If I Owe Taxes From Last Year, Can I Still Get A Refund This Year?
If I Owe Taxes From Previous Years, Can I Still Get a Refund This Year?
The answer is maybe. Because along with past due tax amounts there will also be fines and penalties as well as interest, even if the refund amount anticipated is enough to cover the actual past due taxes, the remaining balance may be used for fines, penalties and interest. It’s important to make arrangements as soon as possible with the government to pay the past due amount to avoid further penalties and interest being accumulated.
Past Year Taxes Due
When you are unable to pay prior year taxes and are anticipating a refund in the current year, understand that before you receive a refund you will be required to pay the previous year’s taxes. Once you file your return, the government will simply subtract the past due amount to cover your debt and refund the rest to you, provided there are no other liens on the refund.
Amount Of Refund Versus Amount Of Taxes Past Due
It is sometimes possible to get a refund even if you owe past due taxes. In some cases, the amount of the originally anticipated refund will be sufficient to cover amounts owed from prior years. In other cases, the past due amount may not be entirely your responsibility. In this case, the amount that is your responsibility will be taken out and the remainder of the refund returned to you.
Time Involvement in Past Due Taxes and Current Year Refund
Filing a normal return usually takes seven to 14 days for your refund to be processed. When there are past due taxes involved, this can delay your refund, if any, for up to six months. Many times these returns are set aside for processing after all others are finished.
- Can I Receive a Government Tax Refund If I Am Paying Last Year’s Taxes?
- If I Use A Service To File My Taxes, Will They Get Me A Bigger Refund?
- How Can I Save Money On My Taxes This Year?
- Will I Get A Tax Refund If I Collected Unemployment?
- Why Use a Tax Credit Instead of a Tax Refund?