My IRS Refund

How to Estimate, File for and Track Personal Income Tax Refunds

It’s that time of year again.  Your personal income taxes are coming due and the date will be here quicker than you think.  Now is the time to prepare your documents, file your taxes and get your IRS refund.  How much will you get back and how long it will take to get it?

How Can I Estimate My IRS Refund?

If you want to know how much of an IRS refund you may get, start by collecting the information you’ll need to get an estimate.  There are a number of estimate sites out there (just do a search for “Tax Estimator”), but to use any of them you’ll need the following information handy:

• Number of exemptions you’ll be claiming
• Amount of your income from all sources
• Information on any deductions, payments and credits

The amount of an IRS refund you will receive will depend on the number of exemptions you claimed on your Form W-4 with your employer.  The fewer exemptions you claimed, the more taxes that were taken out of your check.  If this resulted in an overpayment of taxes you will receive an IRS refund.  However, if you claimed more exemptions than you take on your return you may have underpaid and would owe taxes to the IRS.  And, if you are self-employed and didn’t make any estimated tax payments you may also owe taxes plus penalties.

There are several new deductions and credits available this year due to the Economic Stimulus Plan which may make you more likely to get an IRS refund.

How do I File for My IRS Refund?

To file your income taxes most people will need to fill out some version of IRS Form 1040.  Depending on your circumstances there may be many additional forms to file to claim deductions or account for income.  The easiest way to ensure you are filling out all the forms you need and claiming all the deductions you can is to use an online tax preparation site, like www.efiletaxreturns.com.  The site will ask you pertinent questions about your income, expenses and deductions and automatically fill in the correct forms for you.  It will also allow you file electronically, which allows you to receive your IRS refund more quickly.

When Will I Get My IRS Refund?

When you’ll receive your IRS refund will depend on when and how you file your taxes.  The IRS won’t guarantee the date of any refund.  But, they do have a general cycle.  For most returns, if it is filed between Friday and the next Thursday, an electronic direct deposit will be sent on the Friday of the next week.  For example, if you file your taxes between Friday, Jan. 15 and Thursday, Jan. 21 the direct deposit will be sent on Friday, Jan. 29.  If you have opted to have a paper check mailed, however, the check won’t be processed and mailed until a week later.  In our example, that date would be Friday, Feb. 5.  So, the quickest way to receive your refund is to opt for direct deposit when you file.