How Do Tax Returns Work: What You'll Get Back

The Story

You figured out how to file your taxes. You go Glen Coco. Now you want a candy gram (aka how much money you get back in taxes).

Yes, please.

Not so fast. Your relationship status with your refund is complicated. It’s not guaranteed you’ll get one. You only do when the amount of income tax you paid during the year is more than what you actually owed. Spoiler: if you owe the gov money, sometimes you’re the one writing the check. Either way, you don’t want it to be too big of a refund. Not even when Uncle Sam’s sending it to you.

Tell me why.

Ain’t nothing but a mistake. A big refund means you overpaid your taxes, so the gov is paying you back. But it also means you missed out on some cash flow you may have needed earlier in the year. Like money you could have used for weekly expenses.

Well, I know I get a refund. Where is it?

The IRS issues most refunds within 21 days after it receives your taxes. Psst...

here’s how to track it

like the eager beaver you are. No judgment.

OK...now what?

Time to figure out how to put that money to good use. Here are a few ways you can do it...

That sounds fun.

Told you so. And the best part is you can make it happen even faster. When you file early, electronically, and with direct deposit into your bank account, you get the goods asap.

For once, ‘early’ sounds nice...

Yup. Because early bird gets the good tax karma. Get on it with H&R Block. They have everything you need to make sure you get your max refund fast.

theSkimm

There are lots of things that suck about taxes. This is not one of them. Especially if you put your money somewhere it can have babies.