270
Join date : 2019-01-07
Re: What is Tax Refund ?
Thu Jan 10, 2019 5:35 pm
you'll be taxed as if you made $43,000 when you file. The IRS will pay you the difference in your refund.
- karan
- Posts : 11270
Join date : 2019-01-07
Re: What is Tax Refund ?
Thu Jan 10, 2019 5:35 pm
The only way that you, or any other taxpayer gets back all of the federal tax withheld is if their taxable income is zero (or their tax is reduced to zero by credits).
- deepika2029
- Posts : 10954
Join date : 2019-01-07
Re: What is Tax Refund ?
Thu Jan 10, 2019 5:36 pm
The situation of Income tax refund arises when you end up paying more taxes than you actually owe.This may happen when there is excess deduction of taxes from your income.
- meenu007
- Posts : 9617
Join date : 2019-01-07
Re: What is Tax Refund ?
Thu Jan 10, 2019 5:36 pm
a tax refund or tax rebate is a refund on taxes when the tax liability is less than the taxes paid. Taxpayers can often get a tax refund on their income tax if the tax they owe is less than the sum of the total amount of the withholding taxes and estimated taxes that they paid, plus the refundable tax credits that they claim.
- karan
- Posts : 11270
Join date : 2019-01-07
Re: What is Tax Refund ?
Thu Jan 10, 2019 5:36 pm
So in your case, if you made less than $6,100, you would get all of your withholding back. If you made more than $6,100, you would not get it all back.
- karan
- Posts : 11270
Join date : 2019-01-07
Re: What is Tax Refund ?
Thu Jan 10, 2019 5:36 pm
Login to e-Filing website with User ID, Password, Date of Birth / Date of Incorporation and Captcha.
- deepika2029
- Posts : 10954
Join date : 2019-01-07
Re: What is Tax Refund ?
Thu Jan 10, 2019 5:36 pm
Income tax refund! Sounds quite familiar, doesn’t it? Many of us would have received a refund from the income tax department in the past.
- karan
- Posts : 11270
Join date : 2019-01-07
Re: What is Tax Refund ?
Thu Jan 10, 2019 5:36 pm
Go to My Account and click on "Refund/Demand Status".
- deepika2029
- Posts : 10954
Join date : 2019-01-07
Re: What is Tax Refund ?
Thu Jan 10, 2019 5:36 pm
Refund arises when taxes paid are higher than your actual tax liability (including interest). It could be in the form of advance tax, self-assessment tax, tax deducted at source, foreign tax credit etc. Given below is an illustration showing when and how a refund arises.
- karan
- Posts : 11270
Join date : 2019-01-07
Re: What is Tax Refund ?
Thu Jan 10, 2019 5:36 pm
Below details would be displayed. Assessment Year. Status. Reason (For Refund Failure if any)
- deepika2029
- Posts : 10954
Join date : 2019-01-07
Re: What is Tax Refund ?
Thu Jan 10, 2019 5:37 pm
There is no separate procedure as such in order to claim an income tax refund due to you.
- karan
- Posts : 11270
Join date : 2019-01-07
Re: What is Tax Refund ?
Thu Jan 10, 2019 5:37 pm
The IRS states that 9 out of 10 e-filed tax returns with direct deposit will be processed within 21 days of IRS e-file acceptance.
- karan
- Posts : 11270
Join date : 2019-01-07
Re: What is Tax Refund ?
Thu Jan 10, 2019 5:37 pm
Mailed paper returns – Refund processing time is 6 to 8 weeks from the date the IRS receives your tax return.
- karan
- Posts : 11270
Join date : 2019-01-07
Re: What is Tax Refund ?
Thu Jan 10, 2019 5:38 pm
In case of excess deduction of tax at source, claim of refund of such excess TDS can be made by the deductor.
- karan
- Posts : 11270
Join date : 2019-01-07
Re: What is Tax Refund ?
Thu Jan 10, 2019 5:38 pm
The excess amount is refundable as per procedure laid down for refund of TDS.
- deepika2029
- Posts : 10954
Join date : 2019-01-07
Re: What is Tax Refund ?
Thu Jan 10, 2019 5:38 pm
You might have noticed in many cases that the refund amount received by you is slightly higher than the refund amount claimed in your income tax return.
- karan
- Posts : 11270
Join date : 2019-01-07
Re: What is Tax Refund ?
Thu Jan 10, 2019 5:38 pm
This credit is refundable – meaning you may get more money in your refund than you had withheld from your pay.
- deepika2029
- Posts : 10954
Join date : 2019-01-07
Re: What is Tax Refund ?
Thu Jan 10, 2019 5:38 pm
This difference represents interest on income tax refund.
- karan
- Posts : 11270
Join date : 2019-01-07
Re: What is Tax Refund ?
Thu Jan 10, 2019 5:38 pm
In fact, you may get money back even if you didn't have any income tax withheld from your pay.
- karan
- Posts : 11270
Join date : 2019-01-07
Re: What is Tax Refund ?
Thu Jan 10, 2019 5:39 pm
The earned income credit can be substantial – up to $6,431.
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