The Truth about Tax Refunds

Most people are excited when they find out that they are getting a tax refund. Many people even plan for and count on their refund each year, coming up with big ideas about what they will do with their money. While these refunds get a good name, however, they are actually not a good thing.  

When you get a tax refund, you are getting it because you have paid more taxes than necessary during the regular tax year. This could be because you had too much money withheld by your employer or, if you’re self-employed, it could be because you overpaid your estimated taxes.

Some people don’t really mind getting a big refund of their own money once a year. They view it as a “bonus” of sorts. If you’re not in that camp, though, and you’d like to see more of your own money throughout the regular working year, talk with your employer or work with a professional accountant to figure out what you can do to pay less in taxes throughout the year. You actually have many options for making this happen.

When Should You Receive Your Refund?

If you’re fine with getting a refund once a year or it’s too late for you to change things for the upcoming tax season, you may be wondering when you can expect your refund.

Obviously, the sooner you file your taxes, the sooner you can get your refund, so make sure you file on time. You can also receive your refund faster if you file online. Generally, people who file taxes online receive their refunds a little over three weeks later. People who file the old-fashioned way, i.e. on paper, generally have to wait a little over six weeks or as long as eight weeks.

Mistakes made in filing can cause delays on these estimates, so make sure to go over your tax forms very carefully before sending them off. Ideally, you should have a professional prepare or at least look over them for you in order to avoid errors.

Hopefully, you now understand the tax refund process a bit better. If you do run into any questions or problems, however, remember that asking a professional for assistance is always your best bet. While these refunds get a good name, however, they are actually not a good thing.

When you get a tax refund, you are getting it because you have paid more taxes than necessary during the regular tax year. This could be because you had too much money withheld by your employer or, if you’re self-employed, it could be because you overpaid your estimated taxes.

Some people don’t really mind getting a big refund of their own money once a year. They view it as a “bonus” of sorts. If you’re not in that camp, though, and you’d like to see more of your own money throughout the regular working year, talk with your employer or work with a professional accountant to figure out what you can do to pay less in taxes throughout the year. You actually have many options for making this happen.

When Should You Receive Your Refund?

If you’re fine with getting a refund once a year or it’s too late for you to change things for the upcoming tax season, you may be wondering when you can expect your refund.

Obviously, the sooner you file your taxes, the sooner you can get your refund, so make sure you file on time. You can also receive your refund faster if you file online. Generally, people who file taxes online receive their refunds a little over three weeks later. People who file the old-fashioned way, i.e. on paper, generally have to wait a little over six weeks or as long as eight weeks.

Mistakes made in filing can cause delays on these estimates, so make sure to go over your tax forms very carefully before sending them off. Ideally, you should have a professional prepare or at least look over them for you in order to avoid errors.

Hopefully, you now understand the tax refund process a bit better. If you do run into any questions or problems, however, remember that asking a professional for assistance is always your best bet.