Insider's experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our partners, however, our opinions are our own. Terms apply to offers listed on this page.
Getty Images
- If your tax preparer says they're taking a percentage of your refund, you should report that.
- A bigger refund isn't better, since that's basically an interest-free loan you gave the government.
- Unless your refund takes 45 days or longer to process, don't expect to receive interest on your refund.
As tax season officially starts, you might be looking forward to getting everything filed away so you can open up the mailbox or your bank account and receive a tax refund check. But before you assume that you're going to get a hefty payout from the IRS, there are a few myths to consider that might help you reconsider not only your tax filing but also how you view tax refunds in general.
Here are the five biggest myths around tax refunds that tax experts say are important to know this tax season.
See Insider's picks for the best tax software »
Myth No. 1: Calling the IRS or visiting their office can speed up your refund
After you file your taxes, you might find yourself eager for your tax refund check. Since the average taxpayer can wait anywhere from a few weeks to a few months for their refund, you might find yourself growing even more frustrated as time goes by and you haven't seen the check deposited in your account.
That's why certified public accountant Moira Corcoran doesn't recommend calling up the IRS and waiting on hold for hours or even heading to a local office, since those methods rarely speed up when your refund check will be sent.
Instead, she says the best and most accurate way to check on your refund status is online. Using the mobile app or going to IRS.gov, you can find out more information when you use the "Where's My Refund?" tool the site offers. Plus, she says the IRS updates the site daily, so continue to check back in to see your status.
However, she does say to give your CPA or tax preparer a break after the filing since tax professionals are unable to expedite a refund and they don't have access to any IRS data that can give them insight on your refund date.
Myth No. 2: Your tax preparer can take a percentage of your refund
If you're working with a tax preparer who says they will take a percentage of your refund in exchange for their services, Robert Persichitte, a certified public accountant, says it's important to know that this is illegal.
"It's unfair for a tax preparer to charge you based on your refund amount," says Persichitte. "However, they are allowed to charge you based on the complexity of your return."
If you do encounter this, Persichitte says to report it to the Taxpayer Advocate Service as soon as possible.
Myth No. 3: Getting a large tax refund is the goal
While it might be a nice feeling to receive a hefty tax refund, CPA Keeyon Upkins says it shouldn't be your ultimate goal as a taxpayer.
"A large tax return means you overpaid in the previous year," says Upkins. "Which means you've given a free loan to the government courtesy of your own back pocket."
This isn't the best way to use your finances, Upkins says, especially if you were in a position where you carried debt during the previous year, since the money you paid to the US government could have been used to help you pay off your own bills first.
Instead, Upkins recommends working with a CPA to develop a tax plan. That way you can have a good idea of how much your tax liability will be, given your income and deductions or credits, so you can be more informed about the amount and timing of tax payments.
Myth No. 4: File fast and get your refund faster
If you're in a rush to get back money from the IRS, CPA Gail Rosen says that you shouldn't rush to file your tax return, since it won't always guarantee you that your refund check will be sent faster.
Rosen says that most refund delays and IRS notices are generated due to mistakes on your tax return, which is why it's better to take your time with your return and don't file it unless you've carefully checked it to make sure you included all your taxable income, did not make any math mistakes, and did not take tax deductions that you are not entitled to.
Myth No. 5: Tax refunds receive interest
If your tax refund is sent to you in a timely manner, you might think you're owed interest on that payment. However, certified public accountant Eric Bronnenkant says that's not usually the case.
"Timely paid refunds don't receive any interest," he says. "Only refunds which take more than 45 days to process will."
However, he mentions it's important to note that any interest received on a refund is considered taxable income.