The Difference between Tax Return and Tax Refund

 What Is a Tax Return?

A tax return is a document that you fill out that reports your income, expenses, and tax bill. The document has been submitted to the Internal Revenue Service (IRS). In general, the document will outline how much income you receive, where it comes from, and how much money the IRS withheld for taxes in the previous year. The information is obtained from the W-2 form.

Furthermore, the returns include deductions and credits, which usually lower your tax bill. Its complexity is determined by your domestic and financial circumstances. If you have different types of income or life events, you'll need to fill out additional tax forms. Keep in mind that you must file your tax return by a certain deadline; in 2021, that deadline is April 18th.

What Is a Tax Refund?

A tax refund, on the other hand, is the amount of money that the IRS sends back to you after assessing and revising your tax return. It's more like reimbursing an overpayment you made while filing your taxes. However, not all taxpayers receive a tax refund.

You will receive a refund if your tax returns show that you are paying more taxes than you should. The IRS is open and honest, as three-quarters of all taxpayers in the United States receive their refunds.

Are the Tax Return and Tax Refunds Closely Related?

Despite the fact that these two tax terminologies are distinct, they are closely related. To receive a refund, you must first file your tax return. Furthermore, the deductions and credits you claim on your tax return may result in a larger tax refund.

Tax deductions, tax credits, and itemized income tax returns are all ways to ensure you get a large refund. You can also increase your retirement savings by taking advantage of 401(k) and 403(b) plans (b). Putting as much money on there as possible will help you get a larger refund.

If you want to receive your tax refund sooner, you must file online and accurately – selecting direct deposit also reduces the processing time to less than 21 days. Remember that a manual review will be required if your return contains errors or is affected by identity theft or fraud.

What to Do with Your Refund Money

You've verified with the IRS that you're eligible for a refund. It's all too easy to go on a shopping spree on the spur of the moment, which is never a good idea. By allowing your refund to work for you, a tax resolution CPA can assist you in making an informed decision. The money you receive can be used to offset other tax obligations; for example, it can be used to pay off college student loans or credit card bills, increasing your overall credit score.

The Distinction between Tax Return and Tax Refund

These two terms may sound similar, but they have different meanings during tax season.

A tax return is an annual file that includes your total gross income, deductible expenses, and tax liabilities owed to the IRS. A tax refund, on the other hand, is money you receive from the IRS after the IRS has reviewed and assessed your tax return. It's important to note that not every taxpayer receives a refund.

The refund is calculated using the information on your tax return. It determines who is and who is not eligible. If you are eligible, your money will be refunded to you directly.

As a result, it's best to file your returns on time and accurately. You'll avoid serious penalties for late filing and receive your refunds quickly. The returns must be accurate because they play a significant role in approving your refund.

Tax Resolution Experts in El Paso, TX and Las Cruces, NM

You need a proficient tax resolution expert to successfully file and resolve all your tax problems. The consequences for such issues are dire, and the IRS will haunt you until you complete its payments and penalties. To be on the safe side, consult a tax resolution CPA. They’ll evaluate your tax situation and give you possible options for resolving them.

Are you looking for a trusted tax advisor in Las Cruces? Contact a tax resolution CPA for all your tax needs. The years of experience garnered serving the tax needs of taxpayers in El Paso, TX, have put these experts in a better position to offer reputed services. Why wait? Reach out to a tax resolution CPA today for any tax-related services.

If you’re looking for a reputable CPA firm in El Paso, TX consider calling us at Marcus, Fairall, Bristol + Co., PLLC! We’ll answer any and all of your accounting-related questions. We offer our clients a variety of accounting services such as the following:


Marcus, Fairall, Bristol + Co., PLLC
Full-Service CPA Firm
230 Thunderbird Dr. Ste G
Phone: (915) 775-1040
Location: El Paso, TX, USA

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