Serving Southern Jefferson County in the Great State of Montana

Tax Refund Myths and Facts: Important Tax Return Update

1. Many taxpayers are still waiting to receive their 2020 Tax Refund due to unprecedented processing delays at the IRS and not at eFile.com. Details on the IRS Refund processing delays.

2. All of these sobering facts are no consolation if you, as an individual taxpayer, have not yet received your 2020 Tax Return Refund in 2021.

• Myth: A tax refund is always free IRS money a taxpayer gets with a tax return. Details.

• Myth: A tax refund is the result of sophisticated tax software or a tax professional’s planning.

• Myth: A tax refund amount can never be controlled or avoided by a taxpayer.

• Fact: A tax refund, in most cases - with some exceptions - is the result of insufficient tax withholding planning via form W-4 by individual taxpayers. Withholding, Tax Refund comparison chart.

• Fact: A tax refund is generally not the result of automated tax software or professional tax service. In most cases, it is the result of paycheck tax withholding or the number of qualified dependents.

• Fact: For Tax Year 2018, over 113 million taxpayers1 received refunds totaling over 331 billion dollars. In other words, most - not all - of these 113 million taxpayers could have kept most of that refund money with each of their paychecks had they planned their tax withholding.

• Plan, manage, or adjust your Tax Withholding, thus your Tax Return results! Select from Four W-4 Form tools and keep more of your money in your paychecks during the year so that you don’t have to wait until next year for your refund from the IRS. It’s your money, you only need to manage it.

Conclusion: This IRS Tax Refund delay might also impact your 2021 Tax Return due in 2022. Use the time between now and December 31, 2021 to plan out your next tax return.

 

Reader Comments(0)

 
 
Rendered 02/18/2024 08:20