Estimated Tax Payments
To properly forecast your expected financial standing during tax time it is worthwhile to estimate your tax payments. By utilizing a tax payment calculator an individual can accurately forecast the amount owed or the amount of an expected refund during the tax season. To adequately estimate a tax payment one must understand the following components of the income tax equations: their respective tax rate or tax bracket, the total amount of money withheld during the taxable year, and the total amount of deductions, write-offs, and tax credits attached to the application.
Tax Refund Advance
As a result of a refund’s prevalence (over 75% of individual tax scenarios result in a refund), many individuals opt to partake in a tax refund advance. An advance of a refund, in essence, is a collateralized loan. The amount of the refund or a lump sum, is given to the taxpayer at an earlier date, while the amount of the individual’s refund is held as secured collateral. If the borrower fails to repay the loan, the refund will cover the losses due to default. A tax refund advance helps with liquidity and offers a taxpayer their funds more rapidly.
Income Tax Return
An income tax return is the official Internal Revenue Service form used to initiate the federal income tax levy. The income tax return lists an individual’s particular tax scenario; the write-offs, deductions, liabilities, amount of income, and tax credits all vary based on a taxpayer’s particular circumstances. As a result, the income tax return, calculates and files all income taxes for an individual or business within the United States.
Amended Tax Return
An amended tax return is simply a corrected form filed by an individual who made a mistake on their original tax forms. There are numerous complexities associated with the filing of taxes. In addition, the exactness of the system warrants a careful review and understanding of all information; a misrepresentation of a specific financial characteristic will result in the filing of an amended tax return. If income is mis-reported, or if an individual forgot to include a tax credit or deduction in their income tax form they should request and amended filing. The amended return must be filed using form 1040x, and the taxpayer must state all information regarding the problem including a full explanation of the previous mistake.
Income Tax Refund Status
An income tax refund status allows a taxpayer to view the expected date of delivery of their particular tax refund. Numerous tax forms or applications result in the obtainment of funds from the government. As a result of this prevalence, the delivery of a tax refund can often times be delayed. Because the funds are used to pay off debts, or fund current investments and expenditures, viewing the expected date of delivery will enable an individual to better forecast their financial situation. To check your refund status log on to the IRS website, and follow the instructions for a ‘tax refund inquiry.’ An individual must have their tax return information nearby, for the site will ask for personal information concerning their particular tax forms.