A Federal refund is one you may be entitled to for many reasons. The most common one that everybody tends to think about is for their income tax. The rules continue to change as to what you will be eligible for. Some people end up getting a few hundred dollars back. Others will get several thousand if they are eligible for the earned income credit. You do have to make a certain income and have dependents in order to qualify for it.
If you mail in your tax return it can take several weeks before your Federal refund is processed and you receive a check. You can choose to have it directly deposited into a checking or savings account if you choose to do so. This is a great way to help you save time waiting for it. You also don’t have to worry about it getting lost in the mail or someone taking it. Federal refund checks are something that often go missing from mail boxes as crooks know to look for them.
There are a variety of different types of forms and payments that have to be made to the Federal government. Most of them are done by businesses so the average individual is often not familiar with them. They may cover prepaying for taxes, paying for permits, and other fees that have to be done in the course of business. These types of Federal returns are often issues throughout the year.
Sometimes your refund may get held up due to red tape. For example there may be liens against you or discreprencies they are trying to look at. Their system may show that you owe back due child support. Once you have shown proof that these issues aren’t credible you can get your Federal return issued. It can be a very long and difficult process though so you will need to be patient.
Federal refunds are a great thing if you are legitimately eligible for them. Too many people falsify information in order to get free money. The IRS can audit you for up to seven years after they send you that refund check. Should your records not reflect what you have reported, you will be owing them that money plus interest plus penalties.