Calculate 2016 Tax Refund – Tax Refund Calculators Online

There are many different website with to estimate Your Tax Refund – 2016 Tax Calculator for 2015 Tax Return. These tax calculators use tax rates and other factors which will affect how much taxes you owe or how big your tax refund will be. Most people who work for a company will typically receive a small tax refund. This is because taxes are withheld on each paycheck as you get paid throughout the year

 

Estimate 2016 Tax Refund with Tax Refund Calculators

Calculate your total tax due using the tax calculator (update to include the 2015 tax brackets). Deduct the amount of tax paid from the tax calculation to provide an illustration of your 2015 tax refund.

 

IRS Tax Refund Calculators

See how income, withholdings, deductions and credits impact your 2016 tax refund or balance due amount.

Tax Form Calculator – 2016 Tax tables integrated into the Tax Calculator. Note that the 2016 Tax Rates, Brackets & Exemption Amounts are currently ‘as forecast’ by Bloomberg.

H and R Block Tax Refund Calculator – At H&R Block, we want to make sure you get every dollar you’re entitled to. Our Tax Calculator helps you easily estimate your refund or how much you’ll owe in taxes.

TaxCaster: Free Tax Calculator – Quickly and accurately estimate your tax refund or what you may owe. Quickly estimate your tax refund anytime, anywhere with our free tax calculator app. Simply download TaxCaster to your Android or iPhone and access it anytime you have financial changes in your life. The information you enter is automatically saved so if you have any adjustments, you can easily make them in seconds to see how they affect your federal tax refund.

Estimate your 2015 tax return – See how income, withholdings, deductions and credits impact your 2015 tax refund or balance due amount.

TaxBrain Refund Calculator– Find out how much you’re getting back from the IRS today! In six simple steps the Tax Calculator will calculate an approximation of your tax refund or amount you owe.

Estimate Your Tax Refund – 2016 Tax Calculator for 2015 Tax Return –  Currently working to update our tax calculator for Tax Year 2015.

2015 Federal Tax Refund Calculator – Estimate your refund with this easy-to-use tax refund calculator. What filing status will you use on your 2015 Income Tax Return?

 

What information is needed for tax refund calculators

  • Proof of foreign status, if applying for an ITIN
  • Birth dates for you, your spouse and dependents on the tax return
  • Wage and earning statement(s) Form W-2, W-2G, 1099-R, 1099-Misc from all employers
  • Interest and dividend statements from banks (Forms 1099)
  • A copy of last year’s federal and state returns if available
  • Proof of bank account routing numbers and account numbers for direct deposit, such as a blank check
  • Total paid for daycare provider and the daycare provider’s tax identifying number (the provider’s Social Security Number or the provider’s business Employer Identification Number) if appropriate
  • To file taxes electronically on a married-filing-joint tax return, both spouses must be present to sign the required forms.

Based on your projected withholdings for the year, we can also estimate your tax refund or amount you may owe the IRS next April 2017.

Warning About Tax Refund Calculators

Remember, tax refund calculators are only estimates and will depend heavily on the amount of information entered. The tax calculators should be solely an estimation tool and should only be used to estimate your tax liability or refund. It should not be used for any other purpose, such as preparing a federal income tax return, or to estimate anything other than your own personal tax liability. Most of them do not save the information you enter.

2016 Tax Refund Schedule

After I file my taxes for 2015, when will I get my 2016 tax refund?

IRS e-file Refund Cycle Chart for 2016 shows when you may receive a tax refund after submitting your tax return with the IRS the earliest being January 11, 2016. These are just estimates. The IRS does not provide information on when tax refunds will be sent to bank accounts after being deposited. There are many factors that could affect how fast your tax refund is deposited in your bank account. It is a not an exact science, but generally the earlier you file a tax return, the quicker you will receive a tax refund from the IRS.

 

IRS e-file Refund Cycle Chart for 2016

The IRS e-file Refund Cycle Chart for 2016 with Direct Deposit and Check dates are only estimates by various website owners. It might give you a good idea, but never bank on it because many issues arise and delay tax refunds such an filing with incomplete information or having your return flagged for an audit.

 

 

2016 IRS Tax Refund Schedule

Below is the best estimate of when you might get a tax refund.

DATE ACCEPTED DIRECT DEPOSIT SENT PAPER CHECK MAILED
Jan 18 – Jan 24, 2016 Feb 5, 2016 Feb 10, 2016
Jan 25 – Jan 31, 2016 Feb 12, 2016 Feb 17, 2016
Feb 1 – Feb 7, 2016 Feb 19, 2016 Feb 24, 2016
Feb 8 – 14, 2016 Feb 26, 2016 Mar 2, 2016
Feb 15 – 21, 2016 Mar 4, 2016 Mar 9, 2016
Feb 22 – 28, 2016 Mar 11, 2016 Mar 16, 2016
Feb 29 – Mar 6, 2016 Mar 18, 2016 Mar 23, 2016
Mar 7 – 13, 2016 Mar 25, 2016 Mar 30, 2016
Mar 14 – 20, 2016 Apr 1, 2016 Apr 6, 2016
Mar 21 – 27, 2016 Apr 8, 2016 Apr 13, 2016
Mar 28 – Apr 3, 2016 Apr 15, 2016 Apr 20, 2016
Apr 4 – Apr 10, 2016 Apr 22, 2016 Apr 27, 2016
Apr 11 – Apr 17, 2016 Apr 29, 2016 May 4, 2016
Apr 18 – Apr 24, 2016 May 6, 2016 May 11, 2016
Apr 26 – May 1, 2016 May 13, 2016 May 18, 2016

There are various tax situations for every taxpayer and this is why prediction as to when you will get your tax refund can be difficult; and, every year there will be glitches with one process or another at the IRS which could delay your refund.

 

Checking on 2016 Tax Refund Status

The IRS Where’s My Refund? is updated no more than once every 24 hours, usually overnight. This a useful resource to check to determine the actual status of your tax refund.

 

IRS Refund Status Updates

When the IRS processes your tax return and approves your refund, you can see your actual personalized refund date. Even though the IRS issues most refunds in less than 21 days after we receive your tax return, it’s possible your tax return may require additional review and take longer. To use the tool you have to enter your personal information, such as your social security number, filing status, and refund amount.

 

 

IRS Split Refund Policy and Savings Bonds

Split Refund Option: Purchase U.S. Savings Bonds

Tax filers may directly purchase U.S. Savings Bonds in 2016 with their tax refunds. Filers can check off on their tax return that they want to use part of their tax refund to electronically purchase Savings Bonds. This is a feature of the IRS split refund policy. It can be very useful for taxpayers who are looking to invest in U.S. savings bond for retirement or other expenses.

 

What are split tax refunds? How do split tax refunds work?

The IRS provides the “split refund” option to enable tax filers receiving a refund through direct- deposit to allocate portions of the refund directly into as many as three different accounts. This is designed to make it easier for tax filers receiving substantial refunds, such as from the EIC and CTC, to take advantage of savings and asset development opportunities at the same time they file their return. Using the split refund option, a filer could directly deposit part of a tax refund into a savings account, part into an Individual Retirement Account, and the remainder into a checking account. Filers may also elect to receive the balance of their refund as a paper check mailed by the IRS.

 

Purchase Savings Bonds through a split refund.

When filing a return in 2015, filers choosing to split their refunds may choose to purchase Savings Bonds and deposit the rest of the refund into as many as two other accounts. While Savings Bond purchasers normally have to establish an account with the U.S. Department of Treasury in order to make a purchase, this preliminary step is not necessary when using the split refund option. The Treasury Department will mail the bonds directly to the filer. Pilot tests at free tax assistance sites in 2009 found that Savings Bonds were a popular and trusted savings option for taxpayers who might otherwise be reluctant to establish a savings account or Individual Retirement Account. The IRS provides a fact sheet on using a tax refund to purchase Savings Bonds at: www.irs.gov/pub/irs-pdf/p4830.pdf.

 

How to Split Tax Refunds into Savings Bonds

Individuals often wish to purchase Savings Bonds in the name of a child or grandchild. This may now be done using the split refund tax return option.

Taxpayers should understand that while Savings Bonds are a risk-free investment, they are a long-term savings vehicle. They generally cannot be redeemed within a year of initial purchase, unless the owner lives in a disaster area. If the owner redeems a Savings Bond within five years of purchase, he or she loses the most recent three months of interest.

 

What are the benefits to splitting a tax refund?

Lower-income workers have many demands on their modest incomes and often lack a bank account in which to deposit savings. Receiving a large lump-sum EIC and CTC refund that averages more than $2,000, and for some is more than $5,000, provides an incentive to save, but most workers are reluctant to commit their entire tax refunds to savings.

Other Benefits of Splitting Tax Refunds

The split refund option provides lower-income workers a convenient automatic savings mechanism that can facilitate their decision to save some of their income. Such workers usually do not have savings opportunities such as payroll deductions for deposits into 401(k) retirement plans. Designating a portion of a substantial tax refund for savings may enable workers to save more than they could by diverting only small amounts of their paychecks to savings. Split refunds also make it easier to participate in asset-building programs such as Individual Development Accounts (IDAs) that require individual savings.

 

How does splitting a tax refund work?

Tax filers direct the IRS on how to split their refund among different accounts, by submitting Form 8888 with their return, providing the name of the financial institution, the filer’s account numbers and the institution’s routing transit number for direct deposits. The split refund option can be chosen whether the return is filed electronically or mailed, and it can be used with any of the IRS 1040 series of tax return forms, including the 1040-EZ. (Tax filers who want to deposit the entire amount of their refund directly into one account don’t need to use Form 8888 and will continue to designate the account on the tax return form.)

 

Splitting Tax Refund Information

The flexibility of split refunds and the Savings Bond option may enable organizations seeking to build stronger linkages between free tax preparation services and asset-building to develop new services attractive to lower-income taxpayers. For example, many VITA sites now partner with a bank or credit union to help tax filers without a bank account to open a new savings account at the site. In doing so, filers can obtain a refund more quickly by filing electronically and having the IRS deposit the tax refund directly into their account.

Proponents of the split refund option actively try to increase taxpayer awareness of the Savings Bond opportunity. The D2D Fund provides approaches on how Tax Credit Outreach Campaigns and VITA programs can market Savings Bonds through split refunds at tax time, and how to modify VITA site operations and training to build in the split refund process.

How to return an erroneous tax refund check or IRS direct deposit

There could be times when the IRS sends the wrong tax refund check. It is essential that refunds checks are returned if they are not yours.

 

What to do if you get the wrong tax refund check?

If your tax refund was issued in the form of paper check and said Treasury check has not been cashed:

  1. Type the word ” Void “(Invalid) section of signing endorsement on the back of the check.
  2. Send check immediately to the office of IRS corresponding indicated below. The place of delivery is based in the city (possibly abbreviated) shown in the last line of text in front of the words TAX REFUND (REFUND), which appear on your refund check.
  3. Do not staple, double or put loops to check.
  4. Include a note that says “Return a refund check for erroneous because (and briefly explain why returns the refund check).”

If your tax refund was issued in the form of paper check and said Treasury check was cashed:

  1. Send a personal check, money order, etc. immediately to the office of IRS corresponding indicated below. The place of delivery is based in the city (possibly abbreviated) shown in the last line of text in front of the words TAX REFUND (REFUND), which appear on your refund check. If you no longer have access to a copy of the check, call the IRS toll-free at 800-829-1040 and explain that assists you need information to repay the amount of a refund check was cashed.
  2. Write on the check or money order: Payment erroneous refund, the tax period for which reimbursement and Social Security number was issued.
  3. Include a brief explanation of why returns the refund.
  4. Reinstate the wrong refund thus could result in interest owed ​​to the IRS.

If a tax refund is made by direct deposit:

  1. Contact the Department Collection Automatic ( Automated Clearing House or ACH ) from the bank or financial institution that received direct deposit and ask them to return the reimbursement to the IRS.
  2. Call the IRS toll-free at 800-829-1040, to explain why returned direct deposit.

When the rebate amount (either by paper check or direct deposit) differs from what you expected, indicating that the IRS changed the amount, will mail a notice explaining the setting, your postal address given in the registration. Please check the warning information to determine whether the change is correct reimbursement. The notice includes a toll free number if you need further assistance.

 

IRS Addresses for Returning Tax Refunds

The addresses of the IRS are based in the city (possibly abbreviated) shown in the last line of text in front of the words TAX REFUND (REFUND), which appear in your rebate check:

  • ANDOVER – Internal Revenue Service, PO Box 9311, Andover MA 01810
  • ATLANTA – Internal Revenue Service, 2385 Chamblee Tucker Rd, Chamblee, GA 30341 Atlanta
  • AUSTIN – Internal Revenue Service, PO Box 934, Austin TX 78767
  • BRKHAVN – Internal Revenue Service, 1040 Waverly Ave, Holtsville NY 11742
  • CNCNATI – Internal Revenue Service, PO Box 12267, Covington KY 41012
  • FRESNO – Internal Revenue Service, PO Box 12866, Fresno CA 93779
  • KANS CY – Internal Revenue Service, PO Box 24551, Kansas City MO 64131
  • MEMPHIS – Internal Revenue Service, 5333 Getwell Rd, Memphis TN 38118
  • OGDEN – Internal Revenue Service, 1973 N Rulon White Blvd, Ogden UT 84404
  • PHILA – Internal Revenue Service, 2970 Market St, Philadelphia PA 19104

Tips of Choose Tax Return Preparer

It is important to choose carefully when hiring an individual or firm to prepare your return. Well-intentioned taxpayers can be misled by preparers who don’t understand taxes or who mislead people into taking credits or deductions they aren’t entitled to in order to increase their fee. Every year, these types of tax preparers face everything from penalties to even jail time for defrauding their clients.

 

Here are a few tips when choosing a tax preparer:

  • Check to be sure the preparer has an IRS Preparer Tax Identification Number (PTIN). Anyone with a valid 2015 PTIN is authorized to prepare federal tax returns. Tax return preparers, however, have differing levels of skills, education and expertise. An important difference in the types of practitioners is “representation rights”. You can learn more about the several different types of return preparers on IRS.gov/chooseataxpro.
  • Ask the tax preparer if they have a professional credential (enrolled agent, certified public accountant, or attorney), belong to a professional organization or attend continuing education classes. A number of tax law changes, including the Affordable Care Act provisions, can be complex. A competent tax professional needs to be up-to-date in these matters. Tax return preparers aren’t required to have a professional credential, but make sure you understand the qualifications of the preparer you select.

 

Tax Preparer Fees

  • Check on the service fees upfront. Avoid preparers who base their fee on a percentage of your refund or those who say they can get larger refunds than others can.
  • Always make sure any refund due is sent to you or deposited into your bank account. Taxpayers should not deposit their refund into a preparer’s bank account.
  • Make sure your preparer offers IRS e-file and ask that your return be submitted to the IRS electronically. Any tax professional who gets paid to prepare and file more than 10 returns generally must file the returns electronically. It’s the safest and most accurate way to file a return, whether you do it alone or pay someone to prepare and file for you.
  • Make sure the preparer will be available. Make sure you’ll be able to contact the tax preparer after you file your return – even after the April 15 due date. This may be helpful in the event questions come up about your tax return.
  • Provide records and receipts. Good preparers will ask to see your records and receipts. They’ll ask you questions to determine your total income, deductions, tax credits and other items. Do not rely on a preparer who is willing to e-file your return using your last pay stub instead of your Form W-2. This is against IRS e-file rules.

 

Most Important Tips of Choosing a Tax Preparer

  • Never sign a blank return. Don’t use a tax preparer that asks you to sign an incomplete or blank tax form.
  • Review your return before signing. Before you sign your tax return, review it and ask questions if something is not clear. Make sure you’re comfortable with the accuracy of the return before you sign it.
  • Ensure the preparer signs and includes their PTIN. Paid preparers must sign returns and include their PTIN as required by law. The preparer must also give you a copy of the return.
  • Report abusive tax preparers to the IRS. You can report abusive tax return preparers and suspected tax fraud to the IRS. Use Form 14157, Complaint: Tax Return Preparer. If you suspect a return preparer filed or changed the return without your consent, you should also file Form 14157-A, Return Preparer Fraud or Misconduct Affidavit. You can get these forms on IRS.gov.
When do you get tax refund in 2015?

2015 IRS Tax Refund Schedule (2014 Tax Year)

When will you receive your 2014 tax refund after you file your taxes now 2015?

When do you get tax refund in 2015?It is possible to estimate when a taxpayer will get their refund after they file their taxes based on information from prior tax years. Typically, the earlier a taxpayer files their tax return, the quicker a refund will be sent to them. It is also important to remember that using the IRS eFile will get a tax refund quicker than mailing a tax return. Lastly, having funds deposited by direct deposit will allow a taxpayer to get their refund money much faster than having a paper refund sent to their home. But remember, tax refunds will be sent at many different times.

The tax refund calendar below provides as estimate only. Again, please remember that the tax refund cycle chart is based on prior year information and is not to be regarded as entirely accurate. Many different things can affect how fast a particular taxpayer will get their refund. If a return is selected for audit, it is possible that no refund will actually be issued. However, the information below should help answer the question of when do I get my tax refund?

 

Where is my Tax Refund?

The best way to check the status of your federal tax refund is to visit the Where’s My Refund page at the IRS website, or, call 1-800-829-1954, or 1-800-829-4477, or 1-800-829-1040 and inquire about your tax return status with an IRS a customer service representative. Note that the IRS only updates tax return statuses once a week, on Wednesdays.

Don’t count on getting your refund by a certain date to make major purchases or pay other financial obligations. Even though the IRS issues most refunds in less than 21 days, it’s possible your tax return may require additional review and take longer

 

Tax Refund Schedule 2015

Tax Return Accepted By IRS between Direct Deposit Sent* Paper Check Mailed*
Jan 20, 2015 (first day IRA accepts returns) and Jan 30, 2015 Feb 4, 2015 Feb 6, 2015
Jan 30 and Feb 06, 2015 Feb 11, 2015 Feb 13, 2015
Feb 7 and Feb 13, 2015 Feb 18, 2015 Feb 20, 2015
Feb 14 and Feb 20, 2015 Feb 25, 2015 Feb 27 , 2015
Feb 21 and Feb 27, 2015 Mar 4, 2015 Mar 6, 2015
Feb 28 and Mar 06, 2015 Mar 11, 2015 Mar 13, 2015
Mar 07 and Mar 13, 2015 Mar 18, 2015 Mar 20, 2015
Mar 14 and Mar 20, 2015 Mar 25, 2015 Mar 27, 2015
Mar 21 and Mar 27, 2015 Apr 1, 2015 Apr 3, 2015
Mar 28 and Apr 03, 2015 Apr 8, 2015 Apr 10, 2015
Apr 04 and Apr 10, 2015 Apr 15, 2015 Apr 17, 2015
Apr 11 and Apr 17, 2015 Apr 22, 2015 Apr 24, 2015
Apr 18 and Apr 24, 2015 Apr 29, 2015 May 1, 2015
Apr 25 and May 01, 2015 May 6, 2015 May 8, 2015
May 02 and May08, 2015 May 13, 2015 May 15, 2015
May 09 and May 15, 2015 May 20, 2015 May 22, 2015
May 16 and May 22, 2015 May 27, 2015 May 29, 2015
May 23 and May 29, 2015 Jun 3, 2015 Jun 5, 2015
May 30 and Jun 05, 2015 Jun 10, 2015 Jun 12, 2015
Jun 06 and Jun 12, 2015 Jun 17, 2015 Jun 19, 2015
Jun 13 and Jun 19, 2015 Jun 24, 2015 Jun 26, 2015
Jun 20 and Jun 26, 2015 Jul 1, 2015 Jul 3, 2015
Jun 27 and Jul 03, 2015 Jul 8, 2015 Jul 10, 2015
Jul 04 and Jul 10, 2015 Jul 15, 2015 Jul 17, 2015
Jul 11 and Jul 17, 2015 Jul 22, 2015 Jul 24, 2015
Jul 18 and Jul 24, 2015 Jul 29, 2015 Jul 31, 2015
Jul 25 and Jul 31, 2015 Aug 5, 2015 Aug 7, 2015
Aug 01 and Aug 07, 2015 Aug 12, 2015 Aug 14, 2015
Aug 08 and Aug 14, 2015 Aug 19, 2015 Aug 21, 2015
Aug 15 and Aug 21, 2015 Aug 26, 2015 Aug 28, 2015
Aug 22 and Aug 28, 2015 Sep 2, 2015 Sep 4, 2015
Aug 29 and Sep 04, 2015 Sep 9, 2015 Sep 11, 2015
Sep 05 and Sep 11, 2015 Sep 16, 2015 Sep 18, 2015
Sep 12 and Sep 18, 2015 Sep 23, 2015 Sep 25, 2015
Sep 19 and Sep 25, 2015 Sep 30, 2015 Oct 2, 2015
Sep 26 and Oct 02, 2015 Oct 7, 2015 Oct 9, 2015
Oct 03 and Oct 09, 2015 Oct 14, 2015 Oct 16, 2015
Oct 10 and Oct 16, 2015 Oct 21, 2015 Oct 23, 2015

IRS Tax Refund Estimates

These are only estimates, the IRS does not give exact dates.  There are no guarantees on when the IRS will send a refund check. Again, the earlier you file, the quicker you will receive the tax return.

 

When to Check Tax Refund Status?

  • Within 24 hours after we’ve received your e-filed tax return
  • 4 weeks after you mail your paper return
  • “Where’s My Refund?” is updated no more than once every 24 hours

Information about Tax Penalties for Filing and Paying Taxes Late

What happens when you do not pay your taxes on time?

April 15 is the tax day deadline for most people. However, remember, ff you’re due a refund there’s no penalty if you file a late tax return past the deadline. But if you owe taxes and you fail to file and pay on time, you’ll usually owe interest and penalties on the taxes you pay late.

 

Here are eight facts that you should know about these penalties for paying taxes late.

  1. If you file taxes late and owe federal taxes, two penalties may apply. The first is a failure-to-file penalty for late filing. The second is a failure-to-pay penalty for paying late. Remember, if you had taxes withheld from your paycheck and are probably owed a refund, there will be no penalty.
  2. The failure-to-file penalty is usually much more than the failure-to-pay penalty. In most cases, it’s 10 times more, so if you can’t pay what you owe by the due date, you should still file your tax return on time and pay as much as you possibly can. You should try other options to pay, such as getting a loan or paying by credit card. The IRS will work with you to help you resolve your tax debt. Most people can set up a payment plan with the IRS using the Online Payment Agreement tool on IRS.gov.
  3. The failure-to-file penalty is normally 5 percent of the unpaid taxes for each month or part of a month that a tax return is late. It will not exceed 25 percent of your unpaid taxes.
  4. If you file your return more than 60 days after the due date or extended due date, the minimum penalty for late filing is the smaller of $135 or 100 percent of the unpaid tax.

 

What is the Failure to Pay Penalty

  1. The failure-to-pay penalty is generally 0.5 percent per month of your unpaid taxes. It applies for each month or part of a month your taxes remain unpaid and starts accruing the day after taxes are due. It can build up to as much as 25 percent of your unpaid taxes.

 

What is the Failure to File Penalty

  1. If the 5 percent failure-to-file penalty and the 0.5 percent failure-to-pay penalty both apply in any month, the maximum penalty amount charged for that month is 5 percent.
  2. If you requested an extension of time to file your income tax return by the tax due date and paid at least 90 percent of the taxes you owe, you may not face a failure-to-pay penalty. However, you must pay the remaining balance by the extended due date. You will owe interest on any taxes you pay after the April 15 due date.
  3. You will not have to pay a failure-to-file or failure-to-pay penalty if you can show reasonable cause for not filing or paying on time.

Information about Tax Penalties for Filing and Paying Taxes Late

Tax Topic 653 – IRS Notices and Bills, Penalties and Interest Charges

Buying Savings Bonds With Tax Refund

With the savings bond program, you can save some of your tax refund to buy savings bonds of the United States (U.S. Savings Bonds). For just $ 50, you can buy a savings bond and start saving for the future of your family.

 

Buying Savings Bonds With Tax Refund – Form 8888

  • Savings bonds can help to have money in case of an emergency, closer to your goal of buying a home, pay for education of yourself or your children or save for retirement.
  • You can help your loved ones achieve their dreams by giving them bonuses. You can buy bonds on behalf of another person.
  • To buy a savings bond, check the box in printed form or online and indicate the amount of bonds they want to buy and the amount of each bond. If you are filing your taxes using a paper form, use Form 8888 to buy its bonds.
  • You will receive your coupon savings by mail within 3-5 weeks after receiving your tax refund.
  • IMPORTANT: To purchase Series I bonds with your tax refund, you must have a valid social security number. If you have an ITIN you can buy a Series EE bond, but not with your tax refund.

 

Buying Savings Bonds With Tax Refund

Last year more than 100 million households received a tax refund!Taxpayers in low and middle income received an average of $ 1.680 per household in federal reimbursements.That means tax season is a great time to save. If you file with the help of a tax preparer or a VITA site help, ask how you can buy a savings bond to file your taxes.

 

Important Info About Buying Savings Bonds with Tax Refund

  • You must have a valid SSN to buy a savings bond Series I with social insurance reimbursement.
  • You can buy savings bonds with your refund a minimum of $ 50 and a maximum of $ 5,000, in increments of $ 25. You can buy up to 3 vouchers.
  • You can collect your bonus after a year at most banks and credit unions, but the longer you have, the more it will grow. If you collect your bonus in the first 5 years, you will lose the last three months of interest.
  • Your voucher will earn interest up to a maximum period of 30 years. The interest rate is adjusted for inflation every six months.
  • You can buy savings bonds at your bank or credit union after tax season.

 

608C Dishonored Check Penalty Explained

My check (payment) was rejected by the bank. Now what do I do with IRS?

  • Sometimes, the taxpayer calls the IRS because he received the letter 608C, Dishonored Check Penalty Explained , stating that the bank did not pay the amount to the IRS and returned his check or other commercial payment document. The IRS does not forward to the bank for collection checks or other business payment documents. This forwarding is handled by the Bank Clearing. When a check or other commercial payment document is not paid, the Banking Clearing often forwards it to the bank and the notice is generated.
  • The IRS cannot forward your check or other commercial payment document for collection. You decide if you should wait to see if the Banking Clearing forwards it to the bank or must make an additional payment.

 

608C Dishonored Check Penalty Explained

If your check or other commercial payment document is forwarded to the bank and there are sufficient funds in your bank account to pay it, it will not be returned to the IRS ; therefore, you will not be charged interest and penalties not paid by check. However, if the payment is late, taxpayers could charged a penalty and interest for this item. The IRS will notify you if your account is due with some overdue debt.

 

How is the IRS fine calculated?

When a check or other commercial payment document that the IRS receives for paying taxes are not paid by the bank, the fine,  is usually equal to 2 percent of the amount of the check or other commercial payment document. However, if the amount of the check or other commercial paper payment is less than $ 1,250.00, the fine is a flat $ 25.00 or the amount of the check or other commercial paper payment, whichever is less. Therefore, if the amount of the check or other commercial payment document is $ 25.00 to $ 1,249.99, the fine is $ 25.00.

 

Request for reduction of fines or reduction of payment other commercial document

The IRS can reduce this penalty in certain circumstances. You can apply for reduced fine, reporting the reason why the payment was not accepted by the bank. This request must be in writing and should be done only after you have received notification that the fine has been levied.

 

Stop Payment on Check sent to IRS

Generally, this penalty is not taxed by checks or other business documents for which payment has been requested a stop payment order. If you have been fined, please send a copy of the request for suspension of payment together with the application for relief from the fine and send it to the address indicated in the notice.

What to Do If you Cannot Pay Taxes on Time

If you owe more taxes you can pay your taxes, do not panic. Be sure to file on time. Thus avoid the penalty for filing late taxes and will save you much trouble in the future.

 

Here’s what to do if you can not pay all your taxes before the deadline.

  • File your return on time and pay as much as possible. This can be possible through online tax software which will let you submit a payment to the IRS. Filing on time is essential  to avoid the late filing penalty .
  • Pay as much as you can to reduce the late payment penalty and interest charges. You can pay electronically, by telephone or by check or money order. Visit IRS.gov for electronic payment options.
  • Get a loan or use a credit card to pay your taxes. Interests and fees charged by a bank or credit card company may be less than the total interest and IRS penalties. For credit card options , see IRS.gov. Use the online tool to request an Installment Agreement. You do not have to wait for the IRS to send a tax bill to request an installment agreement. The most effective way is through Electronic Application for Installment Payment Agreement on IRS.gov. You can also apply by submitting the Form 9465 with your tax return. You can authorize an electronic funds withdrawal from your credit or debit card. That way you will not have to worry about writing a check every month and send it on time. Nor forget to make payments that may result in additional penalties.
  • Do not ignore a tax bill. If you receive a tax bill, do not ignore it. The IRS may initiate a collection process if you ignore the bill. Contact the IRS immediately to discuss your options. If you are facing a financial hardship , the IRS will work with you. Briefly, remember to present time. Pay as much as possible before the deadline of April 15 and pay the remaining debt as soon as possible. Learn more about the collection process on IRS.gov.

 

Starting an IRS Installment Agreement

If you owe $50,000 or less in combined taxes, penalties and interest, you can apply online; otherwise, you must fill out a more detailed form and mail it in.

 

What to Do If you Cannot Pay Taxes on Time

An installment agreement allows you to make a series of monthly payments over time. The IRS offers various options for making monthly payments, such as:

  • Direct debit from your bank account;
  • Payroll deduction from your employer;
  • Payment via check or money order;
  • Payment by Electronic Federal Tax Payment System (EFTPS);
  • Payment by credit card via phone or Internet; or
  • Payment by Online Payment Agreement (OPA).

 

Taxpayer Rights During IRS Collections

You have rights and protections throughout the collection process. If you would like information on arrangements to pay your bill, installment agreements, and what happens when you take no action to pay, refer to Publication 594 (PDF), The IRS Collection Process, and Publication 1 (PDF), Your Rights as a Taxpayer.