tax refund myths

Myths are pervasive in all areas of life, but federal tax refund myths are often based on misinformation and outdated knowledge. So let’s break down these myths and get to the truth behind them. Myths about the Refund Process There are tons of tax refund myths that center on the process of receiving that refund once you’ve filed. There are several factors affecting this: when you file, how large and complicated your returns are, whether you’ve paid each tax bill (state, federal, local, etc.), e-filing versus paper filing, and more. Here are some of the most common federal tax refund myths about the process, according to the IRS. Myth: Calling the IRS or your tax software providers will provide a more accurate refund date. The best way to find the status of your federal tax return is to check out the IRS’s Where’s My Refund? tool or the IRS2Go app. Your tax preparer and the IRS phone representatives will not be able to give you more accurate information than what you can find on your own using the abovementioned tools. Myth: The Where’s My Refund? tool is wrong because there’s no deposit date; the refund amount is lower than expected. Updates to the IRS tools are made once a day. If there is no deposit date shown yet, you can most often expect your refunds in 21 days, unless the IRS needs more information or has questions for you about the information you filed. And as for the refund amount: the tax code is constantly changing, as is your personal and business income, revenue, taxable assets, and so much more. Most often, the IRS will send you a letter detailing any changes to your refund or tax bill. The refund amount can also be low due to outstanding financial obligations you have with the IRS. Myth: My tax extension means I have more time to settle my tax payments. This is one of the most popular tax refund myths we hear. An extension is not meant to give you or your business more time to pay your taxes – there are several due dates …

Continue Reading about 9 Federal Tax Refund Myths →