The Ultimate Tax Refund Quiz

Staff

What was the average tax refund in 2010?

A Completetax.com survey indicated that U.S. taxpayers received an average federal tax refund of $2,800 in 2010.

When you overpay taxes and get a large refund, the IRS does this.

If you get a huge refund, then the IRS, not you, was able to earn interest on that money.

If April 15 is nearing fast, and you need that refund but aren't prepared yet, it's best to do what?

Extensions are common and the IRS doesn't frown upon them. They allow you the time to find as many deductions as possible, thereby getting a bigger refund.

When you mail in your tax return on paper, when can you expect your refund?

When you file your taxes on paper forms and via the post office, it can take as long as two months -- or more -- to receive your refund.

When you e-file your tax return via computer, when can you expect your refund?

E-filing is quicker! You can expect your refund in about 10 days.

Which of these can you legally do to get a bigger refund?

Tax experts say you should do absolutely everything possible to get a bigger tax refund, short of breaking any laws. Making false claims or faking a business will get you in trouble for tax fraud.

If instead of receiving a refund, you've underpaid your taxes, what should you do?

You typically need to have paid 90 percent of what you owe, or 100 percent of last year's tax bill, in order to avoid penalties for underpayment of taxes.

If you end up with a large refund, what might you consider doing?

In some cases, you may want to have the IRS hold your refund in order to apply the amount to next year's taxes.

What might a really big refund mean?

You can reduce the amount withheld from your paycheck each pay period to get closer to a break-even position with your taxes withheld versus taxes owed.

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About This Quiz

There's not much to like about tax season unless you're a tax accountant, but there is a bright side: the refund! How much do you know about tax refunds?

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