Tax Overpayment Refunds
Every year, citizens have to undertake the grueling process of determining how much they owe the government. Both federal and state tax codes can be confusing and hard to follow if an independent agency or computer program is not used to assist in the process. If you don't follow the rules and codes closely, you can easily make mistakes. One such mistake is overpayment of the taxes that you owe. But don't worry, there's no penalty---and you can get your money back.
Other People Are Reading
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Which Form do you Complete?
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The IRS provides different tax forms for you to fill out. You only need to fill out one, but you need to make sure it's the right one in order to pay the correct amount in taxes. Examples include form 1040, which is for individual tax returns for those making more than $50,000 a year, and form 1040E for those making less than $50,000 a year. Several other forms exist, but these two are among the most commonly used.
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How Much do you Owe?
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Various factors determine how much you owe the government in taxes. They include but are not limited to how much you earn, how many dependents you claim, and charitable contributions. Each tax form will direct you on how to calculate or determine these factors.
Overpayment
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Overpayment of your taxes occurs if you pay more money than you owe the government. In that case, you are entitled to your money back.
Rebate
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One way you can get your money back is by requesting a rebate. This rebate can be sent to you via check or be directly deposited into your bank account.
Payment on Next Year's Taxes
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If you do not wish to receive a check for the amount you overpaid, you can have that amount apply towards your taxes in the following year.
References
Resources
- Photo Credit "Department of Treasury Seal" is Copyrighted by Flickr user: woodleywonderworks (woodley wonderworks) under the Creative Commons Attribution license.
