In the case of a bad debt, a tax refund is paid to a VAT registered business person who has accounted and paid tax on a supply but has not received any payment after a period of three years from the date of that supply. Claims for refund for bad debt should be made within five years after which it becomes time barred. However, if the person recovers the tax from the recipient of the supply after receiving the refund, the tax should be paid within 30 days after the recovery date.
For income tax, the documents required include tax a deduction card Form P9 for claims relating to excess PAYE deductions, insurance policy certificates for claims relating to insurance relief, mortgage certificate from a financial institution for claims relating to interest on mortgage and withholding tax certificates for claims relating to tax deducted at source.
A refund claim should be made immediately after filing a tax return for the respective year. Upon approval or rejection of a claim, the taxpayer automatically receives an approval order or rejection order respectively via email. Does KRA really process refunds? Gone are the days of fretting over a calculator surrounded by scraps of paper at the eleventh hour. I found the whole process refreshingly simple. I saved a lot of money too!
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Here, we… 5 Minute Read. What is a tax refund? There are a few examples of why you might be due a tax refund , which include: You filed and paid your Self Assessment tax return but made changes afterwards You overpaid the amount of tax due to HMRC You no longer need to complete a Self Assessment, but have made payments on account How do I get the money back? How long does a HMRC tax refund take? Quarterly tax payments are usually due on April 15, June 15, September 15 and January 15 of the following year.
If you pay too much, you might qualify for a refund. If you pay too little, you'll owe the federal government money on Tax Day. It's important, too, to understand your tax bracket. Depending on your income and filing status, your money will be taxed at a different rate. The chart below does a good job explaining what your income tax bracket will be depending on your income.
Depending on where you live, you'll also have to file state tax returns. How much you'll pay depends on the approach taken by your state. Some states impose a flat tax. These states tax all income at the same rate, no matter how much people earn throughout the year.
Other states rely on a progressive tax. They, like the federal government, charge higher tax rates for those earning higher incomes. For example, Illinois charges a flat tax rate of 4.
Indiana also charges a flat rate, but its rate is just 3. Connecticut charges a tax rate of 3 — 6. Sitting down to file your taxes might seem intimidating. But you can make the process easier if you collect your important financial and personal information before you start your form. Your basic personal information such as the Social Security number or tax ID number for everyone included on your return and the date of birth for everyone on your return.
This will typically include your numbers and birthdates, of course, but also those of your spouse and dependents. You'll also need your income and investment information. You'll get this information from various forms that should be sent to you before you file your taxes. Your W-2 form shows how much you earned during the previous year and how much of your earnings was withheld for taxes. Your employer must send you this form by February each year.
You'll also need your bank account information showing how much interest you earned on your savings account. If you made contributions to an IRA, you'll need Form , provided by the financial institution offering your IRA and one that shows how much you contributed during the previous year. Form E is also important. It lists how much interest you paid on student loans. If you have a mortgage, Form shows how much you paid in interest on that loan.
Both forms matter because you might be able to deduct this interest on your taxes. You'll need to report these figures on your tax returns as income.
If you received dividend income, you'll need to enter the numbers listed on Form DIV. And if you received any money or benefits from the government, this income will be listed on Form G.
The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. Skip To Main Content. Video: What Is a Tax Refund? All you need to know is yourself Just answer simple questions about your life, and TurboTax Free Edition will take care of the rest. Looking for more information?
Get more with these free tax calculators and money-finding tools. Stimulus Check Calculator See if you qualify for a third stimulus check and how much you can expect Get started. Tax Bracket Calculator Easily calculate your tax rate to make smart financial decisions Get started. Self-Employed Expense Estimator Estimate your self-employment tax and eliminate any surprises Get started. Documents Checklist Know what tax documents you'll need upfront Get started.
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