What is the number of times I can file for a tax refund? This is an important question to ask if you want to make sure that you are doing your best to ensure that you can get money back from the government. It doesn’t matter if you had a lot of money withheld from your paycheck each month or not — there are some cases where you might be due back some money.
The government has several tips and recommendations for tax refund issues. If the government fails to acknowledge your Form 1040X within 30 days, the Internal Revenue Service will treat your refund as a return and you could still receive it. However, there are certain conditions to consider.
You can file an amended tax return as many times as you need to, but there are limitations.
You can only file one amended return per year, and the time limit for filing is three years from the date that you originally filed your return.
If you haven’t filed a return yet, you can still file an amended return; however, if you owe taxes or have a balance due on your original return, you will have to pay those amounts before filing an amended return.
You cannot change or add anything on the return that you e-filed. It is too late, just like when you put an envelope in a US mailbox
Now you have to wait until the IRS either rejects or accepts your return. If your return is rejected, you will be able to go into your account and add or change it and resend it.
If the IRS accepts your return, then you have to wait until it has been fully processed and you have received your refund or paid the tax due. THEN you can prepare an amended tax return 1040X and mail it in. You cannot e-file an amended return. Meanwhile, DO NOT change anything on your return until you start the amended return. If you did change or add the missing info then take it out and put your return back to the way it was when you first filed it.
What Happens If the Same Income Tax Return Is E-Filed Twice?
The Internal Revenue Service has a strategic process for receiving and processing federal income tax returns. As one measure to prevent identity theft and tax fraud, the IRS uses your Social Security number to verify the authenticity of your return. If your Social Security number enters the electronic filing system twice in the same year, the IRS will take the proper measures to prevent possible tax fraud or identity theft.
The Rejection
Once someone files a tax return electronically under your Social Security number, the IRS database flags the number, preventing you from filing additional returns. If you attempt to file your return twice, the IRS will reject the return and return it with an error code and explanation. The IRS typically uses error code 0515 or IND-515 to inform the sender that the taxpayer already filed a tax return for the same year using the same Social Security number.
What You Should Do
If you receive a rejection after filing your first return, immediately recheck the information on your return to ensure you entered your Social Security number correctly. If the information is correct and you are certain you did not already file an income tax return, contact the IRS at (800) 908-4490 Monday through Friday from 7 a.m. to 7 p.m. local time. If someone else used your Social Security number, you are typically the victim of identity theft. Complete Form 14039 and mail the form with your income tax return. You are required to submit at least one document as proof of your identity, which can include a copy of your passport, Social Security card or driver’s license.
What Happens Next?
The IRS has an extensive team dedicated to investigating identity theft. In a typical case, investigating your situation and processing your return can take approximately 180 days. You should receive a letter or a phone call from someone from the IRS Identity Protection Specialized Unit, who will explain the next steps. In addition, you should receive an identity protection personal identification number, or IP PIN, which will protect you from future tax fraud. To file future returns electronically, you will need to provide this number. Your IP PIN guarantees that only you can file a return under your Social Security number and helps the IRS avoid delays when processing your return and issuing a refund.
Protecting Yourself
There are several measures you can take to lower your chances of being victimized by identity theft. Never carry your Social Security card or any other documents that contain your Social Security number. Check your credit report at least once a year using the free service provided by the Federal Trade Commission website. Give out your Social Security number only when required on official documents from a trusted source. Have a safe and secure place to lock up documents that contain sensitive information. Protect your computer by installing anti-virus and anti-spyware software and firewalls and update your security patches. In addition, change the passwords on your Internet accounts on a regular basis.
How to file for tax refund
Income Tax Refund: How to Claim full Refund of Income Tax?
An income tax refund happens when there is a mismatch between tax paid and your actual tax liability. You may realise that you have a tax refund at the time of filing your Income Tax Return (ITR). After you have filed your ITR and the income tax officer assessing the return finds it to be in the order he/she may approve your income tax refund.
This is usually seen as a bonus income, as TDS rates are far lower than the income tax slab rates.
What is Income Tax Refund?
An income tax refund is a state of reimbursement to a taxpayer when he pays a higher tax in the given financial year (FY) than your final assessed liability. Income tax refunds are possible when you have been paying the compulsory advance tax or have TDS deductions on your income.
At the time of filing an income tax return (or ITR), you can estimate the possible tax refund. The excess tax you have paid will be returned to you as a refund under Section 237 of the Income Tax Act, 1961. The income tax department will sanction the tax refund only after thorough verification of the income tax return filed.
The additional tax paid does not attract any interest. Thus, you can avoid paying excess tax and rather invest the money. You should estimate your possible tax liability for the year in advance and adjust your advance tax payments accordingly.
Eligibility Criteria for Income Tax Refund
You become eligible for the income tax refund if you meet any of the following criteria:
a) Your total advance tax payments are more than 100% of your actual tax liabilities for the financial year
b) Your TDS payments in the financial year exceed your final tax liability after regular assessment
c) If you have made last moment tax-saving investments
d) You have paid tax on your income in a foreign country that has double taxation avoidance agreement (DTAA) with India
e) You have paid excess tax under regular assessment due to an error in assessment
How to Claim Income Tax Refund?
The simplest way to claim your income tax refund is by filing a correct income tax return before the due date. While filing your return you can check the total advance tax payments under Form 26AS.
After you have filed your income tax return the assessment officer must be satisfied with the income tax calculation of the form. If your balance of advance tax payment under Form 26AS is more than your tax liability under the filed ITR, the officer may approve your tax refund.
Otherwise, you can also file Form 30 to request a review of your income tax payments against your liability. You can receive your income tax refunds faster if you provide your bank account details for direct transfer.
You can check the income tax refund status on your e-filing dashboard after filing and verifying the ITR.
Due Date to Claim Income Tax Refund
You can claim an income tax refund within 12 months after the end of the relevant assessment year. However, the following conditions will also apply to the tax refund claims:
a) You can claim a tax refund on the income tax paid within six successive assessment years. CBDT will not accept tax refund claims older than this period.
b) CBDT does not pay any interest on the tax refunds
c) The officers may accept delayed tax refund claims if it requires verification
d) The total claim amount for one assessment year should not be more than Rs 50 lakh
Income Tax Refund in Special Cases
In case a person is unable to claim an income tax refund due to insolvency, death, liquidation, incapacity, or any other cause, their legal representative, guardian, receiver, or trustee can file for an income tax refund on their behalf, under Section 238 of the Income Tax Act, 1961.
Interest Earned on Income Tax Refund
The Income Tax Department mandatorily pays an interest if the refund amount is equal to or above 10% of the total tax paid under Section 244A of the Income Tax Act. Accordingly, simple interest of 0.5% per month is levied on the amount of tax refund and paid to you.
How can you Check Income Tax Refund Status through E-Filing Website?
You can file and track your ITR and income tax refund status at eportal.incometax.gov.in. If you do not have an account create your account on the website using your PAN and Aadhaar numbers. Log in to this portal and check your latest ITR status.
If your last ITR is not visible on the dashboard you can go to e-File on the menu, then Income Tax Returns and select ‘View Filed Returns’. This will show you all your historical ITRs and their status. If you have been filing returns in the offline mode, you will need to navigate through ‘View Filed Forms’.
If your last ITR has been processed and a tax refund has been issued you can check the status of the same here.
How can you Check Income Tax Refund Status through TIN NSDL Website?
You can also check the status of the issued income tax refund through the TIN NSDL portal. Visit https://tin.tin.nsdl.com/oltas/refund-status-pan.html and enter your PAN and select the assessment year you want to check tax refund status for.
The portal will show you one of the following status messages:
a) Not determined if the assessing officer is yet to accept the refund
b) Refund Paid or Credited to Bank if the refund has been processed and paid
c) ITR Proceeds determined and sent to Refund Banker if the refund amount is yet to be transferred (cheque drawn)