Whether you are getting ready to file your taxes or you have already done so, there are some things you should know about filing your IRS refund. Among them is that you may have to pay penalties if you file your return late. However, if you can avoid the sentence, you can increase your refund amount.
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IRS refund waiver for late-filing penalties
The IRS has waived several tax returns filed late due to the recent pandemic. This relief will benefit over 1.6 million individuals who missed their tax deadlines for the 2019 or 2020 tax years. Many of these people will receive automatic payments by the end of September.
In addition, many taxpayers who fail to file information returns will receive a waiver of penalties. The IRS has provided information on the penalty abatement in Notice 2022-36.
You must not have received significant penalties over the past three years to qualify for the waiver. You must also be current in filing your tax returns. The amount of the liability will be dependent on your circumstances. For example, you may be eligible for a penalty waiver if you have been unemployed or seriously ill.
You must complete and sign a notarized Request a Waiver of Penalty form to obtain the waiver. This form should be mailed to the IRS address listed on the form. In addition, the state will require a detailed reason for the release.
Tax refunds in 2023 may be smaller than this year’s
Several factors could affect your tax refunds in 2023. The IRS warns that they may be smaller than in previous years. Among them are changes in charitable donations and the lack of federal stimulus payments.
Some good news: taxpayers can still avail themselves of many tax benefits. However, you need to review the fundamental changes in the tax code to determine the best filing status.
You may need to reduce taxable income to receive a larger tax refund in 2023. This simple process can be done online with free tax calculators.
Another factor that will impact your refund is inflation. Inflation increases your take-home pay but can also lower some workers’ tax rates. As a result, the average amount of your refund in 2023 will likely be higher than this year’s, but the exact amount will vary.
The Internal Revenue Service has released information on the deductions for the filing year of 2022. It has also created a “Get Ready” page.
Check the status of your refund.
Using the IRS website or an IRS tax refund app, you can quickly check the status of your tax return. If you are e-filing, the status check can be done in less than 24 hours.
If you are mailing in your paper return, you can expect to wait up to six months for a refund. The process might take a little longer if your return was identified for additional review.
If you are e-filing your taxes, you can take advantage of the e-filing services that offer direct deposit. This will ensure you get your refund promptly. You can also ask the IRS to split your tax refund across multiple accounts.
If you’re not ready to file online, you can also check your refund status by visiting your local IRS office. They may not be able to give you the same speedy service, but they can provide you with helpful information.
Increase your refund if you’ve been overpaying taxes
Several ways can be used to increase your IRS refund if you have been overpaying taxes. Many tax credits are available to help you decrease your taxes, and using the TurboTax system can help you determine which ones are the best for you. Choosing the correct filing status can also help you avoid paying more taxes.
If you have overpaid taxes, you can request a refund by filling out Form 843. The form asks you to explain why you are requesting a refund. In addition, you must specify how much you want to apply to your taxes. Alternatively, you can request an informal refund by writing a letter to the IRS. If you are unsure how to make a claim, you should consult an experienced tax attorney.
If you are not interested in a refund, you can apply your overpayment to next year’s estimated tax bill. This will reduce the amount of taxes you owe the IRS, and it will also eliminate penalties that are associated with overpayments.
