All governments are funded, at least in part, by some form of taxation on their citizens. Most of these taxes are collected after you sell or buy something, but others are collected at the end of a 12-month period. One such yearly levy is the oft-dreaded income tax – that annual bill from the federal and state government for what you earned throughout the year.
By law, it’s your employer’s job to deduct a certain percentage of money from each paycheck for tax purposes. Federal and state income taxes are taken out based on the amount of money you make, your marital status, and who you claim as a dependent. Other deductions are also made from your paycheck to cover Social Security benefits, insurance premiums (through your employer), and any other contributions you make to personal retirement or savings accounts like a 401(k). However, if the amount withheld by your payroll department is higher than the amount of income tax you actually owe the government, the government will issue you a tax refund.
So, how do you figure out if you’re owed a refund? What’s the best way to get your money back? These are all good questions, and while you can certainly prepare your own taxes to determine your refund amount, using a tax preparer is one of the fastest, easiest ways to reduce your tax season stress.
A good tax professional can help you get the most out of your tax return. Tax professionals are experts on tax credits and deductions, and can help you get the maximum refund you’re entitled to by law. If you need the amount of your tax refund quickly, many tax preparers can also offer you a 12-24 hour Advanced Refund Anticipation Loan (ARAL) based on the amount of your refund, an Electronic Tax Refund Check (ERC) in the amount of your refund in 10-16 days, or an IRS Direct Check deposited into your bank account or sent to your home in 10-21 days.
Whether it’s online, through the mail, or over phone, using an income tax preparation company is a smart way to work through your tax refund. Just remember to choose carefully and pay attention to the details! Ultimately, you’re responsible for what’s on your tax return. Some companies, like Instant Tax Service, even offer service guarantees.
There are a lot of ways to get your tax refund – so be sure to choose the best way for you.
This entry was posted on Thursday, January 22nd, 2009 at 8:22 AM and is filed under Tax News. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.
