IRS: Expert Reveals Reasons Why You're Not Getting a Tax Refund
The Internal Revenue Service (IRS) usually issues tax refund payments in less than 21 calendar days. However, if you are a filer who filed on paper and is expecting a refund, it could take six months or more to process your return.
The IRS has already cautioned taxpayers to expect smaller tax refunds as compared to what they received in recent years due to certain COVID-19 relief measures, according to The Hill.
Aside from a smaller tax refund, there are also several changes the IRS will be imposing aside. One new change that the IRS referred to is the taxpayer's employment status.
If they started a new job in 2022, the IRS explained that any supplemental wages earned last year, such as bonuses, severance pay, or payments for moving costs, are subjected to income taxes.
Being self-employed in 2022, working part-time, or having a side gig or two will also lead to different taxation.
Mark Steber, chief tax information officer for Jackson Hewitt Tax Services, said more taxpayers in this category are also projected to owe balances this year.
The IRS noted that you would need to file a tax return if you earn $400 or more from self-employment, side gigs, or part-time or temporary work.
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IRS Tax Refund
The IRS advises you to file an electronic, error-free tax return with direct deposit for payments to avoid any delays in getting your tax refunds.
The agency said to refrain from sending a paper return or asking for a refund check to expedite your tax refund payments.
Some of the reasons why a tax refund is delayed are because the filing needs to include accurate information.
Your return is earmarked for human review when an error is detected, which would lead to an IRS employee looking through the file to find the mistake. Reviewing for errors can add days or weeks to the processing time.
It could also mean that you have been a victim of tax fraud, with one person using your personal information to file a fraudulent tax return and claim a refund in your name.
The IRS reported more than 450,000 fraudulent claims for the 2020 tax-filing season. Out of those fraudulent claims, 44,000 were identified to be identity thefts.
It could also mean that the refund was sent to the wrong account. If you stated the wrong account number, your tax refund could be sent to someone else's account.
IRS Tax Season
Kathy Pickering, Chief Tax Officer at H&R Block, said there are other ways to increase refunds, such as availing the $7,500 tax credit, which particularly benefits those who bought an electric vehicle in 2022.
According to TIME, vehicles purchased on or after August 16, 2022, should be assembled in North America to qualify.
There are also states offering budget surpluses imposed on tax cuts or rebates, such as gas and grocery tax cuts and immediate tax rebates.
These states are California, Colorado, Florida, Hawaii, Oregon, and Virginia, among others.
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Written by: Mary Webber
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