Many people look forward to tax season because they can expect a refund from the IRS. The majority of American taxpayers will receive some sort of IRS refund and many of the same people will receive income tax refunds from their state governments as well.
A person receives an IRS refund because most income tax in the US is collected in the form of withholding tax. This means that the IRS takes the amount of the tax money out of a paycheck before it is paid. This is why the amount that you actually receive is smaller than that printed on the paycheck or pay stub.
Persons receive an IRS refund because the government is obligated to pay taxpayers back the tax money withheld under certain circumstances. Any person whose withholding tax exceeds the amount of tax they should be paying is entitled to an IRS refund.
How to Get an IRS Refund
The way to get an IRS refund is to file a federal return, form 1040 or 1040EZ. Persons will not receive an IRS refund if they don’t file a return. If the IRS approves the return and the person qualifies he or she will receive a refund.
How to Increase the Amount of an IRS Refund
The best way to increase the amount of your IRS refund is to take as many tax deductions as possible. Deductions can increase the amount of the refund.
Taking tax credits can also increase the amount of a refund. The great thing about tax credits is that if the amount of tax credits exceeds the amount of tax withheld, the IRS will pay a person back more than they paid in.