How to Get a Tax Refund?

Answer 1

When preparing income taxes for the year, people hope they will get a tax refund instead of owing more taxes. There are many things that taxpayers can do to lower the tax owed and increase their chance for a refund. Taking the right deductions and exemptions can change the outcome of the tax return so the taxpayer receives a tax refund instead of having to pay more to the IRS.

Tax Deductions

There are hundreds of deductions available to taxpayers. Itemizing a tax return is a more involved process and requires strong knowledge of tax laws. The taxpayer must be able to prove that the deductions he or she is taking are legal. For instance, if a taxpayer attempts to "write off" meals as a business expense, he or she will need to keep all receipts. The taxpayer could face stiff penalties from the IRS if called in for an audit and cannot produce receipts.

Types of Deductions

There are many types of deductions for individuals and businesses that can be used to lower the total tax owed to the IRS. Deductions for business may include gas, office space, meals, travel and business supplies. Individuals can use deductions such as first time homebuyer's, higher education, daycare and certain energy tax credits. Business and individuals may claim deductions for donations (clothing, money and other items) which can make a huge difference in whether the taxpayer receives a tax refund at the end of the year.

Receiving the Tax Refund

After all deductions have been taken and the taxpayer knows that he or she will receive the refund, it is time to decide how to receive the refund. There two choices available, so choose wisely. The tax refund can be sent through the mail, but, the wait for the refund is much longer. This is the best choice for people who do not have a checking account. The second choice is an EFT payment. That means the tax refund will be sent electronically to the bank account of the taxpayer. The tax refund is received approximately 3 weeks to a month earlier than a mailed refund check.

Not everyone will receive a tax refund on their income taxes. If income forms are filled out properly, more taxpayers have a chance to receive a refund. A professional tax preparer is recommended for people who have a large number of deductions. A professional is well educated in tax laws to ensure there are no issues that would cause an IRS audit.