A tax return and a tax refund. They sound similar and sometimes go together, but they’re not the same things. And this year, there are more nuances than ever, as a result of the, the and for . So what’s the difference between the two and what are the biggest changes you need to know about?
is ongoing, and with , you may have questions. We’ll explain the details of each term below and everything you need to know about how tax refunds are different this year and how to find out if you’re getting one. Also, once you file your tax return, here’s how you can .
What is a tax return?
A tax return is a form you file each year with the IRS that details your, expenses and other financial information. Most of these details comes from your W-2 statement that your workplace provides you weeks in advance to file your taxes, but you might also have a 1099 or other form for recording your income.
Your tax return will include your gross income (which is different from your AGI), how much you’ve already paid into taxes (through your company’s withholding or estimated taxes that you prepaid if you’re self-employed) and other important information you’ll need to file your taxes.
However, the tax return will also balance deductions for your kids, as well as how much you paid ininterest, healthcare coverage, Roth IRA contributions, home office expenses, business expenses, charitable donations and more.
You must file a tax return in order to get a refund. However, just because you file a return doesn’t mean you’ll get a tax refund.
What is a tax refund?
A tax refund is what’s issued to you by the US Treasury if, in the previous year, you paid more in state or federal taxes than you needed to. For example, maybe your workplace withheld more money than was actually needed from your paycheck, or you’re self-employed and wound up overpaying quarterly estimated taxes.
The government will reimburse you, or “return,” the difference between what you paid and what you owed as a lump sum payment; in other words, your tax return. Also, any deductions on your taxes (see above) can also add to the amount you can expect to receive. Here’s how to.
What’s different about tax refunds now?
For one, the, not April 15 — and that could , which might mean you have to , which could mean a larger refund in 2022. The IRS may also send you a second refund in 2021 .
For your 2020 taxes (the ones you file in 2021), any IRS doesn’t consider it income.you claim from the first or could also be included in your tax refund. To get that money, you’ll have to on your tax return. Also, if you received a stimulus check last year, or refunded less because the
could also help you receive more money on your tax refund this year and next by giving up to . Here’s what to know about when the .
Otherinclude the standard deduction for single filers ($12,400) and married joint filers ($24,800) and deductions of up to $300 to qualifying charities.
How will I know if I get a tax refund?
If you use, you’ll see a final estimate of how much you should receive after you file your tax return (including if you self-prepare). Once the IRS receives your return, they’ll send you an email or a text message letting you know your final refund amount.
Then, after they accept your refund, that means your money is on the way to youror mailbox. You can from the time you file your taxes until you receive your payment. Note that it can take anywhere from , assuming there are no errors found on your tax return.
For more tax information about your 2020 taxes, here’s the, seven and what to know about .