Tax refunds are a poorly understood aspect of tax season. Most people assume that when April comes around, they will get a nice check from the IRS. In fact, many American workers rely on their tax refund to pay essential bills. There are several reasons why you might not receive a tax return. Outlined below are some of the common factors that may disqualify you from getting a tax refund from the government.
You May Have Filed for an Extension
When submitting their taxes, some people choose to file for an extension. A tax extension allows taxpayers to delay filing their tax return while submitting an estimated payment. If you filed for an extension, you may end up waiting longer to receive a tax refund. When you are determining whether or not to file an extension for your taxes, it can be helpful to consult with a skilled tax resolution lawyer, who can provide advice specific to your situation.
The Withholding You Claimed on Your W-4 Was Correct
The government uses a withholding tax to tax at the source of income—usually the employer—in place of an income tax, which is taken after the wages have been earned. When you file a W-4, you will have to denote a withholding amount. Based on the information you provide your employer will withhold a certain amount of money from your paycheck and use it to pay the government directly. This withheld amount is a credit that taxpayers can use against the income taxes they have to pay during the year.
One of the most common reasons that people receive a refund check from the government is that they have withheld too much from their paycheck. Conversely, if you filed your withholding correctly, your refund is usually allocated into your paychecks over the course of the year. This means that instead of receiving a refund during tax season, you should notice that your paychecks get incrementally larger as the year goes on.
Your Tax Return Is in Process
One reason you might experience a delay in receiving your tax refund is because it is still processing. This is especially applicable to people who file a paper return. Also, if you filed your taxes close to the date they were due, it will take at least a month for the IRS to calculate whether you will receive a refund.
You Might Have Other Taxable Income
Many people have various sources of taxable income, such as IRAs and other investments. If any of your investments increased in value, it might offset your tax refund. Since the only income taxes withheld are from your employer, any income earned through investments might result in owed taxes that would offset a potential refund.
Consult a Skilled Tax Resolution Lawyer
The tax process is inherently complex, and as a result, many workers and businesses accrue tax debt. If you or someone you know is struggling with tax debt, you should consult with a skilled tax resolution lawyer. Without a tax lawyer, you may miss out on programs that could reduce your tax liability. At Morgan Sebastian Law, we’re eager to confront all the complexities of your tax issues. When you work with Attorney Becky Sebastian, you will experience compassionate attention that provides a sense of relief and peace of mind regarding your financial state.