Tag Archives: tax

How to Check Federal Income Tax Refund Status?

People struggling with their finances keep checking their federal income tax refund status, as an early refund would provide them the much required financial boost. Many people, however, are not aware how to find this tax refund status online. This status check can be quite baffling, at times, since you should know about the state that manages the refund process.

Federal Income Tax Refund

Time taken to receive a refund depends on what technique you have used to file your returns – electronic, via US mail, etc. Filing via post is definitely a slower process than filing through email. Hence, it takes around six weeks to receive a refund after IRS receives your return file by post, and around 3 weeks in case of email.

You can also choose the mode of payment you would like to receive your refund through. There is an electronic transfer or a direct deposit, which is definitely quicker than the other option, check via mail. The selection of mail payment should be maddened in form 1040 while filing the return. If you want IRS to pay you via electronic payment option, you need to fill up a separate 8888 form.

How to Check Federal Income Tax Refund Status?

If you want to check you Federal income tax return status, you can visit the official IRS website (irs.gov) and go to ‘Where’s my refund’ page. Or you can check it over the phone by dialing 1-800-829-1954. You cannot, however, check the status immediately after filing the return. In case of email filing, you can check it after 3 days, and in case of mail, you can know your status after 3 weeks.

How to Get Quick IRS Tax Refund?

One of the major reasons in day of tax refund, other than mode of filing it, is errors in the form. By eliminating these common errors, you can avail a quick refund:

  1. Incorrect Social Security Number
  2. Incorrect income report
  3. Arithmetical errors in calculating deductions, taxable income, earned income credit, total tax payments, etc.
  4. Common mathematical errors
  5. Particulars not filled in, or filled in under wrong headings

Besides these delays, each state has different rules for tax refund process. You can visit the IRS website and know about rules governing tax refund process in your state.

How to Save Money on Taxes?

Most people dread tax period as it involves lots of paperwork and exploring their financial habits. Yet, everyone wants to know how to save money on taxes. While it’s quite impossible to eliminate tax completely, there are ways you can reduce the payable amount.

  1. Follow the Trend – Go Green
    Everyone seems to be going green. The fact is, however, it saves more money than it conserves the earth. Along with cutting down on your electricity bills, reducing the usage of home energy can help you save money on taxes, under Energy Policy Act. You can log on to energystar.gov to know if you qualify for such deduction.
  2. Save on Medical bills
    If you have saved the receipts of all your medical expenses, you don’t have to bother much about how to save money on taxes. Almost every medical expense like buying prescription drugs, hospitalization bills, medical insurance, visit to doctors, etc are deductible if you have the proof. To know the full list of expenses that are cover under this benefit, visit irs.gov.
  3. The Expense of Charity
    Amount donated to recognized charitable trusts is deductible, and all of us are aware about it. You can, however, also deduct money spent on any other expenses that were related to the charity. For instance, traveling expenses paid to reach the charitable organization is also deductible.
  4. Are You Paying for Your Diploma?
    Of course, we all pay for our diplomas. If you, however, have borrowed a student’s loan, the interest you pay every year is deductible from the taxable income.
  5. Advance Payment
    Mortgage payments of this year are deductible. But if you opt to make next year’s payment in advance, i.e. in this year, you are eligible to deduct it from this year’s income.
  6. Something for First Time Employees
    After graduating from college, you start seeking job actively. If you are offer a job out of your locality or state, or any place that requires relocating, all your moving expenses are deductible. So, have an expensive pack up, you now know how to save money on taxes.
  7. Save Money by Managing Your Money
    Expenses, up to 2% of you yearly gross incomes, incurred to manage your funds are deductible. This would include expenses like paying for a safety box, communication with your broker, buying a tax preparation software, buying investment magazines, etc.