US tax refund season is just around the corner and this blog will help you to know the common deposit methods of tax refund and under which circumstance you might receive a tax refund from the IRS. According to the Internal Revenue Service, 90% of the tax filers will normally receive it within 21 days of registration. One has to take care of submitting the right personal information, bank account details, and contact information. IRS app allows you to track your refund progress and the Refund information will stay on the website after 24 hours of acknowledging the registration.
Every year billions of US citizens submit request for tax refund from IRS and more than a half of them suffer from rejections. This blog will help you to learn that under which circumstance you might receive a tax refund from the IRS. Lets begin with some statistics. Last year, the tax refund amount was about $2,781 and this year it will certainly go a little higher. In 2018, the IRS transferred more than 111.8 million tax refunds.
Important: File up your tax refund for this year before April 15, 2020. After that, you will no longer be entertained for claiming the 2016 tax refund.
Tax refund from the IRS
A citizen pays a percentage of his hard-earned money to the revenue department and get its refund after few years. The accurate way to get your tax refund estimate is to plan and use the Tax Calculator . It will help you in deciding whether you are eligible to get tax refund this year or not. If yes, it will give an estimated date of getting a refund.
Bank deposit options for tax refund
The duration to submit the tax file return is maximum three years and during these time span, you are not subjected to any late-filing penalty.
You can directly receive your tax refund from the IRS in your bank account. In case you are not filing your tax return fees through eFile.com, the other option is to pay by credit cards. With credit card, you have to pay the processing bank fee which can cause a little inconvenience.
Below are few of the main and easy methods for receiving tax under all the circumstance that you might receive a tax refund from the IRS.
1. e-Collect Direct Bank Deposit
For this method, you should have a bank account, account number and bank routing number.The tax refund will be transferred by EPS Financial in the bank account you mentioned and the tax preparation will automatically be deducted from your refund amount. This is the most up-to-date and effective approach for getting tax refund from the IRS.
2. IRS Direct Bank Deposit
Just like e-Collect Direct Bank method, you must own a back account, account number, and routing number. In this, you must own a credit card to pay your tax preparation fees. During the eFile.com online tax return process, your refund amount will be automatically transferred to your account from the IRS (U.S. Treasury). This transfer will be free of cost. On entering incorrect bank account number, you will get a check in the mail by IRS. Another most recommendable and used method by US citizens. You only have to pay the one time tax preparation fees by credit card.
Caution: Few of the banks reject the request of joint tax filers. Beforehand, check the status of your bank if they are accepting the tax deposit of a joint refund into an individual’s account.
3. IRS Check in the Mail
In case if someone does not own a bank account or wishes to receive the tax refund in the mail by U.S. Postal Mail, then this option is the most feasible one. Click on this option when registering on the eFile.com tax app. Once your details are analysed and approved, you will receive a confirmation through a paper check by US portal service. When compared with the above two methods, this is a time-consuming approach. Make sure you enter correct details about address and personal details so that IRS wont reject your request. For more help, you can call 1-800-829-1040 to verify your mailing address.
Important: As a US citizen, you need to provide updated information such as local address, contact number, email address to the State Department’s Office of American Citizens Services.
Are there any late tax return filing penalties?
By law, IRS charge penalties for late filing of tax refund if you submit any incorrect details or crosses the deadline. To save yourself from incorrect tax estimations, you may use the free tax calculator and calculate your tax refund.
- You might owe a penalty for crossing the tax deadline or have not paid the taxes yet.
- The penalty for late filing is usually 5% of the unpaid taxes.
- For any reasonable and genuine cause of registering the tax refund, you might get exempted from penalty.
This information will certainly help people who are confused that under which circumstances you might receive a tax refund from the IRS. Few of your concerns regarding the circumstance that you might receive a tax refund from the IRS are answered. Let us know in the comments if we helped you in the right way.