Tax forms and tax software had to be updated after the season started to reflect the change. Tax returns and tax refunds are complicated by real life situations — grandparents raising grandchildren, people facing sizable drops in income during the pandemic, divorces that can complicate who claims a child as a dependent, newborns in The IRS said in early April that mistakes are being made with the recovery rebate credit, which is a new credit on returns.
The IRS is mailing letters to some taxpayers who claimed the recovery rebate credit and may be getting a different amount than they expected. The IRS issued 2. That was What's complicating the delays, of course, is that many people can't get answers about what's holding up their money.
Alexandria Gale — who once spent 45 minutes on the phone to the IRS, where no one answered her call — said she doesn't know why her tax refund is delayed.
She hasn't received any letters from the IRS. Gale, 26, and her husband, Phillip Caudle, 24, welcomed the birth of their daughter, Willow, in Gale works for United Wholesale Mortgage in Pontiac. Caudle works for Coca-Cola as a sales rep. She used TurboTax to file their federal income tax return electronically on March 4.
More: Big money awaits many who forgot to file tax returns. More: New rule helps those who lost jobs in qualify for key tax credits. More: IRS still hasn't processed millions of tax returns. And this year, they claimed the recovery rebate credit in order to receive stimulus cash for their daughter. If a child was born or adopted in , you could end up with an extra stimulus payment for your new dependent.
They can result in tax due, or a change in the amount of the refund -- either more or less. If you disagree with the amount, you can try contacting the IRS to review your account with a representative. The IRS received million calls this tax season , which is four times the number of calls in And based on the recent report, only 7 percent of calls reached a telephone agent for help.
While you could try calling the IRS to check your status, the agency's live phone assistance is extremely limited right now because the IRS says it's working hard to get through the backlog. You shouldn't file a second tax return or contact the IRS about the status of your return. It also advises taxpayers to get in-person help at Taxpayer Assistance Centers.
You can contact your local IRS office or call to make an appointment: You can also contact the Taxpayer Advocate Service if you're eligible for assistance by calling them: Though the chances of getting live assistance are slim, the IRS says you should only call the agency directly if it's been 21 days or more since you filed your taxes online, or if the Where's My Refund tool tells you to contact the IRS.
You can call: or during regular business hours. The code simply identifies the transaction as a refund from a filed tax return in the form of an electronic payment direct deposit. This would also apply to those receiving an automatic adjustment on their tax return or a refund due to March legislation on tax-free unemployment benefits.
If you see a instead of , it means your refund has been offset for delinquent debt. There are a couple of reasons that your refund would be mailed to you. Your money can only be electronically deposited into a bank account with your name, your spouse's name or a joint account.
If that's not the reason, you may be getting multiple refund checks, and the IRS can only direct deposit up to three refunds to one account. Additional refunds must be mailed. In some cases, you may need to hang onto your records longer than three years. For instance, you should plan on keeping tax forms for retirement accounts such as IRAs until seven years after the account is completely wiped out.
If you file a claim for a loss of worthless securities or bad debt deduction, you must keep records for seven years. Additionally, if you amortize, depreciate, or buy or sell property, you should keep property records until the statute of limitations expires for the year in which you dispose of the property. Before getting too excited and throwing your old returns away, check to make sure you do not need to keep it for other purposes.
For instance, certain creditors and even some insurance companies may require you to keep records longer than the IRS does.
If you do decide to get rid of tax documents, make sure to shred them. Tax returns contain sensitive information that identity thieves love. The best way to store hard copies of tax documents is in a fire-proof safe. Along with your tax records you can keep other important documents like the deed to your house, mortgage and insurance information, your will or trust documents, and passwords to bank and brokerage accounts.
It could take several weeks before you receive a mailed refund check. No, not always. Sometimes, when we are still reviewing your return, instead, it will display instructions or an explanation of what we are doing. All or part of your refund may have been used offset to pay off past-due federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or other federal nontax debts, such as student loans. To find out if you may have an offset or if you have questions about an offset, contact the agency to which you owe the debt.
We also may have changed your refund amount because we made changes to your tax return. This may include corrections to any incorrect Recovery Rebate Credit amount.
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