Many of us hope each year when we file our taxes that we will get a refund. This means that the amount of taxes we owe is less than what they IRS formula says we should have paid in. Many people eagerly anticipate their IRS refund as it is enough for them to pay of a credit card bill or other debt. Others buy something such as furniture or they take a vacation with their refund. It really depends on how much money you end up getting back.
It is very important to be honest when it comes to filing your taxes though. You may want to be able to get a huge chunk of money back but if you get audited it won’t be in your favor at all. Instead you will be paying back that refund plus interest. In addition the IRS can tack on huge penalties and you can even be facing jail time if they can show you outright lied on your taxes in order to get more money out of them.
There are quite a few individuals in our society that feel that the way the IRS does refunds isn’t right. It seems like the middle class continue to struggle to get a very modest refund. While those that barely work are entitled to huge refund checks annually. All they have to do is work a short span of time such as a seasonal job around the holidays and they will be able to get thousands of dollars back on their return. Since this is much more than they have paid it many people that can’t qualify for that credit are steamed.
The IRS Refund also doesn’t do much for the wealthy. Amazingly there are some individuals that pay in more each year in taxes than what some of us make during that year. So they aren’t going to get much of a refund either. Yet the IRS has reasons for all of their various formulas and tax laws. They want to help strengthen the economy and they feel that the trickle down effect is the way to do it.
In order to get the most IRS refund that you are entitled to though you need to do your part. Make sure you keep track of all the deductions that you are able to take such as donations and expenses for college. Those small amounts can place you in a lower tax bracket which will also increase the amount of your refund.