Whether you’re expecting a good chunk of change or a more meager check, everyone needs to make sure they’re getting what they’re owed for their tax refund. These quick insights can help you understand what’s coming up.
3 Things to Know About Your Tax Refund
In theory, receiving your tax refund shouldn’t be all that complicated. The hard part is usually the tax filing itself. But it doesn’t hurt to be aware of the next steps.
1. Average refunds are reported to be $3,500.
This refund number is up 22% compared to last year. Granted, the stat is only taking returns filed through mid-February into account, but if you’re expecting a large refund such as this, it’s worth considering a tax review for this current year. You don’t really want to be giving the government an “interest-free loan.”
2. The ETA for tax refunds is 3 weeks.
The majority of taxpayers won’t be waiting around for their refund. The IRS states that 90% of refunds are issued within 21 days. That being said, returns filed electronically are more likely to be processed faster. If you filed by paper, then there may be more of a delay. There’s still a backlog of 2020 returns.
3. You still have a chance of your refund being wrong.
Once you receive your refund, be sure to cross-reference that number with what you expected. You don’t want a typo or another error with the 2021 tax incentives to throw off your calculations, so reach out to the IRS if there are any discrepancies. Clearly you shouldn’t be leaving money on the table. But you won’t want to cash a check that’s larger than expected, either. This might lead to additional problems if the IRS anticipates a repayment.
Don’t Forget—Fraud Still Happens
Also, please be aware that while there are plenty of precautions in place to protect your tax refunds, con artists are still at work. There are a couple rules of thumb to help you avoid these setbacks. Stay informed, and you’ll be in a better position to ensure you don’t run into any trouble come tax season—or even throughout the year.
For one, IRS agents never call taxpayers over the phone unless they’ve already sent an official letter. If you haven’t received a letter, then right away that “IRS call” should be a red flag.
What’s more, a real IRS agent will never use threatening language. They won’t demand immediate payment, and they won’t ask for your debit or credit card information over the phone. Scammers can certainly be convincing and persuading. Just remember to stay on guard. It’s also a good idea to remind your friends and family of these common scammer tactics.
If You Have Questions Along the Way, We’re Here to Help
When you expect a refund, you obviously want that money sent your way as soon as possible. And while your tax planner and accountant can’t exactly speed up that process, they should still be available to answer your questions!
Feel free to reach out to our team at NSO & Company if you have any concerns about your recent tax filing. We’d also be happy to talk with you about your strategy for next year. It’s never too early to plan ahead.
