Most taxpayers assume they are done with taxes once they have filed and paid them. However, one of the most crucial aspects of taxes – tax refunds – comes into the picture way after that. As the name suggests, it is the portion of the tax that the taxpayer gets back.
When taxpayers pay in advance, they over-calculate their due amount. However, on further verification, the liabilities turn out to be lesser than the earlier amount. This is why one needs to file for a tax refund. However, they can be difficult to deal with despite being a simple concept. To help you understand your Kentucky tax refund better, here is a concise guide.
Where’s My Tax Refund – Kentucky State
To track your Kentucky state refund online, visit the official website and provide your Social Security number along with the refund amount.
Next, you need to click on ‘Get Refund Status’. E-filed returns with electronic deposits typically take two to three weeks, while paper returns may take eight to 12 weeks for residents. Non-resident returns take an additional two to three weeks.
How To Check The Status Of Your Kentucky State Refund Online
To check your tax refund status in Kentucky, access the state’s online portal or call (502) 564-4581 for inquiries about the prior year or amended refunds. Provide your Social Security number and the exact refund amount. The Kentucky Department of Revenue suggests waiting four to six weeks for e-filed returns and 10-14 weeks for paper-filed returns before checking. You can also visit the IRS website or use the IRS2Go mobile app to track federal tax refunds, available within 24 hours for tax year 2023 e-filed returns and within three to four days for tax year 2021 or 2022 e-filed returns or four weeks for paper returns.
What Can Cause A Delay In My Kentucky Refund?
Several factors may affect tax refunds or delay their processing for electronically filed returns:
- Unpaid taxes owed by the taxpayer.
- Outstanding debts to other state agencies or the IRS.
- Discrepancies in estimated tax payments claimed on the return compared to records.
- Adjustments to refund amounts during electronic return processing.
- Issues with addresses, particularly those with rural routes or combined post office box and street addresses.
You can use Beem to file your federal and state taxes to get the maximum refund at the best price.
Kentucky Tax Brackets
Tax brackets are ranges of income levels taxed at different rates. As income increases, individuals move into higher tax brackets, leading to a higher percentage of their income being taxed. This progressive system aims to distribute the tax burden based on income levels.
Kentucky’s tax system, however, features a flat income tax rate, meaning all taxable income is taxed at the same rate regardless of income level. In Kentucky, the state income tax rate is 4.5%. It differs from states with progressive tax systems, where tax rates increase as income rises.
In addition to income tax, Kentucky imposes a sales tax rate of 6% on most purchases. Property tax in Kentucky varies by county but averages around $1,382 per year. Kentucky residents still contribute to state revenues through sales and property taxes despite the flat income tax rate.
Kentucky State Tax Deductions & Credits
Kentucky offers various deductions and credits to taxpayers to reduce their state tax liability. Standard deductions include mortgage interest, property taxes, charitable contributions, and medical expenses. Taxpayers may also be eligible for credits such as the Kentucky Earned Income Credit (KEIC) for low-income earners, the Child and Dependent Care Credit for childcare expenses, and the Education Opportunity Credit for qualified education expenses.
These deductions and credits help individuals and families lower their taxable income and potentially receive refunds or reduce the amount owed to the state, providing valuable financial relief to Kentucky residents.
Conclusion
Understanding the status of your tax refund is crucial for financial planning. Kentucky residents can easily do so by utilizing the online portal or phone services provided by the Kentucky Department of Revenue.
While tracking and receiving refunds is an easy process, various factors such as outstanding debts or address discrepancies might cause a delay. However, despite being a streamlined process, dealing with taxes and tax refunds can still be confusing and overwhelming. Innovative tax tools like Beem, come in handy in such situations. Just feed your basic info, and the tool will do the rest for you.
