What Is a Tax Refund? Definition and When to Expect It

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If you don’t want to be on the hook for their debt, and are eligible you could file Form 8857, Request for Innocent Spouse Relief. However, Innocent spouse relief is only for taxes due on your spouse’s income from employment or self-employment. You can’t claim relief on your own income, household employment taxes, individual shared responsibility payments, business taxes, or trust fund recovery penalties for employment taxes.

Get help addressing an offset on your taxes

The Earned Income Tax Credit (EITC) gives low- and moderate-income workers and families a tax break. The amount of credit that a taxpayer receives depends on their income, filing status, and the number of children they have. For example, eligible taxpayers who have no children will receive $600 for tax year 2023. The final rule creates certainty for consumers by defining the specific circumstances in which airlines must provide refunds. Prior to this rule, airlines were permitted to set their own standards for what kind of flight changes warranted a refund.

At the same time, they should remember that filing taxes can be complex, and it can involve attaching multiple additional forms and schedules. In this case, it might be a good idea to work with a tax professional to prepare your return. Those who have complex tax situations might need to attach additional forms and schedules to their return.

A Quick Guide To Tax Form 1099-G

With proper financial planning, the tax refund can help them replenish their savings or prepare for a large purchase, such as a down payment on a home. For some, having the extra cash on standby is useful for covering unexpected costs, such as an emergency medical procedure. A large tax refund can feel good, and some taxpayers even treat them as a savings vehicle, but tax refund definition taxpayers would be better off not overpaying their taxes in the first place. A tax return refers to the various tax forms a person or a business fills out to report their income and expenses to the IRS or another tax authority, such as a state department of revenue. Some people consider tax refunds an alternative savings plan and look forward to the lump-sum repayment.

If you e-file your return, you can usually see your refund status after about 48 hours with Where’s My Refund? You can get your refund information for the current year and past 2 years. Impact on your credit may vary, as credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations. Once you’ve filed, you might wonder how long you need to keep your paperwork or files. However, it’s worth keeping in mind that the agency can audit further back.

Earned Income Tax Credit (EITC)

When you start a job as an employee, you fill out a W-4 form to help your employer determine how much tax to withhold. That magical number depends on whether you have another job, a spouse who works, dependents, capital gains or losses, or itemized deductions. If you received a tax refund via check and the amount is less than you expected, the IRS will provide a note explaining the reason and further steps, if needed. If it’s confirmed that you should have received more, you may cash the check already received, and you will receive another check for the remaining amount.

• Filing this return requires documentation including those involving rents, gross receipts, and costs of goods sold.
• According to the IRS, the average refund for the 2023 tax season was $2,753.
• If you’re paying estimated taxes, there are even more reasons you might get a refund, but they all stem from you paying more than you owe throughout the year.
• The IRS typically provides you with a notice by mail anytime your tax refund is different than the amount you claim.
• Filers also can claim credits, which reduce the total amount they owe in taxes.
• For some, having the extra cash on standby is useful for covering unexpected costs, such as an emergency medical procedure.

For example, suppose you are an unmarried individual who falls into the single filing status, and you work for an employer. You had $3,500 withheld from your paychecks throughout the course of the year. If you had no adjustments to your income and only took the standard deduction of $12,550, your taxable income would be $22,450. Based on this taxable income, your taxes owed would be $3,570, but since you already paid $3,500 in taxes throughout the year, you would owe just $70 and would not get a tax refund. Tax returns ask for information about the types of income generated throughout the year, and allow filers to claim tax breaks, such as credits and deductions.