my

Where is My Tax Refund?

hey everybody this is kevin uh this this

is for everybody

um about what's happened this year with

refunds and just a strategy

that we have um but bear with me for a

second for those of you that have not

gotten your refunds yet

and for those of you that have gotten

letters from the irs asking for more

information so so first of all

uh people that have filed for refunds

this year

it's been really tough we've gotten more

calls this year

from people that have filed and we file

a limited

number of tax returns for clients

and so we can see here

july 9 millions of tax refunds delayed

due to

covet 19. we see other articles too

about

people upset about not getting their

refunds and um

you know the the irs or as us tax people

like to refer to them as

the service i don't know why we call

them the service but

we call them the service the the service

uh

has not been backfilling people the last

number of years and they don't have as

many employees

as they probably need uh and because of

that and because of covid19 i think it's

very understandable

that uh you know the irs is working from

home just like the rest of us and they

they are americans although

sometimes people feel like they're not

but they're just trying to do a job

anyway back to our frustration is that

the refunds are not coming

so first of all there is a tool that's

called

where's my refund and it's on the irs

website

so we used to always send people to this

and say hey go

look at where your refund is and it'll

tell you the exact date

when your refund is coming so if you go

to irs.gov

forward slash refunds where's my refund

you can

check your refund status now the

frustration

that comes this year is that people are

putting in all their information and

it's saying that we're still processing

your tax return

so we don't have any more information

than you do about this

except to say that it's frustrating the

second thing that we're seeing a lot

more

of this year is that people are getting

letters and

to be a super tax geek here they're

getting a 507

1c letter and what that letter is is to

identify

uh you know verify that the person

uh who's filed the tax return is you and

so basically they send you a letter

and multiple clients this year have

contacted us and said i got this letter

what is this is this real

and we're happy to verify that for you

but you need to have the letter you need

to have the refund amount and you need

to verify that you are you

and uh if you do not do that your refund

will

be delayed uh until you do so that's

very important and then the final thing

i want to mention

is that uh when people when people pay

taxes okay if you withhold

for example let me let me pull something

up here that i can type

okay so if you owe 25 000 in tax let's

say okay

uh that's what your tax return says you

owe

if you withhold thirty thousand dollars

during the year you do this with your

w-2

or you do this in other places so 30-25

means

a refund of five thousand dollars now

this many times

is very exciting to people tax preparers

love for people to get refunds because

they go

i get a refund and they don't mind

paying the bill as much for the tax prep

you know i pay 300 500 700

but i'm getting the refund now now what

is this

five thousand dollars well it's it's

your money

that you're getting back you owe 25 000

you're withholding 30 and you get a

refund

and although this is so true everybody

still knows they love to get a refund

okay so let's say in this example this

is example

number one let's say this is example

number two and this time you withhold

twenty thousand dollars

so what's your what's your refund oh no

refund

you get no refund sorry about that you

owe money

and you owe 5 000

now this is a lot more painful and you

also have to pay your tax preparer

unless you do your own taxes

but with this you also are going to owe

a penalty

because you made a significant

underpayment

so what you need to do and this is

right here on the irs website is uh if

you're gonna make uh if you're gonna

withhold money which this is the

strategy for you to withhold less money

and owe the irs money if you're gonna oh

uh

if you're gonna underpay the irs you

can't do it by more than 90 percent for

the current year

so so in this example here if you owe

twenty five thousand dollars of tax this

year the

uh safe harbor would be is if you

withheld twenty two thousand five

hundred dollars that is ninety percent

now there's another safe harbor too i

don't want to get into that it's based

on last year's taxes

but uh let's discuss this if if you're

saying

look i've been getting really big

refunds uh each year

and this year i haven't gotten my money

and i'm very frustrated with it

i'd prefer to owe tax in future years

then then let's talk about that

again either way if you owe 25 000

in tax you owe 25 000 in tax if you

withheld more of it and then you uh

and then you get a refund or if you

withheld less of it and then you have to

pay

it's it's really you're still paying the

uh service or the irs or the u.s

treasury

the same amount of money but again uh

the final two things is where's my

refund

um you know and i i apologize that this

has happened this year

to so many people but the refunds appear

to be delayed

i would keep checking where's my refund

and then the second thing is uh just the

identity letters if you get one of these

if you get a letter from irs always

open the letter always read it uh and

and always

act on it so anyway that's it for now

hope everyone is doing well

take care