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Managing personal finances has always been an art. In fact, it requires great skills to make a lot of calculations and one needs to be alert on various fronts to ensure that nothing goes missing. The problems are more unnerving during tax season, because this is the time when you seemed to get caught up with a lot of calculations. Issues arising during tax season • Calculating the deductions: The first thing which you come across is making an exact calculation of deductions you deserve before you pay the taxes. Many people land up paying more than required while depositing their tax. A report suggests that almost 45 million American taxpayers made a claim of about $1 trillion as deductions in 2009, only in itemizing. Another 90 million tax payers made a claim of about $700 million through standard deductions. • Claiming the Refund: once you have made the extra payment unknowingly and later when you realize the same, the job is to get the extra money back from tax department. Many a time’s tax payers have experienced a delay in getting the extra money back. And this delay may range from weeks to even months. • Submitting the right kind of papers: When you prepare the documents, many a times, you experience that there are some vital papers missing or the other. So, the best thing is to start preparing as early as possible. • Lack of preparation: You may land up feeling miserable, because you did not read the norms well in advance. Now closer to the tax season, when you make an attempt to wind up everything, you feel the necessity of reading the details in a thorough way than you did. • The unavailability of Tax Consultants: Closer to the tax season or the date of main tax payment, you will see that either the consultants are not available or they are quite pricey. SO, you know what is to be done next year, hire someone as early as possible. Reasons for Tax Refund getting delayed • Sometimes there is an issue with limited number of products being released by the software companies. Even this year too, this issue affected the tax returns filed between February 14 and 22. • Out of 6.6 million tax returns, almost 10% of it is being affected due to software problem, as informed by IRS. • The other possible reason stated by IRS is that certain areas in the Form 8863 are not filled by the payers, hence causing a delay. Summary:According got IRS the issue of software may take a period of almost 8 weeks to get resolved. However, efforts are being made to ensure that the tax payers get the refund within 4 to 6 weeks and for this IRS are working aggressively. IRS advices tax payers not to check the site again and again, rather if it is checked once in a day that would be sufficient. This is suggested because; the information on the site is updated at night and once a day only. Justin is an experienced content writer provides finance management tips to solve all your financial problems in business. Read more articles related with personal financial planning and income taxes.
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