In truth, a tax refund is not a good thing. Yes, you read that correctly. How could it be a bad thing? If you get a tax refund year after year, then there is a problem with the amount of money you are paying in. This is especially true if the refunds are large.
How could a large refund each year be a bad thing? Well, you need to consider that the money you are getting back was originally your money. The IRS is not paying you interest on it, so you are effectively giving the government a free loan each year.
So, you want to know how to find out about the status of your tax refund payment. It is actually pretty easy. The IRS has a reputation for being way behind when it comes to technology. It is, but it also has a very good website where you can get lots of info.
To find out the status of your tax refund, the easiest method is to visit the IRS site. Just do a search for it. Once there, you want to click on the link that says where's my refund? It is on the home page and prominently displayed.
Now, you need to get out your tax return. Yes, the one you just filed and should have made a copy of. You need it because the IRS form will ask for the amount of the refund you are claiming, the filing status you claimed and your social security number.
As you can see, the form is incredibly simple. Just fill in the information, click and wait for an answer. You will be told the refund date, that there was a problem delivering it to you or there is a problem with the return you filed and the refund is delayed.
Obviously, an indication there is a problem with your return is not good news. Before you faint or hit the bottle, take a deep breath. The problem can be anything from a IRS computer glitch to a folded page the computer couldn't read. It is not Armageddon time.
Even if you are audited, it is important to know that most audits are correspondence audits. You will get a letter in the mail raising some issue with your return. You can agree to the proposed change by the IRS or contest it.
Most people are very happy to receive a tax refund. After all, who couldn't use a bit of extra cash. While this makes sense at first glance, any type of large refund should cause you pause. You are giving the government a free loan each year.
