Friday, October 3, 2014

What is tax refund?

Do you understand all the taxes you pay on your income?
What is tax refund?

Have you ever looked at your pay stub wondering where half of your wage is going before even getting into your pocket?

You are not alone. Many people are not familiar with the majority of the taxes they pay and the method of deduction or even the fact that they might have overpaid taxes. There is a big chance you are due a refund and don’t even know it.

Tax refund is the amount of overpaid taxes that you may be entitled to receive back by the government if too much tax was withheld by your employer.
There are number of reasons that can lead to this overpayment of tax. If you worked abroad temporarily it is very possible that you paid too much tax, or weren't even supposed to pay tax at all. If you left your job at some point during the year and became unemployed you may also be entitled to a refund. Its possible tax was deducted incorrectly form your pay if you worked only part of the year, had any change in your personal circumstances or the local tax legislation was changed. In these cases you might have the right to get a refund.

The good news is you can claim your taxes back from the government by filing a tax declaration. The authorities would calculate the right tax amount, adjust their records and send you the amount overpaid. You can claim your taxes several years back depending on the tax laws of the particular country.

VerdeTax is here to help you prepare and submit your tax return and get the overpaid taxes back in your wallet.