Tax Tips: Myth-busting federal tax refunds
Many taxpayers file their federal tax returns and then eagerly anticipate details about their refund.
The best way to check the status of a refund is through the Where's My Refund? tool, the IRS2Go app, or by signing in to the taxpayer’s IRS Online Account.¬ But many people mistakenly think there are better ways to get their refund status. Here are some of the myths about tax refunds.
Myth: Calling the IRS, a tax software provider or a tax professional will provide a more accurate refund date.
Many people think talking to the IRS, tax software provider or their tax professional is the best way to find out when they will get their refund. There is no need to call the IRS unless Where's My Refund? says to do so.
Taxpayers that do want refund info by phone can call the automated refund hotline at 800-829-1954. This hotline has the same information as the Where's My Refund? tool.
Myth: Ordering a tax transcript is a secret way to get a refund date
A tax transcript will not help taxpayers find out when they will get their refund. IRS tools like Where’s My Refund? will tell taxpayers if their refund is approved and sent.
Myth: Where's My Refund? must be wrong because there's no deposit date yet
Where's My Refund? on both IRS.gov and the IRS2Go mobile app are updated once a day, usually at night. Even though the IRS issues most refunds within 21 days, it's possible a refund may take longer. Taxpayers should also consider the time it takes for the banks to post the refund to their account. People waiting for a refund in the mail should plan for the time it takes a check to arrive. If the IRS needs more information to process a tax return, the agency will contact the taxpayer by mail.
Myth: Where's My Refund? must be wrong because the refund amount is less than expected
There are several factors that could cause a tax refund to be less than expected. The IRS will mail the taxpayer a letter of explanation if any adjustments are made. Some taxpayers may also receive a letter from the Department of Treasury's Bureau of the Fiscal Service if their refund was reduced to offset certain financial obligations. Before calling, check Where's My Refund or wait for the letter to understand why the change was made. The letter will also tell the taxpayers know how to respond, if they need to.
Myth: Getting a refund this year means there's no need to adjust withholding for 2025
To help avoid a surprise next year, taxpayers should make changes now to prepare for next year. One way to do this is to adjust their tax withholding with their employer. The IRS Tax Withholding Estimator tool can help taxpayers determine if their employer is withholding the right amount.
Taxpayers who experience a life event like marriage, divorce, the birth or adoption of a child or no longer being able to claim a person as a dependent are encouraged to check their withholding. Taxpayers can use the results from the Tax Withholding Estimator to complete and submit a new Form W-4, Employee's Withholding Certificate, to their employer as soon as possible. Withholding takes place throughout the year, so it's better to take this step now.
... See MoreSee Less
Tax Tips to help make tax season go smoothly
Taxpayers can avoid mistakes and receive a timely refund by preparing to file their tax return ahead of time. Here are a few things taxpayers can do to get ready:
• Gather records: Good recordkeeping makes preparing a tax return easier. Organized tax records can help taxpayers find overlooked deductions and credits.
• Start with IRS.gov: IRS.gov is available 24/7, and it's the fastest way to get help. Millions of people use IRS.gov to file and pay taxes and get information about their accounts or answers to tax questions. The IRS Services Guide outlines the many ways taxpayers can get help from the IRS.
• Use online tools: IRS.gov has many useful online tools. One of them - the Interactive Tax Assistant – provides answers to many tax questions specific to an individual's circumstances. It gives the same answers that an IRS representative would give over the phone.
• Choose a reputable preparer: Tax preparers have different levels of skills, education and expertise. The IRS Directory of Federal Tax Return Preparers can help taxpayers find tax preparers in their area who hold professional credentials recognized by the IRS or who participate in the IRS filing season program.
• File electronically: The IRS encourages people to file their tax returns electronically and choose direct deposit for refunds. Filing electronically reduces tax return errors as the tax software does the calculations, flags common errors and prompts taxpayers for missing information.
• Choose direct deposit: Choosing direct deposit is a fast, reliable and secure way to receive a refund. Taxpayers can have their refund deposited into one, two or even three accounts. According to Treasury’s Bureau of the Fiscal Service, paper refund checks are 16 times more likely to have an issue, like the check being lost, misdirected, stolen or uncashed.
• Report all income: Take time to know what is taxable and nontaxable income. Taxpayers must report their income from all sources, including the gig economy, Forms 1099 and Forms W-2, Wage and Tax Statements.
• Report unemployment benefits: Taxpayers who received unemployment benefits must report the amount received as taxable income on their tax return.
• Accurate returns: Taxpayers should take extra time to review their tax return so they can file a complete and accurate return and avoid refund delays. Check all names and Social Security numbers as well as, account and routing numbers needed to get a direct deposit.
• Review Publication 17, Your Federal Income Tax: This guide covers the general rules for filing a federal income tax return. Available in English and Spanish on IRS.gov, and translations in Russian, Vietnamese, Korean and Chinese – simplified and traditional – will be available soon. The new format makes it easier to navigate and faster to download.
... See MoreSee Less
