So now tax season is over. If you filed, congrats. You get to kick back and wait for that refund if you getting one. Yet for those with post-tax season anxieties and questions, you are probably wondering, now what?
When will I get my refund?
The most secure method of receiving your refund is direct deposit to your bank account – checking or savings. You don’t have to worry about thieves at the mailbox if the funds are transferred to you electronically. I does not cost extra, but keep in mind if you did not do direct deposit, it is too late to go back and ask for one. Just note this for next year. Keep an eye on your bank account 1 to 2 weeks after you have filed for your refund. With paper returns it could take as much as four to six weeks.
Why is my tax refund being held up?
If it has been more than two weeks since you electronically filed or more than four weeks if you paper-filed your return, go to the Where’s My Refund button on the IRS website. You need to know your filing status, your Social Security number and the exact amount of the refund from the tax return. Some reasons for the hold up or relinquishment in the refund for various reasons: past due student loans, unpaid child support, unpaid state income tax liabilities, claiming injured spouse, or questions about the validity of the Earned Income Tax Credit claimed on your return.
What if I can’t pay my taxes?
If you filed your return without paying the tax owed, it’s much better than not filing at all. I often hear stories of taxpayers who don’t file because they can’t pay. Big mistake. By not filing, you incur a “failure to file” penalty on top of the failure to pay penalty. The failure to file penalty racks up at 5% per month, capping out at 25%. That’s $250 on a $1,000 liability. if you have filed but didn’t pay and you think you can pay off the balance within six months then begin making payments as soon as possible. See our IRS Payment plans page.