A tax refund is money given back to people who paid too much in taxes, usually because their employers took too much out of their paychecks. The U.S. Treasury says that nearly three-quarters of taxpayers have too much money taken out of their paychecks, which means they get tax refunds. When you pay too much in taxes, it's like giving the government a loan with no interest.
Why Do I Get a Tax Refund?
Most employers have to take taxes out of their employees' pay every time they pay them. When the amount taken out of an employee's pay throughout the year is more than what they actually owe, they get a tax refund.
Withholding tables tell employers how much tax to take out of an employee's paycheck and send to the Internal Revenue Service (IRS).
Employees help with this process by filling out form W-4, where they list their filing status, number of dependents, tax deductions, and other information that can affect how much they have to pay in taxes. The amount of taxes taken out depends on how often you get paid, what your W-4 form says, and how much you make. When figuring out how much they will owe at the end of the year, employees can also fine-tune how much to withhold.
This could mean one of three things when filing taxes:
Accurate withholding—the amount withheld from the employee’s paychecks matches the amount they owe in taxes, so they do not receive a refund or owe taxes when they file.
Underwithholding—the amount withheld from the employee’s paychecks was not enough to pay the amount they owe in taxes, so they have a balance due when they file. That potentially can led to penalties for underpayment, depending on the amount owed.
Overwithholding—the amount withheld from the employee’s paychecks exceeds the amount they owe in taxes, so they receive a refund (without interest) when they file.
Don’t Judge Your Tax Burden by Your Refund
No matter if a person overwithholds or underwithholds, getting a tax refund or owing the IRS is not the best way to figure out how much income tax they have to pay.
Instead, taxpayers can look at their Form 1040 to see how much total income tax was paid and then compare that amount to how much they made in the year to figure out their effective income tax rate.
If a person wants their withholding to be more accurate, they can use the IRS Tax Withholding Estimator tool and have their employer update their form W-4.
Overpaying Your Taxes: An Interest-free Loan to the Government?
Some taxpayers even use their tax refunds as a way to save money, but taxpayers would be better off if they didn't overpay their taxes in the first place.
When you overpay your taxes, it's like giving the government a loan with no interest.
Instead of waiting for a refund, taxpayers should change their withholding to match the taxes they owe and invest the amount they would have gotten back in interest-earning savings accounts or investment accounts like a 401(k) (k).
Get information about tax refunds and track the status of your e-file or paper tax return.
Where’s My Refund? now provides refund information for the 2021, 2020, and 2019 tax years. You should still view your Online Account to see your payment history, prior year adjusted gross income (AGI), or other tax records.
24 hours after e-filing a tax year 2021 return
3 or 4 days after e-filing a tax year 2019 or 2020 return
If you filed on paper, it could take 6 months or more
Updates are made daily, usually overnight
It's taking us more than 21 days (and up to 120 days) to issue refunds for tax returns with the Recovery Rebate Credit, Earned Income Tax Credit and Additional Child Tax Credit.
Find out if the IRS received your tax return and check the status of your refund. Learn why your tax refund could be lower than you expected.
Use the Where's My Refund tool or the IRS2Go mobile app to check your refund online. This is the fastest and easiest way to track your refund. The systems are updated once every 24 hours.
You can call the IRS to check on the status of your refund. However, IRS live phone a-sistance is extremely limited at this time. Wait times to speak with a representative can be long. But you can avoid the wait by using the automated phone system. Follow the message prompts when you call.
Refunds are generally issued within 21 days of when you electronically filed your tax return or 42 days of when you filed paper returns. If it’s been longer, find out why your refund may be delayed or may not be the amount you expected.
You can file your tax return by mail, through an e-filing website or software, or by using the services of a tax preparer. Whether you owe taxes or you’re expecting a refund, you can find out your tax return’s status by:
If you file your taxes by mail, you can track your tax return and get a confirmation when the IRS has received it. To do so, use USPS Certified Mail or another mail service that has tracking or delivery confirmation services.
A tax refund is a state or federal reimbursement to a taxpayer who overpaid their taxes, often by having too much withheld from their paychecks.
A tax refund is a reimbursement to a taxpayer for any excess amount paid to the federal government or a state government. While taxpayers tend to look at a refund as a bonus or a stroke of luck, it often represents what is essentially an interest-free loan that the taxpayer made to the government. It’s often possible to avoid overpaying your taxes so you can keep more money in your pocket each paycheck—and avoid a refund when you file your tax return.
You may also receive a refund if you qualify for a refundable tax credit, such as the Earned Income Tax Credit (EITC), premium tax credit (PTC), or Child Tax Credit (CTC).
It can be exciting to get a large tax refund. Still, taxpayers are generally better off not overpaying their taxes in the first place because that money could be put to better use. For example, you could adjust your withholding (or estimated quarterly taxes, if you’re self-employed) and invest that “extra” money in your individual retirement account (IRA), 401(k), or even an interest-yielding savings account. That way, the money is working for you instead of for the federal government.
To avoid overpaying, you must fill out your W-4 correctly and update it if you experience a significant life change, such as marriage, divorce, adoption, a new freelance job or gig, or the birth of a child.
The taxpayer is eligible for refundable tax credits, which can reduce the amount of taxes owed below $0, even if no tax was otherwise owed. If the credit is larger than your tax bill, you will receive a refund for the difference.
If you filed your tax return on time and still haven't gotten your refund, at least it's earning interest.
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If you filed your tax return electronically and were due a refund, you probably already received it. The IRS reported that it's processed 97% of the more than 145 million returns it received this year and issued a few more than 96 million refunds.
Taxpayers get tax refunds when they overpay federal or state taxes. Find out how tax refunds work, and use these tips to prepare for your next tax season.
Tax season can be stressful. But for many taxpayers, there is a light at the end of the tunnel in the form of a tax refund. Indeed, many people even depend on their annual refund, using the windfall for everything from saving for retirement to working with a financial advisor to invest the money. If you’ve ever had serious questions about how tax refunds work, we’ll fill you in on what you might not know.
Tax refunds usually call for a celebration. But in reality, they often mean that you made a mistake by paying more income tax than was necessary. Federal or state governments will refund the excess money that you paid out to them. You can avoid overpaying by filling out employee tax forms correctly and estimating or updating deductions with greater accuracy.
There are different reasons why taxpayers get refunds, and in other cases owe money to the government. If you work for an employer, you were required to fill out a W-4 form when you were hired. On that form, you indicated the amount of taxes that needed to be withheld from each paycheck.
Taxpayers receive a refund at the end of the year when they have too much money withheld. If you’re self-employed, you get a tax refund when you overpay your estimated taxes. While you might consider this extra income to be free money, it’s actually more like a loan that you made to the IRS without charging interest. Conversely, you will owe the government money if you underestimate the amount to taxes.
While taxpayers usually forfeit their tax credits when they owe nothing, you may qualify for a tax refund. Here are the four biggest tax credits that could end up proving you with a refund:
The fastest way to get your refund is to file electronically and request a direct deposit. Paper returns take longer. Here's the 2022 refund schedule.
If you’re like most people, you dread tax season. But if you’re expecting a tax refund, you may have something to look forward to. Most people will get their tax refund within three weeks of filing, but it varies based on how you file and how you get your refund. If there’s extra money coming your way from the IRS, you may be able to pay off some debt, build an emergency fund using a high-interest savings account or work with a financial advisor to set investing and retirement goals.
Most taxpayers receive their refunds within 21 days of filing. If you choose to have your refund deposited directly into your account, you may have to wait five days before you can gain access to it. If you decide to request a refund check, you might have to wait a few weeks for it to arrive. The table below will give you an idea of how long you’ll wait, from the time you file, until you get your refund.
Estimated Federal Tax Refund Schedule Filing Method E-File, Direct Deposit Paper File, Direct Deposit E-File, Check in Mail Paper File, Check in Mail Time from the day you file until you receive your refund 1-3 weeks 3 weeks 1 month 2 months
Note that these are just estimations. Based on how you file, most filers can generally expect to receive a refund within these time frames. On average, filers receive their refunds two weeks after their taxes were accepted by the IRS for direct deposits and three weeks after e-filing for a paper check in the mail. However, you may end up waiting longer in some cases.
The Where’s My Refund? tool lets you check the status of your refund through the IRS website or the IRS2Go mobile app. If you submit your tax return electronically, you can check the status of your refund within 24 hours. But if you mail your tax return, you’ll need to wait at least four weeks before you can receive any information about your tax refund. Keep in mind that usually, you can file your taxes in January.
[i] To receive your payment, you must have filed a complete 2020 tax return by October 15, 2021. However, if you applied for an Individual Taxpayer Identification Number (ITIN) but did not receive it by October 15, 2021, you must have filed your complete 2020 tax return on or before February 15, 2022. ↵Return to place in article
Direct deposit MCTR payments for Californians who received Golden State Stimulus (GSS) I or II are expected to be issued to bank accounts from October 7, 2022 through October 25, 2022, with the remaining direct deposits occurring between October 28, 2022 and November 14, 2022. We expect about 90% of direct deposits will be issued in October 2022.
MCTR debit cards are expected to be mailed between October 25, 2022 and December 10, 2022 for Californians who received GSS I and II, with the remaining MCTR debit cards mailed by January 15, 2023.
Generally, direct deposit payments will be made to eligible taxpayers who e-filed their 2020 CA tax return and received their CA tax refund by direct deposit. MCTR debit card payments will be mailed to the remaining eligible taxpayers.
Married/RDP filing jointly
CA AGI reported on your 2020 tax return
Payment with dependent
Payment without dependent
$150,000 or less
$1,050
$700
$150,001 to $250,000
$750
$500
$250,001 to $500,000
$600
$400
$500,001 or more
Not qualified
Not qualified
Head of Household or qualifying widow(er)
CA AGI reported on your 2020 tax return
Payment with dependent
Payment without dependent
$150,000 or less
$700
$350
$150,001 to $250,000
$500
$250
$250,001 to $500,000
$400
$200
$500,001 or more
Not qualified
Not qualified
Single or Married/RDP filing separately
CA AGI reported on your 2020 tax return
Payment with dependent
Payment without dependent
$75,000 or less
$700
$350
$75,001 to $125,000
$500
$250
$125,001 to $250,000
$400
$200
$250,001 or more
Not qualified
Not qualified
Employee Tax Refunds – Get Up To $26,000 Refund For Your Business
The ERTC was established by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, and provides a credit equal to 50 percent of qualified wages and health plan expenses paid after March 12, 2020 and before Jan. 1, 2021.
A per-employee $10,000 maximum of qualified 2021 wages (Q1, Q2, Q3).
That is a potential of up to $21,000 per employee!
While the ERTC was created in the CARES act along with the PPP Loans - this is not a loan, there is no repayment.
There are no restrictions for what recipients of the credit must use the funds.
The 2020 ERC Program is a refundable tax credit of 50% of up to $10,000 in wages paid per employee from 3/12/20-12/31/20 by an eligible employer.
That is a potential of up to $5,000 per employee.
In 2021 the ERC increased to 70% of up to $10,000 in wages paid per employee per quarter for Q1, Q2, and Q3.
That is a potential of up to $21,000 per employee.
Startups eligible for up to $33,000.
By answering a few, simple, non-invasive questions our team of ERTC experts can determine if you likely qualify for a no-strings-attached tax credit.
There is no cost or obligation to be pre-qualified.
The Coronavirus Aid, Relief, and Economic Security Act (also known as the CARES Act) was signed into law on March 27, 2020. It included two programs to a-sist businesses with keeping workers employed: the Payroll Protection Program (PPP) administered by the Small Business Adminstration and Employee Retention Tax Credit (ERTC) administered by the Internal Revenue Service.
Locating a refund - If you filed a tax return and are expecting a refund from the IRS, you may want to find out the status of the refund.
If you filed a tax return and are expecting a refund from the IRS, you may want to find out the status of the refund, or at least get an idea of when you might receive it. The IRS issues most refunds in 21 calendar days. You can check the status of your refund with the “Where’s My Refund?” tool or the IRS2Go mobile app.
The Protecting Americans From Tax Hikes (PATH) Act made the following changes, which became effective for the 2017 filing season, to help prevent revenue loss due to identity theft and refund fraud related to fabricated wages and withholdings:
The IRS may not issue a credit or refund to you before February 15, if you claim the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) on your tax return.
Did you file an amended return? Refund information won’t be available online, whether you filed your tax return electronically or on paper. Call the IRS at 800-829-1040 (TTY/TDD 800-829-4059.) You can, however, check the status of your amended tax return with Where’s My Amended Return? on IRS.gov. It should generally be available three weeks after you mail the amended tax return to the IRS.
There are steps you can take to determine which of the above reasons is most likely — the I don’t have my refund common situation will take you through the possibilities.
The IRS, in general, processes refunds in approximately 21 days, if you filed electronically, and six weeks if you filed a paper tax return. However, there are several things that could delay or stop you from receiving the refund, in full or in part. Below are some of the main reasons you may not have received your refund yet, and tools to help you find out the status of it, along with self-help information to a-sist you should you need it.
Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC): If you claimed the EITC or the ACTC, and there are no errors, you should receive your refund, if you selected Direct Deposit around the first week of March. However, if there are problems with any of the information related to the claim, your refund will be held, and you will be asked to supply more information. If you receive an IRS letter or notice about your claim, reply immediately following the steps outlined and using the contact information provided.
Identity Theft: Tax-related identity theft happens when someone steals your personal information to commit tax fraud. The IRS has specific programming to review tax returns to identify instances of possible identity theft, which can also cause a delay in issuing a refund.
If this is the case, you should receive IRS letter 5071c requesting you to contact the IRS Identity Verification telephone number provided in the letter or take other steps. The right ones for you are based on what’s happening with your tax account, so follow the instructions in the correspondence.
Errors on or Incomplete Tax Returns: Your refund may be delayed for something as simple as a forgotten signature or because there is some other type of error, including mathematical errors or if the income reported by you doesn’t match what your employer or other third-party payers have reported. If this is the case, the IRS will send correspondence either asking for more information or letting you know your tax return was adjusted and why.
How to get your money back if you've paid too much Income Tax - tax refunds, tax rebates
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Estimate your tax refund with H&R Block’s free income tax calculator. It’s never been easier to calculate how much you may get back or owe with our tax estimator tool.
Answering a few questions about your life, income and expenses with our tax calculator will answer the questions we all want answers to: Will I get a refund or owe the IRS? How much?
Most Americans are required to pay federal income taxes, but the amount you owe depends on a few factors. We’ll use your info to estimate your filing status and taxable income, then answer the question “How much will I get back in taxes?”
We’ll calculate the difference on what you owe and what you’ve paid. If you’ve already paid more than what you will owe in taxes, you’ll likely receive a refund. If you paid less, you may owe a balance.
Our free tax calculator is a great way to learn about your tax situation and plan ahead. We can also help you understand some of the key factors that affect your tax return estimate.
If you’re claiming the Child Tax Credit or Recovery Rebate Credit on your 2021 taxes, be sure to have your IRS letter for each when you file. This way, you can report the correct amounts received and avoid potential delays to your refund. We’re here to help.
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New Jersey State Tax Refund Status Information
Taxpayers who have access to a Touch-tone phone may dial 1-800-323-4400 within New Jersey, New York, Pennsylvania, Delaware, and Maryland or 609-826-4400 anywhere to learn the status of their tax refund.
An automated script will lead you through the steps necessary to determine the amount of your tax refund. Taxpayers should have their social security number and amount of refund requested when making this call.
The Automated Refund Inquiry System provides more extensive information about the status of State tax refunds. Taxpayers can find out if and when their refund was mailed and when they should receive it. The system even allows taxpayers to begin the procedure to trace a lost refund check. This service is available 7 days a week (hours may vary).
Taxpayers not having access to a Touch-tone phone can obtain tax refund information by dialing the Taxation Customer Service Center at 609-292-6400 and speaking to a taxpayer service representative during normal business hours of 8:30 AM to 4:30 PM, Monday through Friday.
Visit New Jersey's online service to check the status of your tax refund.
New Jersey Online Refund Status
Before President-elect Donald Trump proposed it at the federal level, Alabama passed a law exempting overtime wages from taxes back in November 2023. Act 2023-421 (H.B. 217) excluded any amounts received by a full-time, hourly wage employee as compensation for work performed above 40 hours a week from state income taxes, starting January 1, 2024.
President-elect Trump has promised to impose steep new taxes on trade, including a 10-20 percent tariff on all imports, at least a 60 percent tariff on Chinese imports, and a 25-100 percent tariff on Mexican imports. At least a dozen estimates on Trump’s proposed tariffs show they will have a harmful effect on the American economy, supporting the standard view among economists that tariffs reduce trade and distort production, leading to lower standards of living.
The clear election victory for Republicans means they will retake the White House, Senate, and (by a slim margin) the House next year, putting them in the driver’s seat to determine the direction of tax reform. Republicans are likely to use a process called budget reconciliation, which allows for budget legislation to be passed out of the House and Senate via a simple majority.
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The Internal Revenue Service (IRS) changes more than 60 tax rules every year to account for inflation. This stops something called "bracket creep." People move into higher tax brackets or lose value from credits and benefits when inflation rises instead of their real income rising. This is called "bracket creep."
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Before President-elect Donald Trump proposed it at the federal level, Alabama passed a law exempting overtime wages from taxes back in November 2023. Act 2023-421 (H.B. 217) excluded any amounts received by a full-time, hourly wage employee as compensation for work performed above 40 hours a week from state income taxes, starting January 1, 2024.
