What You Should Know About Tax Refunds
While many people don’t look forward to tax season, most have warmer feelings towards tax refunds, which follow soon after. Collecting a refund is not, however, always a simple endeavor, so if you want to learn more about filing a tax return or have questions about the best way to track or collect a refund, you should consider reaching out to an experienced Florida tax and IRS lawyer for help.
Taxpayers are no longer required to wait for a paper check when collecting a refund, although this is still possible. In fact, there are actually a few different ways to receive a tax refund, including via:
- Direct deposit, in which the refund is deposited directly into a taxpayer’s checking or savings account, or IRA account;
- Deposit into a Treasury account for the purchase of securities and savings bonds;
- Direct deposit into an already existing traditional IRA, Roth IRA, or SEP-IRA;
- Deposit into a Coverdell Education Savings Accounts (ESA);
- Deposit into a Health Savings Account (HSA);
- The purchase of savings bonds; and
- Paper check.
There are limits to certain methods of receiving refunds. The IRS, for instance, limits the number of direct deposits that can be placed into a single financial account or prepaid debit card, to three refunds per year. Taxpayers who exceed this limit will usually have to wait longer to receive their refunds and may encounter other problems.
Most refunds are issued within three weeks of the IRS’ receipt of a taxpayer’s return. It is not, however, uncommon for a refund to be delayed, as many tax returns require additional review. Other issues that could extend processing times include:
- Filing an amended return;
- Filing an injured spouse claim;
- Applying for an Individual Taxpayer Identification Number (ITIN);
- Requesting a refund of withheld taxes; and
- Claiming the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC).
One of the best ways to avoid delaying a refund is to ensure that your tax return is free of errors and is filed on time. For help, please reach out to our legal team today.
Splitting a Refund
Taxpayers who choose to receive their refunds via direct deposit also have the option of splitting their refunds into three separate accounts. A person can, for instance, ask the IRS to directly deposit a refund into a checking account, a savings account, and a retirement account by completing Form 8888 and submitting it with his or her income tax return. It’s important to remember, however, that refunds should only be directly deposited into accounts that are in a taxpayer’s or a spouse’s name.
Reach Out to an Experienced Tax and IRS Lawyers for Help
If you haven’t received your tax refund, need help amending your return, or have questions about the refund process, Please call dedicated tax & IRS lawyer, CPA, and Former Special Agent FBI, Ronald Cutler at Ronald Cutler, P.A. at 386-490-9949 today.