With tax season in full swing, some people are already thinking of their tax refund. That’s why today we debunk the most common myth about tax refunds and share some other important considerations you should keep in mind.
The Most Common Myth About Tax Refunds, Debunked
One of the most common misconceptions about tax refunds is that if you receive a tax refund this year, that means you don’t have to adjust your withholding for 2021. This is false.
The truth is that it’s important to make adjustments now to avoid mistakes on your return next year.
One of the most important things you should do from a tax standpoint is to adjust your tax withholding with your employer. You can do this easily using the Online Tax Withholding Estimator. This simple verification will help you determine whether your employer is withholding the right amount of tax.
Other Important Considerations
Don’t forget to adjust your withholding if you get married, get a divorce, have a child, or adopt. All these life events impact your taxes.
In some cases, your refund may be smaller than expected. This may happen for a variety of reasons. For example, you may have made a math errors, or you may owe taxes from past years o other federal non-tax obligations such as student loans and child support.
Contrary to what many people believe, actions like calling the IRS or ordering a tax transcript won’t help you get a more accurate date for your tax refund. If you want to check the status and date of your refund, the only reliable source is the online tool Where’s My Refund.
Need Help With Your Taxes? Contact the Experts at JT Tax Services
Do you need help filing your 2020 tax return? Do you want to learn more about Economic Impact Payments? At JT Tax Services, we give you the peace of mind that comes with knowing that you are limiting your liability while staying compliant with all regulations.
We are located in Oxnard, California. Contact us today by email (firstname.lastname@example.org), telephone (805-984-8890), or through our social media accounts on Facebook, Twitter, and LinkedIn to schedule a consultation or to learn more about our services.