Tax Refund

For many people, April is the time of year they dread, but for others, it means anticipation of a tax refund from the previous year. For those looking for tax refunds, the time is one of anxiously waiting and continuously checking the tax refund status.

The older taxpayers remember the time before e-Filing when one could wait six to ten weeks to receive a federal tax refund. During that time frame, the only quick way to receive a refund was to make sure you filed for your federal income tax refund as soon as you received the W2s from your employer. If you were going to use the services of a tax preparer, this often meant you had to schedule an appointment and hope your W2s arrived before the time of the appointment. Anyone who filed for an IRS tax refund before the end of February could anticipate receiving his or her refund within about four weeks. Those who waited until the last day to file usually had to wait between eight and ten weeks.

Technology has come a long way from those early days. Today if you don't have a computer, you can even use your telephone for a tax refund. You can check your federal tax refund status on the phone or on the IRS website approximately one week after you file your taxes. If you prepare your taxes online, you will also find a tax refund estimator at many of the sites. Having access to a tax refund calculator helps in several ways. The main thing is for those who were considering taking advantage of an instant tax refund, you know what the charges will be since these are based upon the amount of the tax refund. A tax refund estimate may also tell you whether you want to make additional deposits into an IRA in order to take advantage for the tax savings for the current year.

In 2006, an additional deduction was added, a telephone excise tax refund. This is a one-time deduction that is limited to those who paid long distance charges from 2003 until the tax was eliminated. You can take either a flat credit that is between $30-50 or you may choose the exact amount of the taxes that you paid. For most people, it is easier to take the maximum credit instead of trying to add up the taxes you paid, if you even still have the records of those payments.

For those filing for a New York state tax refund, make certain that you know all of the deductions to which you are entitled. Some states have different provisions in their structures, thus the importance of making certain of your own state's regulations. Don't file for your NYS tax refund until you know that you have taken every deduction that you are allowed.