CARL WATTS & ASSOCIATES

May 18, 2015

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Waiting for Your Tax
Refund
Many people dread the tax time as well as the tax man, some of them for the simple reason that the whole process is getting more and more complicated every year. Everybody looks forward to a tax refund, though! And no surprise there, even if the reason you get a tax refund is that you paid too much tax during the year anyway. And, as they say, it is better to get a refund rather than to owe money, because in the latter case you might find yourself without sufficient funds to make the necessary payment.


So, after all that hustle and bustle, now that you know you’re getting a refund the question on everybody’s lips is: When will I get my refund?

First of all, you have three options for receiving your individual federal income tax refund:

  1. Direct deposit (electronic funds transfer) into a checking or savings account, including an IRA;

  2. Purchase of U.S. Series I Savings Bonds; or

  3. Paper check.

If you want your refund by direct deposit to only one account, you must complete lines 76b through 76d on your Form 1040. It is extremely important to enter the correct nine-digit routing number and the account number when selecting the direct deposit option. If the numbers do not pass the IRS validation check, the IRS will mail you a paper check. In addition, the account must be in your name. Some financial institutions/banks do not allow a joint refund to be deposited into an individual account, so if you are married and filed your return with the status married filing jointly, you should check with your bank to ensure your direct deposit will be accepted.

If you choose to receive your refund by direct deposit and want to split the refund between two or more accounts, you can request that the refund be deposited in up to three separate accounts, such as checking, savings, or retirement accounts – just complete Form 8888, Allocation of Refund (Including Savings Bond Purchases). However, if you file Form 8379, Injured Spouse Allocation, you cannot have your refund direct-deposited into more than one account.

Please note that to receive your refund by direct deposit (whether into one account or more), the total refund amount must be $1.00 or more.

In an effort to combat fraud and identity theft, the IRS also urges you to not request a deposit of any part of your refund to an account that is not in your name. Do not allow your tax preparer to deposit any part of your refund into his or her account. The number of direct deposits to a single account or prepaid debit card is limited to three refunds a year. After this limit is exceeded, paper checks will be sent instead.

You can use Where’s My Refund? to start checking on the status of your return within 24 hours after the IRS have received your e-filed return or 4 weeks after you mail a paper return. Where’s My Refund? has a tracker that displays progress through 3 stages: (1) Return Received, (2) Refund Approved and (3) Refund Sent.

You will get personalized refund information based on the processing of your tax return. The tool will provide an actual refund date as soon as the IRS processes your tax return and approves your refund.

Remember, most refunds will be issued in less than 21 days, and phone and walk-in representatives can research the status of your refund only if it’s been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. You will need a copy of your tax return handy so you can provide your social security number, your filing status and the exact whole dollar amount of your refund shown on your return.





You can also use IRS2Go, the IRS free mobile app, from an iPhone or Android device.

Both Where’s My Refund? and IRS2Go are updated once a day so you don’t need to check more often, and they are available 24 hours a day, 7 days a week.

If you prefer the phone to the computer, you may call the Refund Hotline at 800-829-1954.

Where’s My Refund? includes information for the most recent tax year filed in the current year and does not include information about amended returns. To check the status of an amended return use Where’s My Amended Return?

You can request the IRS to mail a paper check. If you file by mailing a paper tax return, the IRS generally will issue your refund check within six weeks from the date the IRS receives your return. If you file the return electronically, the IRS generally will issue your refund check within three weeks after the acknowledgement date.

If you prefer, you can buy Series I U.S. Savings Bonds with a portion or all of your federal tax refund for yourself or anyone. Series I bonds are low-risk bonds that grow in value for up to 30 years. While you own them they earn interest and protect you from inflation.

Here is some more information about using your federal refund to purchase savings bonds.

  • You may use a portion of your refund to purchase up to $5,000 in U.S. Series I Savings Bonds for yourself or anyone.

  • The total amount of saving bonds purchased must be in multiples of $50. Any portion of your refund not used to buy savings bonds will be deposited into another financial account – such as a checking or savings account or can be mailed to you as a paper check.
  • Paper bonds will be issued in your name or the name you designate as primary owner, co-owner or beneficiary. If you are married and filed a joint return, the bonds will be issued in yours and your spouse’s name. You can also designate a beneficiary or co-owner under this name registration option.
  • You will receive the U.S. savings bonds in the mail.
  • Buying bonds with your refund is easy, just select this option by filing Form 8888, Allocation of Refund (Including Savings Bond Purchases).
  • Form 8888 has step-by-step instructions on how to select this option and how to specify the amount of your refund you want to use to purchase savings bonds.

If you receive a refund to which you are not entitled, or an amount that is more than you expected, do not cash the check until you receive a notice that explains the difference; then follow the instructions on the notice.

However, if you receive a refund for a smaller amount than you expected, you may cash the check. If it is determined that you should have received more, you will later receive a check for the difference. You will also get a notice explaining the difference and should follow the instructions on that notice too.

In the event that your refund check is lost, stolen or destroyed, the IRS will help you in obtaining a replacement check.

You should also know that every tax season has some sort of delay or another, be it budget cuts, late lawmakers decisions, or new forms. This year, for instance, is the first tax season to include filing requirements for the new health insurance premium tax credit and the penalties for no health insurance

In any case, now that you know when to expect your tax refund, we wish you a happy after tax season!

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