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Financial Tips For The New Year
Navigating the New Year: Strategic Financial Tips Amidst Omicron Challenges Financial Tips For The New Year With Omicron raging, most of us are hunkering down again during the holidays. What can be a better use of time than to do an analysis of your financial well-being and take steps to ensure that your financial future is secure with health, wealth, and happiness? So, to start the New Year off with strategic financial planning, here are our top suggestions to help you start the new year on the right note. There Is Still Time To Manage Your 2021 Finances Even though the new financial year starts on Jan 1st, you still have time to manage your finances for the 2021 financial year and take steps that will have a meaningful impact on your 2021 tax filing. One way to help save money while decreasing your tax liability is by making an IRA contribution in 2022 but earmarking it for the year 2021. When you make this contribution to your IRA for the financial year 2021, make sure you reach out to your IRA Service provider and ask them to assign it to the 2021 financial year. Just like IRA, most Flexible Spending Account (FSA) accounts allow you to still use the funds in these accounts till March 15 and count it as an expense of the previous financial year. If you made contributions to your FSA account in 2021, make sure you reach out to your FSA service provider and ask them for the deadline to use the funds remaining in the account. Invest Fully In Your Health Savings Account Health Savings Account (HSA) account is a tax-advantaged account that you can use for qualified medical expenses. You are allowed to put aside $7,300 a year for your family’s HSA, assuming your family is covered by a high deductible Health Insurance plan, so leverage these pre-tax savings by maxing out this savings account. The biggest benefit of having an HSA is that it is controlled solely by you and allows for contributions to roll over whereas FSA (Flexible Spending Account) is less flexible and is controlled by your employer. Be Fully Vested In Your Employer-Sponsored Retirement Plan The number one tip for securing your financial future is to max out your 401(k). If you are going through some financial hardship due to which you aren’t not putting any money aside for 401(k), then start with the minimum your employer will match. This will automatically double your retirement savings with an employer match. If you are already investing the minimum to take benefit of employer match, then at least increase your contribution by 1%. This 1% increase in contribution will not make much of a difference in your day-to-day living. Once you start getting comfortable with this 1% increase then again increase your contribution by 1% and keep following these baby steps till you reach the point where you can no more cuts in your take-home pay. These small incremental financial changes will significantly benefit your long-term retirement planning and will take you one step closer to your retirement goals. While you are adjusting your retirement contributions, keep in mind that the IRS has increased the limit for 2022. So, in 2022, you may contribute up to $20,500 to your 401(k), which is $1,000 more than what was allowed in 2021 if you are under 50. If you are about to hit the magical number of 50 in the year 2022 or are older than 50, you can add an extra $6,500 per year in "catch-up" contributions, bringing your total 401(k) contributions for 2022 to $27,000. Review Your Asset Allocations In Your Investments As we pass through different phases of life, our savings needs and risk appetite change. It is always advisable to review our portfolio at least twice a year, once at the beginning of the year and once in the middle of the year to ensure that the portfolio allocation is still in line with how much risk you want to take. If you experienced unexpected financial expenditures, adjust your investment distributions to align with your needs and future goals. Consider Upcoming Expenses And Plan Accordingly Planning is the best way to proceed when it comes to smart financial planning. Take a look ahead to determine what major expenses are coming up in 2022 and create a plan on how you will finance them. Examples of major expenses are house repairs or upgrades, life events such as marriage, pregnancy, or planned surgery, children’s activities, vacations, and donations to charity. Once you have your major expenses identified, start allocating funds to them in advance, so you know how to invest any remaining funds of your possible savings. Also, remember to take a look at your emergency funds account to make sure you have ample funds saved to cover your day-to-day expenses. Most financial experts recommend that you have somewhere between three months and six months of basic living expenses in your emergency fund. The three-month guideline is generally recommended for those who are in salaried positions and have more secure employment. With Covid-19 and an uncertain job market, it is always advisable to have your emergency fund well-funded. Examine Your Long-Term Financial Goals Now that you have completed financial planning for the current year, start reviewing your 3 years, 5 years, 10 years long-term personal, financial, and professional goals. Start this exercise by jotting down your 10-year goals as the benchmark. Think about what you seek to accomplish and where you want to be in your life in ten years. Now start working back from 10-year goals and what progress you need to make in three years and five years to be on target for your ten-year objectives. Think about factors at work and home. Stop Procrastinating – First Things First No one wants to think about death in the new year or for that matter ever but you cannot evade death forever, right? Have you taken steps to secure the future of your loved ones if something unfortunate happens to you? In this new year take care of the unpleasant tasks upfront. Many people put off the things they don't like or don't want to think about. Check your life insurance plans and other areas of insurance to make sure you are covered to mitigate risks. By tackling these unpleasant items early in the year, you free up the remainder of your time to focus on what makes you happy. While you are working on covering your risks, make sure you have a living will. Once you are done with these seven steps, you should be off to a stellar start in 2022 and your financial future.Get started with a tax expert today!
Track My Refund
Why Did I Get a Reduced Refund?
Understanding Potential Refund Reductions: The Role of the Bureau of the Fiscal Service (BFS) and Tax OffsetsThere are multiple reasons why you may get less refund than your tax preparer has prepared for you. Your final refund issued may depend on any changes BFS has made to your taxes. The Department of Treasury’s Bureau of the Fiscal Service(BFS) issues IRS tax refunds and Congress authorizes BFS to conduct the Treasury Offset Program (TOP). Through the TOP program, BFS may reduce your refund (overpayment) and offset it to pay:Past-due child support;Federal agency non-tax debts;State income tax obligations; orCertain unemployment compensation debts owed to a state (generally, these are debts for (1) compensation paid due to fraud, or (2) contributions owing to a state fund that weren’t paid).You can contact the agency with which you have a debt to determine if your debt was submitted for a tax refund offset. You may call BFS’s TOP call center at the number below for an agency address and phone number. If your debt meets submission criteria for offset, BFS will reduce your refund as needed to pay off the debt you owe to the agency. Any portion of your remaining refund after offset is issued in a check or directly deposited as originally requested on the return. BFS will send you a notice if an offset occurs. The notice will reflect the original refund amount, your offset amount, the agency receiving the payment, and the address and telephone number of the agency. BFS will notify the IRS of the amount taken from your refund once your refund date has passed. You should contact the agency shown on the notice if you believe you don’t owe the debt or if you’re disputing the amount taken from your refund. Contact the IRS only if your original refund amount shown on the BFS offset notice differs from the refund amount shown on your tax return. If you don’t receive a notice, contact the BFS’s TOP call center at 800-304-3107 (or TTY/TDD 866-297-0517), Monday through Friday 7:30 a.m. to 5 p.m. CST.NexGen Tax team is always here to help! Click here to contact one of our tax experts.
Track My Refund
Tax Season Refund Frequently Asked Questions
How Quickly Will You Get Your Income Tax Refund? We issue most refunds in less than 21 calendar days.It is taking the IRS more than 21 days to issue refunds for some 2020 income tax returns that require review including incorrect Recovery Rebate Credit amounts, or that used 2019 income to figure the Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC). What is Delaying Your Income Tax Refund Beyond 21 Days? Many different factors can affect the timing of your refund after we receive your return. Even though the IRS issues most income tax refunds in less than 21 days, your refund may take longer. Also, remember to take into consideration the time it takes for your financial institution to post the refund to your account or for you to receive it by mail. What Are Other Factors That Would Delay Your Personal or Business Income Tax Refund? Some tax returns take longer to process than others for many reasons, including when a return: Includes errors, such as incorrect Recovery Rebate CreditIs incompleteIt might have picked up in an Audit.Needs further review in generalIs affected by identity theft or fraudIncludes a claim filed for an Earned Income Tax Credit or an Additional Child Tax Credit. See the Q&A below.Includes a Form 8379, Injured Spouse Allocation PDF, which could take up to 14 weeks to processFor the latest information on IRS refund processing during the COVID-19 pandemic, see the IRS Operations Status page.IRS will contact you by mail when (or if) they need more information to process your return. If the IRS is still processing your tax return or correcting an error, neither Where’s My Refund? nor their phone representatives will be able to provide you with your specific tax refund date. Please check Where’s My Refund? for updated information on your refund. If I Claimed the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) on My Tax Return. When Can I Expect My Refund? According to the Protecting Americans from Tax Hikes (PATH) Act, the IRS cannot issue EITC and ACTC refunds before mid-February. The IRS expects most EITC/ACTC-related refunds to be available in taxpayer bank accounts or on debit cards by the first week of March if they chose direct deposit and there are no other issues with their tax return. Check Where’s My Refund? for your personalized refund date. Where’s My Refund? On IRS.gov and the IRS2Go mobile app remains the best way to check the status of a refund. WMR on IRS.gov and the IRS2Go app will be updated with projected deposit dates for most early EITC/ACTC refund filers by February 22. So EITC/ACTC filers will not see an update to their refund status for several days after Feb. 15. Will calling the IRS or NexGen Taxes Pro help me get my personal or business income tax refund any faster? No. unless Where’s My Refund? directs you to call us, IRS representatives or NexGen Taxes Pro will not be able to provide any additional information.If Where’s My Refund? says that we’re still processing your return, the IRS or our representatives won’t be able to give you a specific refund date. What Information Do I Need For My Refund Status? Usually information on the most recent income tax year refund we have on file for you.Can I use Where’s My Refund? to check the status of a refund on a prior year's return?Where’s My Refund? will display the status of your most recently filed tax return within the past two tax years. When Can I Start Checking Where’s My Refund? for My Refund’s Status? Twenty-four hours after the IRS has received your electronically filed tax return or at least 4 weeks after you’ve mailed a paper tax return. Will Ordering a Transcript Help Me Find Out When I’ll Get My Refund? A tax transcript will not help you find out when you’ll get your income tax refund. The information transcripts have about your account does not necessarily reflect the amount or timing of your refund. They are best used to validate past income and tax filing status for mortgage, student, and small business loan applications, and to help with tax preparation.I’m a nonresident alien. I don’t have to pay U.S. federal income tax. How do I claim a refund for federal taxes withheld on income from a U.S. source? When can I expect to receive my refund?To claim a refund of federal taxes withheld on income from a U.S. source, a nonresident alien must report the appropriate income and withholding amounts on Form 1040-NR, U.S. Nonresident Alien Income Tax Return PDF. You must include the documents substantiating any income and withholding amounts when you file your Form 1040NR. IRS will need more than 21 days to process a 1040NR return. Please allow up to 6 months from the date you filed the 1040NR for your refund. How Long Will It Take for My Status to Change From Return Received to Refund Approved? Sometimes a few days, but it could take longer.Does Where’s My Refund? always display my refund status showing the different stages of return received, refund approved, and refund sent?No, not always. Sometimes, when we are still reviewing your return, instead, it will display instructions or an explanation of what we are doing.Once per day, usually at night. There’s no need to check more often. Does the Site Give Me My Amended Return Status? No, it won’t give you information about amended tax returns. Where’s My Amended Return? can give you the status of your amended return. (IRS’s phone and walk-in representatives can only research the status of your amended return 16 weeks or more after you’ve mailed it.)I requested a direct deposit refund. Why are you mailing it to me as a paper check? There are three possible reasons. They are as follows: We can only deposit refunds electronically into accounts in your name, your spouse’s name, or in a joint account. A financial institution may reject a direct deposit. IRS can’t deposit more than three electronic refunds into a single financial account. Why is My Refund Different Than the Amount on the Tax Return I Filed? All or part of your refund may have been used (offset) to pay off past-due federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or other federal nontax debts, such as student loans. To find out if you may have an offset or if you have questions about an offset, contact the agency to which you owe the debt.We also may have changed your refund amount because we made changes to your tax return. This may include corrections to any incorrect Recovery Rebate Credit amount. You’ll get a notice explaining the changes. Where’s My Refund? will reflect the reasons for the refund offset when it relates to a change in your tax return.Tax Topic 203, Refund Offsets for Unpaid Child Support, Certain Federal and State Debts, and Unemployment Compensation Debts have more information about refund offsets. What Should I Do When the Refund I Receive is Not From My Tax Account? Please don’t cash the refund check or spend the direct deposit refund. If possible, send the refund back to the IRS. Tax Topic 161, Returning an Erroneous Refund – Paper Check or Direct Deposit has more information on what needs to be done in that case.
Track My Refund
Where is My Refund?
When Are You Going to Receive It? When will you receive your refund? The answer depends on how you filed your return. The IRS should issue your refund check within six to eight weeks of filing a paper return. If you choose to receive your refund through direct deposit, you should receive it within a week. If you used an e-file, your refund should be issued between two and three weeks. You can check the status of your refund by clicking on the links below. We Can Help You Locate Your Refund! The IRS sends most refunds within three weeks of when you file your taxes. Want to know the status of your refund right now? Let’s help you find it out. Federal Refund Status You can check the status of your Federal Refunds at IRS’s refund tracking site https://www.irs.gov/refunds What Information Will You Need? Social security number or ITIN Your filing status Your exact refund amount State Refund Status Select state and press submit to open the corresponding state website Get State Links here How Soon Can I See My Returns? You can typically see your returns 24 hours after e-filing or 4 weeks after you mailed your return. IRS usually makes the tax updates daily, overnight. What Information Is Not Available? Amended Tax Returns Refund information for Form 1040X, Amended U.S. Individual Income Tax Return is not available on IRS’s Where’s My Refund website.IRS phone and walk-in representatives can only research the status of your amended return 16 weeks or more after you’ve mailed it, Business Tax Return Information For refund information on federal tax returns other than Form 1040, U.S. Individual Income Tax Return, visit the app Prior Year Refund Information Where’s My Refund? will display the status of your most recently filed tax return within the past two tax years. If you need refund amount information for other years, you need to use Get Transcript. How Long Will My Refund Information Be Available?For U.S. Individual Income Tax Returns filed before July 1: Around the second or third week in December. For U.S. Individual Income Tax Returns filed on or after July 1: Throughout the following year until you file a tax return for a more current tax year. If your refund check was returned to us as undeliverable by the U.S. Post Office, your refund information will remain available throughout the following year until you file a tax return for a more current tax year. What If My Refund Was Lost, Stolen, Or Destroyed? Generally, you can file an online claim for a replacement check if it’s been more than 28 days from the date we mailed your refund. Where’s My Refund? will give you detailed information about filing a claim if this situation applies to you. For more information, check our Tax Season Refund Frequently Asked Questions. When Are You Going to Receive It? When will you receive your refund? The answer depends on how you filed your return. The IRS should issue your refund check within six to eight weeks of filing a paper return. If you choose to receive your refund through direct deposit, you should receive it within a week. If you used an e-file, your refund should be issued between two and three weeks. You can check the status of your refund by clicking on the links below. We Can Help You Locate Your Refund! The IRS sends most refunds within three weeks of when you file your taxes. Want to know the status of your refund right now? Let’s help you find it out. Federal Refund Status You can check the status of your Federal Refunds at IRS’s refund tracking site https://www.irs.gov/refunds What Information Will You Need? Social security number or ITIN Your filing status Your exact refund amountState Refund Status Select state and press submit to open the corresponding state website Get State Links here How Soon Can I See My Returns? You can typically see your returns 24 hours after e-filing or 4 weeks after you mailed your return. IRS usually makes the tax updates daily, overnight. What Information Is Not Available? Amended Tax Returns Refund information for Form 1040X, Amended U.S. Individual Income Tax Return is not available on IRS’s Where’s My Refund website.IRS phone and walk-in representatives can only research the status of your amended return 16 weeks or more after you’ve mailed it, Business Tax Return Information For refund information on federal tax returns other than Form 1040, U.S. Individual Income Tax Return, visit the app Prior Year Refund Information Where’s My Refund? will display the status of your most recently filed tax return within the past two tax years. If you need refund amount information for other years, you need to use Get Transcript. How Long Will My Refund Information Be Available? For U.S. Individual Income Tax Returns filed before July 1: Around the second or third week in December.For U.S. Individual Income Tax Returns filed on or after July 1: Throughout the following year until you file a tax return for a more current tax year.If your refund check was returned to us as undeliverable by the U.S. Post Office, your refund information will remain available throughout the following year until you file a tax return for a more current tax year. What If My Refund Was Lost, Stolen, Or Destroyed? Generally, you can file an online claim for a replacement check if it’s been more than 28 days from the date we mailed your refund. Where’s My Refund? will give you detailed information about filing a claim if this situation applies to you. For more information, check our Tax Season Refund Frequently Asked Questions.
