As millions prepare to file their taxes, they are anxiously waiting to see how much of a refund they can expect from the IRS.
There have been several changes in tax laws for 2020 and 2021 due to the pandemic, so with stimulus checks and the child tax credits, this year is confusing.
Finding your refund amount after all of these things can be confusing.
How to find your refund amount from the IRS
You first must calculate exactly what your taxable income is.
You then need to use tax tables to see what your total income tax is for the year.
That amount is then compared to the amount you paid with what was withheld from your paycheck during the year.
If the amount you paid is higher than your taxes, the difference is your refund.
If the amount you paid is less, the difference is what you owe in taxes.
The following taxable income puts you in the corresponding tax bracket for 2021 according to the IRS
- 0-$9,950: 10%
- $9,950-$40,525: 12%
- $40,525-$86,375: 22%
- $86,375-$164,925: 24%
- $164,925-$209,425: 32%
- $209,425-$523,600: 35%
- $523,600+: 37%
Calculate the amount withheld by the IRS for tax purposes
Social Security taxes take 6.2% of your earnings.
Medicare tax takes 1.45% of your earnings.
This brings your total withholding to 7.65%.
When will I see my refund from the IRS?
The IRS has said that as long as your tax return is entirely correct, you should see your refund within three weeks of submitting it.
If you put any incorrect information, you may delay your processing time for months.
Filing electronically is much faster than by paper and mail.
Choosing direct deposit will get you your refund quicker.
If you claim the Earned Income Tax Credit or Child Tax Credit, you may see delays to make sure it isn’t fraudulent.
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