For some, tax season can be difficult—especially if they owe money to the government. But for many others, this time of year can bring the joy of the tax refund. These funds are essentially returned to you from the government to correct an overpayment. To better understand how this process works—and how you can get money back—here’s what you need to know about tax preparation and refunds.

A Quick Guide to Tax Refunds

Why Do Some Taxpayers Get Refunds?

If you’re an employee, there’s a good chance that your company automatically withholds funds from your paycheck and pays them to the government. These withheld funds cover federal and state taxes, as well as Social Security and Medicare.

In most cases, the amount contributed to the government ends up being more than what you owe. If your tax preparation reveals that you are owed money, the federal and state governments will cover the difference in the form of a refund.

Are There Ways I Can Increase My Refund?

The best way to increase your return amount is to work with a trusted tax preparation professional who understands current laws surrounding the process. These specialists can increase your refund by itemizing deductions and claiming credits you didn’t know you qualified for. Making strategic contributions to your retirement account may also reduce your overall tax liability, and in turn, boost your refund.   

What Happens During the Refund Process?

After you submit your tax return to the IRS, it will be processed with all other incoming submissions. The IRS will review your information and check it against data provided by your employers to ensure all the amounts are correct. Once the return is approved, the government will disperse your refund in the payment method you originally designated.

How Soon Will I Get My Refund?

In general, the IRS processes returns and provides refunds within 21 days of filing. In many cases, this timeline is much shorter if you submitted your taxes early in the season and opted for direct deposit—two solutions that help streamline the flow of processing.

Whether you’re late on this year’s return or want to maximize your refund for next year, ZP Tax offers in-depth support to both individuals and business owners in Montgomery County, MD. From filling out the forms to claiming deductions, these professionals will review your financial data one-on-one to simplify your tax preparation as much as possible. Visit this firm online to learn more about their services, or call (301) 587-4829 to speak with a member of their team.