Tax Refunds

An IRS refund, commonly referred to as a tax refund, is money you receive back after filing taxes. When you file your tax return, you will be calculating your tax bill by accounting for your income, taxes that have already been withheld, and any deductions or credits that may apply to you. If your tax liability falls below zero due to these factors, you could get money back in the form of a tax refund. To get the largest tax refund possible, you want to account for any deductions or credits you might qualify for because they will lower your tax bill. However, if you didn’t have sufficient taxes withheld from your paycheck throughout the year or owe back taxes from previous years, you will not be eligible for a refund. Instead, you’ll owe money to the government agency.

In regards to receiving your refund, the sooner you file, the sooner you should receive it. Typically, refunds take about three weeks to process; however, the IRS has until October 15th to issue all tax refunds. Because you file your state and federal tax return separately, you will receive the respective refunds separately. Additionally, IRS refunds are typically larger than state refunds because you pay a larger portion of your income to the federal government throughout the year. If you need help figuring out whether you owe or should receive a refund for this year’s taxes, Community Tax can help. Browse our library of informative tax refunds articles to learn more.



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