I’ve heard no less than two anguished stories from two people I know in the past week who are steaming over not getting tax refunds.
Ensuring that your federal tax return gets to the IRS and you receive a refund — if you’re owed one — is a matter of following a simple process. Here are five easy steps the IRS recommends:
* Get Your Docs in One Place. Taxpayers should gather all documents, such as Forms W-2 and 1099, and any documents to support tax deductions or credits like education credits or mortgage interest payments.
* File electronically. You can file tax returns electronically through IRS Free File or other e-file service providers. Electronic filing helps reduce math errors and identifies potential tax credits or deductions the taxpayer may be eligible to claim. Taxpayers should always review their tax return for accuracy. Filing electronically and choosing direct deposit is the fastest and most secure way to receive a refund.
* Use the correct filing status. Tax software, including IRS Free File, also helps prevent mistakes when selecting a tax return filing status. Unsure off your filing status? The IRS Interactive Tax Assistant on IRS.gov can help you choose the correct status, especially if more than one filing status applies.
*Double-check name, birth date and Social Security number. Taxpayers must correctly list the name, date of birth and Social Security number for each person they claim as a dependent on their individual income tax return. Enter each SSN and individual’s name on a tax return exactly as printed on the Social Security card. If a dependent or spouse does not have a SSN and is not eligible to get one, list the Individual Tax Identification Number (ITIN) instead of a SSN.
Note: One year the IRS didn’t have the correct name of my wife, which messed us up for several months. Filling out all documents is essential.
* Report all taxable income. Under-reporting income may lead to penalties and interest. This includes unemployment income, interest received and income from the gig economy, service industry and digital assets. See Publication 525 for more information.
One last tip is a no-brainer. If you’re due a refund, choose the direct deposit option. You can request direct deposit of a federal refund into one, two or even three accounts.
Make sure the bank routing and account numbers entered on the return are accurate. Incorrect numbers can cause a refund to be delayed or deposited into the wrong account. Also check your payroll withholding taxes to ensure that your employer is taking out the correct amount of taxes.
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