As a U.S. taxpayer, you may be eligible for a reimbursement or a tax refund from the Internal Revenue Service (IRS) in 2024. A reimbursement is a payment from your employer or another source for expenses you incurred and reported on your tax return. A tax refund is a payment from the IRS when you overpay your taxes or qualify for certain credits or deductions. This blog post will explain how to claim your reimbursement and tax refund from the IRS in 2024 and what to do with them once you receive them.
How to Claim Your Reimbursement from the IRS in 2024
To claim your reimbursement from the IRS in 2024, you need to report the amount and the source of your reimbursement on your tax return. Depending on the type of reimbursement, you may need to include additional forms or schedules with your return. For example, if you received a reimbursement for moving expenses, you must file Form 3903, Moving Expenses, with your return. If you received a reimbursement for medical expenses, you need to file Schedule A, Itemized Deductions, with your return. You can find more information about the different types of reimbursements and how to report them on Publication 525, Taxable and Nontaxable Income.
The IRS will process your tax return and issue your reimbursement as a direct deposit to your bank account or as a paper check by mail. You can check the status of your reimbursement on the Where’s My Refund? tool on the IRS website. You will need your Social Security number, filing status, and exact refund amount to access the tool. The IRS updates the tool once a day, usually overnight. You can expect to receive your reimbursement within 21 days of filing your return electronically or within six weeks of mailing your return.
How to Claim Your Tax Refund from the IRS in 2024
To claim your tax refund from the IRS in 2024, you must file your tax return by the deadline, April 15, 2024, for most taxpayers. You can file your return online using IRS Free File or commercial tax software or by mail using a paper form. You can receive your refund as a direct deposit to your bank account, a paper check by mail, or a prepaid debit card. You can also split your refund among three accounts or use it to buy U.S. savings bonds.
What to Do with Your Reimbursement and Tax Refund
Once you receive your reimbursement and tax refund from the IRS, you may wonder what to do with them. Here are some finance tips to help you make the most of your money:
- Pay off your high-interest debt. you any credit card debt, personal loans, or other high-interest debt, you should use your reimbursement and tax refund to pay them off as soon as possible. This will save you money on interest and fees and improve your credit score.
- Build your emergency fund. If don’t have an emergency fund or are too small, you should use your reimbursement and tax refund to build or replenish it. emergency fund is a savings account that you can use to cover unexpected expenses, such as medical bills, car repairs, or job loss. You should have enough money in your emergency fund to cover three to six months of your living expenses.
- Invest in your retirement. If you have any extra money left after paying off your debt and building your emergency fund, you should use your reimbursement and tax refund to invest in your retirement. Depending your eligibility and preferences, you can contribute to an IRA, a 401(k), or another retirement plan. Investing in your retirement will help you secure your financial future, enjoy the benefits of compound interest and tax advantages.
- Spend some on yourself. While using your reimbursement and tax refund wisely is essential, spending some of it on yourself is also okay. You can treat yourself to something you enjoy, such as a vacation, a new gadget, or a hobby. Spending money on yourself will make you happy and motivated and reward you for your hard work and financial discipline.
How to Avoid Scams and Phishing Attempts Related to Your Reimbursement and Tax Refund
Unfortunately, many scammers and fraudsters try to take advantage of taxpayers expecting a reimbursement or tax refund from the IRS. They may send you unsolicited emails, phone calls, text messages, or letters that claim to be from the IRS or another official agency and ask you to provide your personal or financial information or to pay a fee or a penalty. These phishing attempts aim to steal your identity, money, or both. Here are some tips to avoid these scams and protect yourself:
- The IRS never initiates contact taxpayers email, text message, social media to request personal or financial information or to demand payment. If you receive such a message, do not reply, click any links, open any attachments. Instead, report it to the IRS by forwarding it to mailto:phishing@irs.gov.
- The IRS only calls taxpayers who owe taxes or have other tax issues after they have mailed several notices. If receive a phone call from someone claiming to be from the IRS and have not received any notices, or you do not owe any taxes, do not give them any information or money. Instead, hang up and report it to Treasury Inspector General Tax Administration (TIGTA) at 1-800-366-4484 or online at [tigta.gov].
- The IRS only mails letters to taxpayers with tax issues or need to verify their identity. If you receive a letter from the IRS and are unsure if it is legitimate, you can check the letter number and contact information on the IRS website at [irs.gov/individuals/understanding-your-irs-notice-or-letter]. You should follow the instructions and respond immediately if the letter is authentic. If the letter is fake, you should report it to the IRS by calling 1-800-829-1040.
- The IRS never asks taxpayers to provide their debit or credit card numbers, bank account, PINs, passwords, or other sensitive information over the phone, by email, or by mail. The IRS also never asks taxpayers to pay their taxes with gift cards, prepaid debit cards, wire transfers, or cryptocurrencies. If someone asks you to do so, it is a scam. The only official way to pay your taxes is through the IRS website at [irs.gov/payments] or by mailing a check or money order to the address on your notice or letter.
How to Contact the IRS If You Have Any Questions or Issues with Your Reimbursement and Tax Refund
If you have any questions or issues with your reimbursement or tax refund from the IRS, you can contact the IRS by phone, online, or by mail. Here are some ways to reach the IRS:
- To check the status of your reimbursement or tax refund, use the Where’s My Refund? tool on the IRS website or call the automated refund hotline at 1-800-829-1954. You need your Social Security number, filing status, and exact refund amount to access the tool or the hotline.
- To get answers to your tax questions, you can use the [Interactive Tax Assistant] the IRS website or call the IRS at 1-800-829-1040. You can also visit a local [Taxpayer Assistance Center] or a [Volunteer Income Tax Assistance] Tax Counseling for the Elderly site near you for free tax help.
- To get copies of your tax transcripts, use the [Get Transcript] tool on the IRS website or call the IRS at 1-800-908-9946. You can also request your transcripts by mail by filling out Form 4506-T, Request for Transcript of Tax Return, and sending it to the address shown on the form.
- To get copies of your tax returns, use the [Get Your Tax Record] tool on the IRS website or call the IRS at 1-800-829-1040. You can also request your returns by mail by filling Form 4506, Request for Copy of Tax Return, and sending it to the address shown on the form. The fee of $43 for each return requested. You can only request returns for the current year and the past six years.
If you need to contact the IRS for any other reason, you can find the appropriate phone number, address, or online service on the [Contact Your Local IRS Office] page on the IRS website.
This blog post has helped you understand how to claim your reimbursement and tax refund from the IRS in 2024 and what to do with them once you receive them. Remember, the IRS is here to help you with your taxes, not to make them harder. If you have any questions or issues, please get in touch with the IRS or a qualified tax professional. Happy filing! 😊