The IRS tax refund, given the state of the domestic economy and the bleak outlook of the international markets, has served a crucial role for many American citizens. Over 75% of 2009 tax returns were returned with an IRS tax refund attached. The average amount of the reimbursement was a little over $2,000 for each tax payer.
The IRS tax refund gives individuals (via direct deposit or paper check) an injection of funds that can either be saved, reinvested into the economy, used to purchase consumer goods, or used to pay off debt. Whatever the maneuver, the funds generated through tax rebates, cuts, or the IRS tax refund offers hard-working Americans a slice of leverage in an otherwise brutal market.
Tax cuts that have been recently instituted were implemented to revitalize the economy, to offer Americans an outlet of revenue, and to redistribute funds to dying sectors of our domestic markets. Tax incentives such as environmental improvements have become wildly popular to accomplish similar feats-if an individual benefits society through ‘green improvements’ they will be rewarded with a tax cut via the federal government. Refunds awarded by the IRS benefit not only the individual taxpayer, but the surrounding markets and governments as well.
When an individual receives an IRS tax refund he/she will inevitably re-invest the funds in some form. The system placed by the IRS tax model is meant to benefit both federal government and tax payer. Throughout the course of the year individual workers are taxed every pay period. Money is withheld from each paycheck; both federal and state governments hold these assets in the form of an interest-free, short-term loan.
The money taken each pay period is used to finance necessary public services and pay off debt at all levels of government. At first thought this seems terribly unfair-the government is reaching into my paycheck every other week and taking 25% in addition to the taxes I pay at a local and national level? This is indeed true, however, governments desperately need funding to supply a growing population with schools, roads, protection, parks, social security, and Medicare. Although the money is exchanged every pay period, the purpose of the IRS tax refund is to re-inject the borrowed funds back into the taxpayers bank account.
The interest-free loan that is taken during each pay period is paid back each April. The IRS tax refund is either supplied via currency or used to offset money owed to the IRS, either way, it is a guaranteed reimbursement of some form that offers taxpayers access to crucial funding.
When an individual works, he/she has an obligation to supply the United State’s governments with funding in the form of taxation. Although this sounds disheartening, the IRS tax refund gives individuals a chance to save, based on the amount of taxation they choose. The IRS tax refund is used to re-balance the monies taken throughout the course of the fiscal year. Individual taxpayers have the opportunity to control levels of taxation based on the amount of dependents they choose.
If an individual wants to be taxed at a higher rate throughout the year the federal government will reimburse them to a greater extent come every April. People who choose to be taxed at higher levels are partaking in a conservative strategy, that guarantees them increased funding while minimizes their spending throughout the course of the year.
Due to advancements in technology the IRS tax refund has evolved into an online method. The IRS e-file option allows a user to submit all returns online, and subsequently track the status of the refund. The IRS e-file option has streamlined the functions of federal taxation.
The IRS e-file not only allows individuals to seamlessly file their tax returns, but allows the IRS to keep detailed electronic records of all tax forms in the country. The IRS e-file method has also ensured Americans that the IRS is innovative and willing to make improvements to their refund-distribution methods.