Expecting a refund in 2013?
The IRS has announced they expect refunds to be processed about as quickly in 2013 as they were in 2012. Last year, the IRS issued more than 9 out of 10 refunds to taxpayers in less than 21 days; the average refund was about $3,000.
For the new year, you can use Where’s My Refund? to check your refund. The IRS has improved the system so that you can check when your tax return has been received, when your refund has been approved and when it has been sent to you. You can start checking on the status of your return within 24 hours after the IRS has received your e-filed return or four weeks after you mail a paper return.
It may feel early but tax season is a just a mere month away: e-filing officially opens for business on January 22, 2013.
All of that said, do me a favor, won’t you? Don’t rely on that refund check. Getting a huge refund may feel like a good thing but in most cases, it’s not. It simply means that the government had the use of your money – interest free – all year. At $3,000 per year, you could have pocketed $250 per month and wouldn’t that have come in handy?
So if you’re expecting a big fat refund in 2013, contact your tax professional about tax planning for 2012. An adjustment to your withholding or other tax planning might be in order.
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