How to Claim an Income Tax Refund

An income tax refund is where the taxpayers are refunded the extra tax that he has paid in the financial year. The tax authorities return overpaid taxes when the liability of tax is less than what amount the taxpayer has paid.

There are many situations in which a person become eligible for an income tax refund

• The taxpayer has paid more tax than he is liable for
• If taxes deducted by a bank or employer exceeds the taxpayer’s liability
• If the same income has been taxed in a foreign country with which the government has an agreement to avoid double taxation
• If the taxpayer has not declared his tax saving investments that provided him with tax benefits

In order to know if you’re eligible for a tax refund, you will first need to compute your actual tax liability. There are income tax calculators that can help you determine how much tax you’re liable to pay and what refund you’re entitled to.

It usually takes between two to six months from the date that you file your return to get the tax refund.

The income tax refund status can be checked online, and the income tax refund is paid either through a debit or credit card or through the bank account or checks. The income tax refund can also be refunded for up to the previous two years.

If you have filed a return, and if the refund has been claimed but not received, then you will have to log into the website to know the return status. Depending on the tax authority, there can be different status update messages regarding your income tax refund. Here are some of the most common update messages:

Refund Has Expired. This usually infers that period for cashing the refund check has ended. In this case, contact the tax authority, either directly or online.

Refund has been returned. This means that the refund was sent via the postal service but was returned to the tax authorities as undeliverable. In this case, the refund will be cancelled. You will have to contact the tax authorities so a new refund may be issued.

Refund failed. This could be caused by any number of issues. For example, the refund could have been revoked, or the bank direct deposit routing or account numbers were entered incorrectly.

Refund not credited. This could happen because of wrong account information that is used by the bank to transfer the amount that delays in the credit to your bank account. You will have to check the account details mentioned and if that is correct then contact your bank to check the status.

Refund adjusted. This means that the refund for current tax year has been adjusted against the outstanding demand of the previous assessment year.

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