| A large tax refund should be a reminder to all | | | | form. More specifically, review your tax exemptions. |
| taxpayers that they gave the IRS a big loan during the | | | | But, also make sure you don't claim too many tax |
| year. Let me explain with an example below. | | | | exemptions as you will owe money back to the IRS at |
| Large Tax Refund Example | | | | the end of the year which isn't fun either. |
| If you claim too few exemptions when you completed | | | | Getting My Tax Refund Quicker |
| your W-4 form and have been receiving a bi-weekly | | | | If you are already going to be getting a tax refund and |
| paycheck of $2,000 when you could be receiving | | | | are very worried about when you will receive it; your |
| $2,100 then you have given the IRS $100 every two | | | | best option is to file taxes electronically (e-file). |
| weeks or $2,400 during the year. Yes, the IRS returns | | | | Generally speaking, you will receive your tax refund in |
| the $2,400 in the form of a tax refund but think about | | | | about half the time as traditional paper filing or as fast |
| how much you lost in interest during the year by | | | | as 3 weeks after filing your return. With e-file there are |
| having too much money taken out of your paycheck. | | | | no delays with mail as all of your tax information is |
| You could have been paying down your credit card | | | | sent electronically. But, note that certain state tax |
| debt, allocating funds to your 401K, or saving up for | | | | refunds may take longer as several states are |
| your child's tuition & more. | | | | currently facing budget issues. |
| Be Proactive For Next Year - Update Your W4 Form | | | | Please note that you cannot file electronically if you |
| Don't repeat the same mistake next year. Contact | | | | are claiming the homebuyer tax credit as there is |
| your employer's payroll office and update your W4 | | | | paper documentation requirements for this credit. |