“You will receive an income tax refund”! These are the words that all collaborators would like to hear. A federal income tax refund occurs if the tax payable is less than the sum of the total amount of refundable tax credits claimed and the total amount of withholding tax paid.
For many individual taxpayers, these federal tax refunds can be obtained through an earned income credit, an actual overpayment of tax refund, or an overpayment from previous years. Some people really believe that getting a large income tax refund is not the best thing to do. Instead, they believe the tax refund represents an interest-free loan repaid by the government. Others use their IRS tax refund as a “simple savings plan” in which they are surprised to get their money back every year. Always remember that it is better to get a tax refund from the IRS than to owe money to the government.
Once it is determined that you are receiving a tax refund, there are several options for putting that money in the hands of the taxpayer. Standard paper filing, e-filing with direct deposit, express repayments and early repayment loans are the options we have the ability to pursue and for many people that provide repayments, expedited repayment or early repayment loan Repayment is the repayment of choice.
Since the advent of the computer age and the great invention of the Internet, the Internal Revenue Service (IRS) has reacted fairly quickly to the benefit of electronic filing. Tax returns are filed much faster, tax refunds are processed faster, and money owed to the IRS can be obtained more quickly. Let’s take a minute to review the different IRS reimbursement options and what each offers the individual taxpayer.
Standard paper submission, although many are more familiar with this method of submission, is becoming obsolete. The time will soon come when the old paper tax return system will be completely eliminated and replaced by electronic tax return methods. If you are still one of the last Americans to file a paper tax return, you should expect to receive a tax refund in about six weeks; Today, thanks to heavy use of the Internet, six weeks to get a tax refund seems like an extremely long time.
Quick Tax Refund, which is quickly replacing standard paper submission, is an electronic method used to file federal tax returns and allows you to receive your refund in approximately 10-14 days. Much faster than the six weeks it took. In general, no additional fees apply to this type of storage and returns can be submitted free of charge through many local public access facilities.
The early repayment loan, however, is a little different. These must be administered by a tax professional through an established partnership with a financial and credit institution. There are several excellent options and many qualified tax professionals to complete your tax return; however, you will be required to pay a loan fee or a small amount of interest for the opportunity to obtain an early repayment loan. There are several restrictions on receiving a loan before repayment, and some of the restrictions may affect many people. For example, if you have to pay back taxes, child support, or liens and sentences, you may not be eligible for the early repayment loan.