Where's My Tax Refund? A Question with an Easy Answer
Many of us count on refunds each year, although that’s not necessarily a great financial strategy. Any reduction in that refund or substantial delay in receiving it creates stress, and sometimes creates hardship. Let’s see where our tax refunds are.
If the issue is simply tracking the process once you’ve filed, the IRS has a site dedicated to that. It has all the basic info you’d expect, as well as a bit of a warning which puts me in the awkward position of AGREEING with the IRS about something:
Don't count on getting your refund by a certain date to make major purchases or pay other financial obligations. Even though the IRS issued more than 9 out of 10 refunds to taxpayers in less than 21 days, it's possible your tax return may require more review and take longer.
Of course, if you’re reading this blog and utilizing the Goalry family – Taxry.com, Wealthry.com, Loanry.com, etc. – you’d never put yourself in that sort of position anyway, right?
Often, though, delays in our refund and asking ourselves “where’s my tax refund?” end up being avoidable on our part. As often as the government sometimes mucks things up, it is a government of-the-by-the-for-the people and all that. Seeing as how WE’RE “the people,” our government’s ability to unnecessarily complicate things largely reflects OUR tendency to do the same.
I know you’d rather not think about this until April, or at least until after, say... Valentine’s Day or even St. Patrick’s. But the time to ask yourself where’s my tax refund and make sure you’re not doing anything to delay or reduce your refund is NOW. You can keep your Pentatonix CDs playing and grab an extra no-bake cookie or two, but if you can spare a few moments, I THINK you’ll find it useful to walk through a few tax-related issues with me before you take the family to see all the pretty lights tonight.
More Preparing, Less Repairing
Far too often, the answer to “Where’s my tax refund?” is “We’re waiting on more information from you, silly.” Or, worse, “It’s tied up because you don’t have the right paperwork to support what you’re filing.”
My colleague, Kevin Strauss, has created an amazing “tax prep” checklist in anticipation of the upcoming season. It’s a must-read – AFTER you’re done here, of course. (Let’s dance with the one what brought us before drifting on to prettier partners, yes?) Here are a few highlights:
Have Your Paperwork Gathered and Organized
It sounds so obvious and rather simple, but how often have we found ourselves up against a deadline and realized we’re missing an essential 1099 or that we’ve somehow misplaced our own children’s Social Security Numbers? And what about documentation for that one deduction we were hoping to qualify for this year? I could have sworn I put it somewhere safe so that I could find it again. (It appears I succeeded at the FIRST half of that undertaking, at least.)
If for some reason you haven’t received a W-2 or any other relevant document by the end of January, start making those polite but insistent calls the first week of February while there’s still plenty of time to get it sorted out. Oh, and if you’re itemizing, you’ll need records of all charitable deductions, last year’s state refund (if any), and all the other usual things.
Small Business Finances, Forms, and Folderol
If you’re a small business owner, or even if you have a little income here and there from freelance work or consulting, that’s when the paperwork REALLY gets fun. Don’t let it come to our famous question “where’s my tax refund?”. Take care of the paperwork on time.
You’ll need documentation of all income from the calendar year and a detailed accounting of business-related expenses. (Don’t forget mileage – just your luck to be wrapping up taxes on the one night you let your daughter take that car.) If you’ve been paying quarterly estimated tax payments, you should have a record of those as well.
If you haven’t, you should probably take a moment and check whether or not you SHOULD be. If you’re planning on claiming home office expenses, go ahead and check out those requirements in advance. You’ll also need a measuring tape and your utility bills for the year. I’m not even kidding.
Life Events
Major life events can dramatically impact your taxes. If you bought a home, sold a home, married, divorced, or moved, or if any member of your immediate family moved in, moved out, or – I’m sorry – died, be aware that can change your deductions or other aspects of how you file.
Where’s My Tax Refund? (Common Tax Mistakes)
Perhaps the most frustrating delays are the ones that turn out to have been the most avoidable. Don’t get so caught up in emotion or anticipation that you let something small create a substantial delay. Here are a few of the most common – and embarrassing – avoidable errors.
Forgetting to Sign the Return
This isn’t hard to do, but it’s essential. If you file hard copies, this is a pen-and-paper requirement. If you file electronically, you’ll be led through the process of signing electronically.
Filling in Numbers Incorrectly
Maybe the reason why you even need to ask yourself “Where is my tax refund is because you left out a digit or swapped two numbers accidentally. Or, worse, you somehow entered the wrong Social Security Number (or entered it in such a way that it was read incorrectly). Double-check these before filing. Then check them again. It’s worth it.
Math Errors
These are usually an issue for those of us filing old school on a paper form. Use a calculator no matter how good your math is, and double-check the results. Always.
Leaving Out Income
Just because you didn’t receive a W-2 or 1099-misc or whatever doesn’t mean whoever paid you for something didn’t report it to the I.R.S. Even if they didn’t, you still owe on that income. Report it even if you don’t have the forms. Always.
This last one is a biggie. We hear about it every year, and I promise you’ll see stories about it again in 2020.
Filing an Extension Doesn’t Mean You Don’t Have to Pay
You still have to pay based on your best estimate until you can get your paperwork together and file properly. Otherwise, there will be fees and penalties – and they are substantial enough to help you remember next time.
I realize that the last one isn’t a “Where’s my tax refund?” issue, but it’s still pretty important and I try to work it in any chance I get.
Faster Refunds
Once we’ve eliminated as many potential problems as possible, there are a few things you can do to speed up the actual processing of any refund you receive. None of them are guaranteed, but they’ll usually help move things along significantly.
File Early
There’s no law that says you have to wait until April 15th. This is a very good tip that can help save you from having to even ask yourself the infamous question “Where’s my tax refund?”. Once you have all of the relevant paperwork, there’s no reason to wait. Statistics on this vary, but most taxpayers who file in February or early March find that things move along much more quickly than when they wait. When you think about the sheer volume of returns being submitted around the middle of April, that’s really not a surprise, is it?
File Electronically
Most of the delays associated with refunds aren’t about audits or paperwork errors so much as too few employees processing too many forms. The average time to process a tax return mailed in old school is 6 – 8 weeks. Those filed electronically usually take less than half that time.
Ask for Direct Deposit
It takes time to print a physical check, time to mail it, time for it to be delivered, and time for you to take it to the bank or ATM and deposit it, at which point it takes time for the check to officially clear (even when it’s from the I.R.S.) Direct deposit can shave a week or more off the process, and costs you nothing more than the minute-and-a-half it takes you to fill in a few numbers. Therefore, it’s another great way of avoiding having to deal with thinking about “where’s my tax refund”.
Keep Track of Things from the Beginning
In other words, go ahead and start tracking that return a few days after you’ve filed. If things pass the 21-day mark, contact the I.R.S. promptly in order to make sure nothing serious is causing the delay. Be polite, of course, but be persistent as well.
Where’s My Tax Refund? (Maybe You Shouldn’t Want One.)
Why in the world would anyone suggest we SHOULDN’T want a nice, big tax return? That’s money we’ve EARNED, right? Of course I’ll be asking myself “Where’s my tax return?!” It’s just that the government has been saving it for us and now we can do whatever we want with it – buy that better TV, take that trip, maybe even pay off those credit cards!
The problem is that the most common reason for a large tax refund is that you’re having too much withheld from your paycheck each period. That’s money you’re unable to use throughout the year and which you’re essentially loaning to the government absolutely FREE. Nothing against Uncle Sam and the many wise, responsible ways in which he’s no doubt putting your overflow to use, but you could be using that money yourself... probably just as effectively. Maybe more so, depending on your point of view.
You could be investing a bit more in your kid’s college fund, or paying more towards your mortgage, vehicle loans, credit cards, or other debt – which not only lowers what you owe but reduces how much interest you’ll be paying on the balance. If nothing else, you could at least be putting it in a savings account of some sort and earning a LITTLE interest. You can even take the money out every April and pretend it’s magically appeared from somewhere else, if you wish.
While You’re Waiting
There’s so much more to managing your personal or small business taxes than sitting around waiting for a refund once a year. There are strategies you can employ throughout the year to maximize your benefits and reduce your stress. That is, in fact, a large part of why we made Taxry.com part of the Goalry family.
Take Control over Your Finances
We don’t think personal finances have to be as complicated as they so often are. There’s simply no reason for us to have to go so many places and master so many systems just to make sure we’re budgeting effectively for today and investing meaningfully for tomorrow. Our goal is to help you take control of your financial world by bringing together online tools, access to lenders, and quality advice about a wide range of financial matters through our blogs and articles.
For example, you probably don’t want “Where’s my tax refund?” to be your first question for April 2020. Maybe we could start with “How can I save the most on my taxes?” or “What are all these different types of taxes, anyway?” As it turns out, we can help answer those – and lots more.
Goalry.com Can Help You
I suppose you could think of us as a “tax store,” except we’re not actually trying to sell you anything. (I was pushing for t-shirts and mugs, but the boss said no, so...) We’re not looking to tell you WHAT to do. For that matter, we’re not offering to do it for you. But we can help you with your personal or small business tax management by sharing information and providing organizational tools – not just on Taxry.com, but on Budgetry.com and Creditry.com as well.
Seriously, it’s like a whole array of related knowledge and services, right at your fingertips. Gluten-free and now in lemon fresh or pine! (Right now, somewhere in the country, a confused reader is awkwardly trying to sniff their screen. I almost feel guilty.)
Your Favorite Tax Store
IRS Isn’t Your Enemy. April 15th Shouldn’t Be the Most Stressful Day of the Year.
What If I’m Not Getting A Refund?
Well, that at least simplifies the answer to the question, "Where’s my tax refund?" You’re not getting one, my friend – sorry. Now, about that check you’ll be writing to us...
Conclusion
Hopefully, you have the resources to pay your taxes in full and on time. If not, don’t wait to look at what needs to be adjusted on your withholding or what savings strategies you need to implement with outside income towards next year. This is not a position you want to be in regularly. However, we do specialize in connecting folks in need of short-term personal loans with reliable, reputable lenders. If you decide to go that route, you can keep the IRS happy (always important!) and pay back the full amount on terms you’ve negotiated with an online lender of your choice.
But again – this shouldn’t be an annual solution or anything. Let’s look at that withholding and how much we’re setting aside throughout the year.
Where’s my tax refund? Hopefully, it’s on the way. If you’ve taken some of the advice above, maybe it’s already been deposited!