The 2021 tax deadline has just passed. Still, you may be concerned about a few common issues taxpayers tend to deal with. To help, I’ve developed the following answers to the FAQs I hear from my clients after tax day.
Q: I owe taxes. What are my payment options?
A: You have several payment options for your 2021 tax dues:
- You may apply for a payment plan online if you need time to gather funds.
- IRS Direct Pay may be used to make a full or partial payment.
- You may pay by digital wallet, credit card, or debit card.
Q: Did my employer and I arrange correct withholding from my checks?
A: IRS.gov provides taxpayers with a Tax Withholding Estimator. It’s recommended that you check this calculator annually to ensure that your employer has correct instructions from you regarding the amount you want withheld.
If you got hit with an unexpected tax penalty when you filed this year, it’s time to make a different arrangement as soon as possible. Use your results from the estimator to complete a new W-4. If you’re receiving your pension, you’ll complete a W-4P instead.
Q: What’s my refund status?
A: You can check on your refund status anytime using the Where’s My Refund? tool online or through the IRS2Go app on the Apple Store or on Google Play. If you prefer, you can call 800-829-1954 to check via telephone. To use the telephone service, you must have:
- The exact amount you claimed as a refund
- Your tax filing status
- Your Social Security Number
Q: What should I do if I find mistakes on my tax return?
A: If you’ve submitted your return only to discover that you need to correct an error or an omission, begin by using the Interactive Tax Assistant’s tool called Should I File an Amended Tax Return?
Did you make an error regarding your income, credit, deductions, or filing status? Then you will likely be asked to complete a tax return amendment.
Did you make an error in your calculations or forget to attach a form? The IRS usually notices mathematical mistakes and will correct your error. You will be notified of this correction via mail. If they require additional forms or schedules from you, they will likewise notify you via mail.
Are you expecting a refund? It’s important not to submit an amended return until your first return has been fully processed.
Q: Why is it taking so long to receive my refund?
A: The IRS has stated that due to delays, it will likely take more time than usual to process paper tax returns via mail. If you are waiting for a refund on a tax return that included errors in recovery rebate credits or relied on 2019 income amounts to estimate the Additional Child Tax Credit or Earned Income Tax Credit, you may wait more than 21 days before you receive your refund.
If this window passes and you have not received any updates on your rebate status, it may be time to reach out to the IRS for assistance.
Do you have a question I haven’t answered here? If you are a client of Halter, CPA, you may reach out to my office directly with your questions or concerns.