So Far This Year, Tax Refunds Have Averaged $3,536| Viral News!

However, for the majority of us, receiving a tax return is not a positive experience. It essentially means that we are providing the IRS with an interest-free loan.

Since the beginning of the year, taxpayers have received substantial returns. According to the Internal Revenue Service, more than 22 million refunds would be issued in the fiscal year 2021, with an average refund of $3,536 per taxpayer.

That information is current as of February 18. As of Feb. 19, 2013, the Internal Revenue Service had issued over 16.6 million refunds, with an average refund of $2,880 per filer.

But keep in mind that the tax season didn’t start until later in the year last year. When you receive a substantial return, it may appear to be a positive development, but this is not always the case.

In other words, you prepaid your taxes in 2021, so providing the IRS with a zero-interest loan.

In an ideal situation, you’d want to minimize your withholding tax so that you don’t receive a refund.

For the previous year, this would have meant that you would have received money during 2021 and could have spent, saved, or invested it as you saw fit, rather than having to wait until 2022 to receive it.

 Tax Refunds

So Far This Year, Tax Refunds Have Averaged $3,536

If you are confident in your ability to manage your finances and have the financial resources to do so,

you may wish to pay the bare minimum in withholding/estimated taxes in order to avoid having to pay the whole amount until April 15 of the following year.

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Keep in mind, however, that you must normally pay 100 percent (110 percent in some situations) of your prior year’s tax liability or 90 percent of your current year’s tax liability in withholding/estimated taxes each year in order to avoid penalties and interest.

It is possible to check the status of your return by visiting the “Where’s My Refund?” page on the IRS website or by downloading the IRS2Go app from the App Store.

Continuing the theme of unclaimed tax refunds, TurboTax reported on TheStreet.com earlier this month that the IRS reports about $1 billion in unclaimed tax refunds every year.

It is most common for refunds to go unclaimed because individuals who do not meet the IRS income threshold necessary to file a tax return are technically entitled to a refund,

but because they do not file a tax return, they are unable to collect the money.

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