IRS refund season is upon us and you might be asking yourself “Where is my IRS refund?”. If you have already completed your tax returns and are expecting to receive any refund amount, great or small, there are several key points to be aware of regardless of the complexity of your IRS return.
- IRS Refund Options: There are now three options you can choose from when receiving your individual federal income tax refund – direct deposit, U.S. Savings Bonds, or a paper check.
- Split Refunds: This allows you to divide your refund in any way you want, and direct deposit your refund into three separate accounts within the U.S. People choose to do this for a couple reasons; you can easily deposit into a checking account for more immediate needs, while concurrently bolstering your savings account. Additionally, it allows for a quicker refund than by using paper checks. Liz Gorham, Ph.D., of South Dakota State University notes that the IRS estimates that 52.7 million refunds, amounting to $134.2 billion, were deposited directly into bank accounts last year.
- Processing Time: Your IRS refund will usually be issued within six to eight weeks from the date it is received, so long as your paper tax return is complete and has no errors. For electronic filings, the refund should be issued approximately three weeks after it was received.
- The Effect of Payment Plans: If you are currently making payments under a payment plan for a prior year’s federal taxes, your federal tax refund will be automatically applied against the amount that you owe. Additionally, if you owe anything on federal tax, state tax, a student loan, or child support, these debts can affect your refund totals.
- Filing a Joint Return: The IRS can direct deposit a refund on a joint IRS return into your account, your spouse’s account, or a joint account. Additionally, Illinois couples who have entered into civil unions will be able to jointly file their 2011 state tax returns, according to the Chicago Tribune.
- Paying a Loan: The IRS will not allow a direct deposit to be applied to a loan account.
- Delayed IRS Refund: There are a number of different reasons for delayed refunds, including:
- Incorrect or missing social security numbers
- Incorrect tax entered based on taxable income and filing status
- Computation errors in figuring the taxable income, with-holdings, credits and deductions
- Withholding and estimated tax payments entered on the wrong line, and general math errors
Understanding your options can help you avoid confusion about where your IRS refund is, direct your IRS refund to the proper location (hopefully your bank account!), and make tax season less stressful.
However, problems with the IRS or the Illinois Department of Revenue can run deeper than these issues and be very frustrating to deal with. If you are dealing with complex problems such as IRS audits, appeals, federal refund litigation, tax court petitions, tax liens, issues with your IRS return, withholding tax litigation, or civil tax litigation, if may be advisable to contact a lawyer who has significant experience dealing with the IRS.
DISCLAIMER: All information on this website are provided for informational purposes only and are not intended to be construed as legal advice. Suburban Legal Group PC shall not be liable for any errors or inaccuracies contained herein, or any actions taken in reliance thereon.