How do i know if i owe taxes

August 31, 2021 by Samantha Lamb

Owing the IRS additional taxes is not something most people plan on, but it can happen to anyone.

The most common way to know if you owe the IRS or not would be to start with your tax return.

If you are one of the millions of self-preparers who uses a tax preparation software, the program will tell you whether you will get a refund or end up owing taxes. If you use a tax professional to file your taxes, they will let you know if a refund is in your future or if you will be required to pay the taxing agency.

After your tax return is submitted, it will be reviewed and processed by the IRS. The IRS computer system looks at the return and updates your account with the information provided. Sometimes the system flags your tax return for further review, and this will trigger a notice being mailed to you. The notice will let you know if the IRS thinks you owe them money based on the information provided.

Use the IRS Online Account Tool to Check if You Owe Taxes

If you haven’t received a notice, but think you might owe the IRS, you can also utilize their Online Account Tool, which is one of many tools that the IRS has added over the years to help taxpayers better understand their information. The online account tool allows you to:

  • Look up tax records
  • Determine whether or not you owe taxes – and view any amounts you possibly owe
  • Find out information regarding tax filing
  • Set up an online payment agreement and/or pay your taxes online
  • Review the past 18 months of payment history
  • View key tax return information for the most recent return you filed

To access the online account tool, you will need to register by visiting Secure Access, which is the IRS’ two-factor authentication process. This helps protect your identity and your personal information. If you’ve already logged into Secure Access, you can use the same username and password as before.

What to do if you Owe Money to the IRS

In the event that you receive a notice or you do owe money to the IRS, TaxAudit provides quality audit defense and tax debt relief services to taxpayers all over the country. Many people who owe money to the IRS or a state tax authority qualify for some sort of tax debt relief. That relief comes in different forms like preventing wage garnishment and helping you set up payment plans. Some people may benefit from a tax debt settlement, or you may qualify for Innocent Spouse Relief or Penalty Abatement. There are lots of different solutions out there, and our tax relief specialists will help you navigate the tax laws and regulations to find a solution that works for you.

If you’ve received a notice from the IRS or a state tax authority – TaxAudit can help determine if the notice is correct or not. If the notice is correct, our tax professionals will help you through the process and let you know what the best course of action will be. If the notice is not correct, we will let you know what documentation we will need and will respond to the IRS for you. In every case, one of our main goals is to help educate you as a taxpayer to make sure you avoid owing the IRS in the future.

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Find out if the IRS received your tax return and check the status of your refund. Learn why your tax refund could be lower than you expected.

On This Page

  • Check Your Federal Tax Refund Status
  • Find out if Your Tax Return Was Submitted
  • Is Your Tax Refund Lower Than You Expected?
  • Undelivered and Unclaimed Federal Tax Refund Checks

Check Your Federal Tax Refund Status

If you have filed your federal income taxes and expect to receive a refund, you can track its status.

Have your Social Security number, filing status, and the exact whole dollar amount of your refund ready. 

How to Check Your Refund Status

Use the Where's My Refund tool or the IRS2Go mobile app to check your refund online. This is the fastest and easiest way to track your refund. The systems are updated once every 24 hours.

You can call the IRS to check on the status of your refund. However, IRS live phone assistance is extremely limited at this time. Wait times to speak with a representative can be long. But you can avoid the wait by using the automated phone system. Follow the message prompts when you call.

When to Expect Your Refund

Refunds are generally issued within 21 days of when you electronically filed your tax return or 42 days of when you filed paper returns. If it’s been longer, find out why your refund may be delayed or may not be the amount you expected.

How to Check the Status of Your Coronavirus Stimulus Check

If you're trying to find out the status of your coronavirus stimulus payment, go to the IRS's Recovery Rebate Credit page. 

Learn more about the stimulus payments, including whether you qualified for one and what to do if you didn't receive yours.

Find out if Your Tax Return Was Submitted

You can file your tax return by mail, through an e-filing website or software, or by using the services of a tax preparer. Whether you owe taxes or you’re expecting a refund, you can find out your tax return’s status by:

  • Using the IRS Where’s My Refund tool

  • Viewing your IRS account information

  • Calling the IRS at 1-800-829-1040 (Wait times to speak to a representative may be long.)

  • Looking for emails or status updates from your e-filing website or software

If you file your taxes by mail, you can track your tax return and get a confirmation when the IRS has received it. To do so, use USPS Certified Mail or another mail service that has tracking or delivery confirmation services.

What information should I have to get my tax return status?

If you call the IRS, you should have the following information ready when you ask about your tax return’s status:

  • Social Security number and birthdate
  • Filing status: Are you single, married, or a head of household?
  • Any prior communications from the IRS

What is the status of my state tax return?

To see if your state tax return was received, you can check with your state’s revenue or taxation website. There, you can find out if your refund is being processed. Or, you can get further contact information to confirm that your return was received.

Is Your Tax Refund Lower Than You Expected?

If you owe money to a federal or state agency, the federal government may use part or all your federal tax refund to repay the debt. This is called a tax refund offset.  

How the Treasury Offset Program Works

Here's how the Treasury Offset Program (TOP) works:

  1. The TOP will check if your name and taxpayer information are in its delinquent debtor database.
  2. If there is a match, TOP will notify you that it is deducting the amount you owe from your tax refund.
  3. TOP will send the outstanding amount to the government agency to which you owed the money.

If you owe more money than the payment you were going to receive, then TOP will send the entire amount to the other government agency. If you owe less, TOP will send the agency the amount you owed, and then send you the remaining balance.

Here's an example: you were going to receive a $1,500 federal tax refund. But you are delinquent on a student loan and have $1,000 outstanding. TOP will deduct $1,000 from your tax refund and send it to the correct government agency. It will also send you a notice of its action, along with the remaining $500 that was due to you as a tax refund.

The Internal Revenue Service (IRS) can help you understand more about tax refund offsets.

If a Deduction Was Made in Error

If you believe that a deduction was an error, contact the agency that said you owed money. Call the Treasury Offset Program at 1-800-304-3107 to locate the agency you need to contact.

Undelivered and Unclaimed Federal Tax Refund Checks

Every year, the Internal Revenue Service (IRS) has millions of dollars in tax refunds that go undelivered or unclaimed. 

Undelivered Federal Tax Refund Checks

Refund checks are mailed to your last known address. If you move without notifying the IRS or the U.S. Postal Service (USPS), your refund check may be returned to the IRS.

If you were expecting a federal tax refund and did not receive it, check the IRS' Where’s My Refund page. You'll need to enter your Social Security number, filing status, and the exact whole dollar amount of your refund. You may be prompted to change your address online. 

You can also call the IRS to check on the status of your refund. Wait times to speak with a representative can be long. But you can avoid waiting by using the automated phone system. Follow the message prompts when you call.

If you move, submit a Change of Address - Form 8822 to the IRS; you should also submit a Change of Address to the USPS.

Unclaimed Federal Tax Refunds 

If you are eligible for a federal tax refund and don’t file a return, then your refund will go unclaimed. Even if you aren't required to file a return, it might benefit you to file if:

  • Federal taxes were withheld from your pay

and/or

  • You qualify for the Earned Income Tax Credit (EITC)

You may not have filed a tax return because your wages were below the filing requirement. But you can still file a return within three years of the filing deadline to get your refund.

State Refund Checks

For information about your state tax refund check, contact your state revenue department.

Last Updated: November 15, 2022

Top

How do you know if you owe taxes or get a refund?

Whether you owe taxes or you're expecting a refund, you can find out your tax return's status by: Using the IRS Where's My Refund tool. Viewing your IRS account information. Calling the IRS at 1-800-829-1040 (Wait times to speak to a representative may be long.)

Does the IRS notify you if you owe taxes?

The IRS mails letters or notices to taxpayers for a variety of reasons including if: They have a balance due.

How do you end up owing taxes?

Here are seven reasons why you might owe taxes..
Change in Employment Status. ... .
Child Tax Credit. ... .
Self-Employment Income. ... .
Capital Gains Taxes. ... .
Increased Income. ... .
Life Changes. ... .
Lower/Fewer Tax Deductions..