Waiting For Your Federal Tax Refund? Stimulus Check? It's Not Straightforward!

Have you ever met anyone who looks forward to filling out their tax returns? Well, maybe. Some idealistic citizens who believe they're going to get a sizable Federal tax refund are chomping at the bit come January 31st. These taxpayers have either made a lot of money this year or very little. Those who have made a good amount of money may have paid in more in estimated taxes, had it socked to them in payroll deductions or have enormous deductibles. People who have made very little have paid in excess amounts and expect that their income level will result in a nice Federal tax refund. Unfortunately, this assumption may fly in the face of reason. Your first clue comes when you peruse the IRS tax booklets.

Common sense is not signature in the IRS tax booklets. The language is unclear and even a practiced reader finds it difficult to navigate to the bottom line. Even the most diligent of taxpayers is soon dismayed, trying to figure out what goes on line so-and-so. You know you made so much money. It seems that you should just be able to plug in that value and refer to a schedule which tells you how much you owe or should be repaid in your Federal tax refund. Hey, not so fast! You soon discover the many worksheets, multipliers and dividers that lead to nowhere. You read the booklet many times to make sure you're putting the correct figure on line whatever. You end up with a migraine on the third day.

You then try the online tax preparation services. You're ecstatic when you find the tax software agrees, more or less, with your own figures.

Eventually, a couple of dozen Advils later, you think your taxes are rock solid. You file them. Oh boy, I'll get that stimulus check and my Federal tax refund soon. Now I can buy $40 of gas at once to hedge the rising fuel costs.

Then you eagerly pick up your mail and there's a check-sized envelope, labeled 'stimulus payment' in bright red letters. Great! It's a fake out. The enclosed letter tells you that because your tax liability wasn't enough, your stimulus check is cut in half! The same day's mail brings a letter from the Feds telling you your taxable income is zero and you owe them $862!

You're out of aspirin. You're out of patience. That pie-in-the-sky Federal tax refund is as far away as it was January 31st. However, the Feds cheerfully tell you it's easy and fast to get help in resolving the issue. One can only hope and pray. They don't make it easy on the working taxpayer.

Summary
Federal tax refunds are looked forward to by many people who elect to have the highest withholding in order to receive the maximum refund. Tax time in general is a headache. You can find great help with software and by using professional accountants or many available services online.