We have the right to obtain our tax refunds. When you have a credit balance, you can request the corresponding returns. This occurs when calculating your taxes, it turns out that you paid more than you owed, so you can request that the amount be returned.
When you start to carry out your tax activity and pay taxes, there are many aspects that you surely ignore, unless you are an expert accountant in the field, it is very natural to learn more over the years as you present your exercises and understand better on the operation of the institution.
If you had a favourable balance in previous years, but for some reason, you did not find out or did not know how to request it, by law, you have up to 5 years to request that refund; as long as you have submitted the annual declaration of the years that you will request.
It is important to know that only the tax refund has a term of 5 years, and not the payment of taxes. The payment of your taxes must be made in the corresponding year and month, otherwise, you could receive a fine or in worse cases, have a legal problem.
If you have a credit balance, the process of apply for a tax refund is different for different countries.
- For the United States, please visit this page https://www.usa.gov/file-taxes
- For Canadian citizens, please visit here
Who should carry out this Income Operation?
Tax refunds must be carried out by any natural or legal person that has income as established in the Income Tax Law. Income can be from capital and/or labour issues. Taxpayers from capital income and from other commercials, industrial, mining and other companies. Capitals and other commercials or capitalization of resources and commercial companies can be found: construction, real estate, mutual funds, shareholders, among others.
Taxpayers from work income. Work income is considered to be income from the provision of professional personal services and/or other personal activities.
All taxpayers who make their annual Income Declaration have the possibility of obtaining a refund of what was withheld during the previous fiscal year. How does the tax refund apply? The first thing you should consider when making the income statement is to identify the type of taxpayers since it is important to be clear that the tax refund does not apply to everyone, since it will depend on the income of the company and/or professional.
Who has priority to receive income tax refunds?
Seniors over 80 years old have full priority to receive income tax refunds. Then, priority goes to the elderly over 60, people with serious illnesses or disabilities, and finally, teachers. Payment is made in batches (as seen above), and the sooner Income Tax is declared, the sooner you can receive a refund if any. In addition, to qualify for a refund, it is essential that you have submitted your Income Tax return on time and without errors.
The order of priority for receiving the refund as already specified is the seniors over 80 years of age, seniors over 60 years old, people with serious illness or physical or mental disability (or who have dependents in these conditions). Taxpayers whose main source of income is teaching.