We're in the middle of the first quarter of the year, which means one of the things you're likely thinking about a lot is getting your taxes filed. And after you finish filing your taxes, you'll probably want to know when to expect your refund this 2018 season.
Understanding the Filing Process
To fully answer this question, let's add a little context. This year, the IRS announced that their first official acceptance date was 1/29. That date was for e-File applications. Not that long ago, the only way to file taxes was by mailing in a return. Then once the IRS received your return, a computer had to scan in all the information. Going even further back, the entry was done manually by an office worker.
Once the return was entered and confirmed, the IRS could mail a refund check back. If that sounds like a long and convoluted process, it's exactly what it was. Fortunately, e-filing has completely changed things. Not only can all tax return information be filed online, but there's now an option for a refund direct deposit.
Factors That Affect Getting Your Refund in 2018
For filers who go with the direct deposit option, it can take as little as eight days to get a refund. Just keep in mind that's if everything is exactly in line and there aren't any credits claimed that require extra time to confirm. The official estimate the IRS gives for receiving a refund is twenty-one days.
There are two main credits that require a hold by the IRS. Those are the EITC and ACTC. Anyone who claimed either credit and filed before 2/15 had their refund held until that date. Most likely, it wasn't released until 2/27.
One thing to keep in mind about filing taxes on your own with the use of the software is even though they may claim to let you submit early, your return isn't actually filed with the IRS until the first date of acceptance, which as previously mentioned was 1/29 this year.
The other issue with using software to file your own taxes is it only takes a single mistake for your return to be automatically rejected by IRS filters and sent back to you. When this happens, a filer has to dig through their return, find their mistake and submit again. That can easily delay how long it takes to get a refund.
If you want to work with an experienced and affordable professional to get your taxes filed as soon as possible, we're here to help. We provide an instant $50 check when you file with us. And we can also provide a refund advance of up to $2500. For more information, give us a call in Anderson at (513) 832-0026 or in Georgetown at (937) 378-3111. You can always visit Alpha Tax online too!
Since 1975, the Earned Income Tax Credit has been providing American families with a federal subsidy designed to alleviate the burden of taxation and to encourage taxpayers to remain employed throughout the year. This benefit has been expanded over the last few decades as a way to provide some level of economic relief for low-income and middle class workers. This credit is interchangeably referred to as EIC or EITC.
In essence, the EITC allows qualified taxpayers to get back a fixed percentage of their annual income. Families with more than one child stand to get higher EITC amounts. Low-income taxpayers who do not have children or dependents may also qualify for the EITC, although the amount will be considerably lower. The EITC is paid through the refund indicated on an annual tax return.
The EITC is not determined by federal poverty guidelines. Instead, it's calculated by income levels and by the size of the taxpayer's family. The minimum age is 25 and the maximum age is 65. All income earners and dependents must have valid Social Security numbers. The EITC can be taken by taxpayers filing jointly or individually. The choice of filing should be left to accountants and tax preparation professionals.
As an example, let's say a married couple with three children produces an annual household income that is less than $53,000. the maximum EITC amount this family could receive would be $6,629. Individual workers who earn less than $14,880 per year would receive no more than $506. It is important to note that the EITC is a benefit and not a deduction.
Self-employed professionals and income earners who do not have a 9 to 5 job may still qualify to receive the EITC. To this effect, construction workers who are independent contractors and are paid by means of 1099 forms may still be eligible.
Investment income does not automatically preclude taxpayers from getting the EITC. An office worker, for example, may receive stock options from her employer as a performance bonus. Even if she exercises those options, she may still be eligible as long as her profit was not higher than $3,400 by the time she files her tax return.
Receiving child support, Social Security or early retirement income could render taxpayers ineligible to take the EITC. The same goes for unemployment benefits since the goal of this tax credit is to reward workers. Imprisoned workers do not qualify for the EITC.
In the end, the EITC is a benefit that low-income and middle class taxpayers should explore, particularly if they have children. In terms of determining eligibility and the EITC amount that can be taken, this credit can be as difficult to calculate as itemized deductions or depreciation. For this reason, taxpayers should let a tax preparation professional handle the preparation of their annual return.
As we covered in our previous post on some tax refunds being delayed until 2/15, a change implemented by Congress means that anyone who claims the Earned Income Tax Credit or Additional Child Tax Credit is going to have to wait longer than usual to receive their refund. This extra window of time will be used by the IRS to help combat the growing problem of fraudulent returns.
And even for filers who don't claim either of those credits, it can take a full three weeks before returns are processed and refunds issued. If you would like to receive money from your refund in much less time, an advance loan can be the perfect solution.
There are several significant benefits associated with this type of loan. The first is the fact that you don't have to wait for your refund to arrive. Even if you aren't claiming the EITC or Additional Child Tax Credit, it can still take up to three weeks to get your refund from the IRS. This type of loan means you can get going right away with the plans you have for that money.
Another benefit of this option is it's quite convenient. Unlike other loans that can require you to fill out a ton of paperwork, this one is based off your tax return, which means there's no extra work for you to do.
Finally, getting this type of advance loan is simple. As long as you work with a reputable tax preparer, you won't have to worry about figuring out any complicated tax issues on your own. Instead, the preparer will walk you through this straightforward process and get your refund money to you in the form of an advance loan.
With over two decades of industry experience and relationships, we understand how hard people in Cincinnati work for their money. That's one of the reasons Alpha Tax is committed to making taxes as easy as possible on our clients.
In addition to the quality of our tax preparation service, one of the ways we help to make things easy is by offering advance loans. if you sign up to do your return with us, you'll receive $50 immediately. We can also provide up to a $1200 refund advance in as little as one hour once your return is filed. The IRS starts accepting returns on 1/23/17, so don't miss out on your chance to get ahead of the curve. If you have any questions about our tax preparation service or advance loans, don't hesitate to give us a call at 513-528-9100.