Tax refunds have become an important source of income for many American taxpayers. Therefore, it is of vital importance that they know the approximate amount they would get and when.
Setting your monthly budget can help you save money and not rely so much on tax refunds. Some taxpayers will get a much lower cheque according to the Internal Revenue Service -IRS.
According to the IRS, there are more than 26 million tax returns processed. Despite the fact that it only started about a month ago, January 23, 2023, millions of taxpayers tried to sort it out as soon as possible.
When will taxpayers collect their tax refund once they have filed it?
This will depend on the way you filed your tax return. For those taxpayers who file electronically and ask for a direct deposit, they will get their tax refund within 21 days.
Nevertheless, this is just for those who have no issues with their tax returns. Bear in mind that if your tax return is not accurate or there is some missing information, the IRS will take longer in order to check it and send your tax refund.
February 28 will be the date for those taxpayers who claim the Additional Child Tax Credit or even the Earned Income Tax Credit. That is when they will get their tax refunds to comply with the law.
When is the deadline to file your tax return?
April 18, 2023, is the deadline for most states. However, there are some exceptions. Take for example those victims of disasters in Georgia, California, and Alabama. So their tax refunds will take longer.
Those three states will have May 15 as their deadline for those affected by severe storms. Do not forget that if you are a member of the military overseas and you are taking part in a contingency operation you may get extra time to file.
Those who need an extension cannot forget to pay the taxes that are due so that they avoid penalties. Otherwise, you might regret it and you will not be able to keep saving that money for retirement. File on time to get your tax refund quickly and forget about it until next year.