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Tip of the Day Be Wary of Mutual Funds

Be Wary of Mutual Funds - Mutual funds for years have been a safe investment option if you are going to invest your money, but lately these investments are not...

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Income Tax Refund Check

If you are expecting a refund from the Internal Revenue Service for your federal income taxes then you will be getting a check soon in the mail for the money owed to you.

Federal income taxes are money that you have to pay to the United States for any money that can be considered income. Any money that you make from working is considered earned income. It is called earned income because you actually had to work to earn that money. You had to spend time working to get that earned income. The other type of income is unearned income. Unearned income is just like it sounds. It is money that you did not have to work to earn.

Some income that counts as unearned income is any income made form interest on any of your bank accounts. The only thing you had to do to make that money was to put your money in a bank and then wait. There was no earning involved only waiting and the money just appeared.

Out of all of that money, all of that income, people can take deductions to lower the amount of taxes that they owe. Deductions are usually based on your family size and your level of income. You can also get deductions on expenses for a business and also charitable donations.

Every time you work you are making that earned income. Before your employer gives you your paycheck every week or month your employer is required by the state to take out a certain amount o money based on the usual amount of taxes that people end up paying at the end of the year. Some people ask for more or less money be taken out of every check. All of this affects how much you will owe at the end of the year.

If you had a lot of money taken out of your paychecks then you will most likely be owed a tax return from the IRS because you ended up paying more taxes in then you were required to. If this is the case for you then the IRS will send you money via check to pay you back for the extra money that you paid in . If you are expecting a check you can look on the IRS's website to see when your check should arrive.

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