In 2023 there are seven tax brackets with each one having a different tax rate ranging from 10% to 37%. The brackets used to calculate your income tax depend on your filing status. Your effective tax rate looks at the overall taxes paid on your income, providing a better sense of your federal income tax bill as a percentage of your taxable income.Ī tax bracket is a range of taxable income that is subject to a specific tax percentage.As you earn more money, your income may fall into higher tax brackets, causing different chunks of your taxable income to be taxed at different rates.means lower income levels pay lower tax rates than higher incomes. The progressive tax system in the U.S.Visit Refunds and credit of overpayments to learn more. This page contains important information on the time limitations for claiming a refund and on the calculation of interest. Also, the Department of Revenue must issue refunds within a certain time period or pay interest on the amount of the refund. You must claim your refund or credit within a certain time period, as further detailed below. For e-filed returns the turnaround time is about 6 weeks but for paper returns it could take up to 10 weeks. Most refunds are claimed on an original return and will be issued automatically by the Department. However, often an overpayment is refunded directly to you. An overpayment may also be offset or intercepted by the Department of Revenue and applied to another liability. ![]() Additionally, when you file an amended return or an abatement application to reduce the amount of tax due, and you previously paid more than what is now shown as due, an overpayment may be generated.Īn overpayment claimed on a return may be applied as a credit for your next year’s estimated tax or you may request that it be refunded to you. An overpayment may also be generated if you are entitled to a refundable credit that exceeds the amount of tax due. When you pay more taxes (i.e., withholding taxes or estimated taxes) than the amount of taxes determined to be due an overpayment may be generated on your account. Repair or Replacement of Failed Cesspool or Septic System Credit (Title V) Life Sciences Company Credit - Alternative Refundable Amount Income Tax Paid to Another Jurisdiction Credit Repayment of supplemental unemployment benefitsĬertified Housing Development Tax Credit (CHDC)Įconomic Development Incentive Program Credit (EDIPC)ġ0 years after (or 5 years after, depending on circumstances)įilm Incentive Tax Credit (Payroll and production expense credits not used) Out-of-state employee contributory government pension Incapacitated firefighter or police officer income exclusion Submitting an Abatement or Amended ReturnĬertain Business Expenses of National Guard and Reserve MembersĬertain Business Expenses of Qualified Performing ArtistĬertain Business Expenses of State and Local (Free-Basis) Government Officials.Meals or Lodging Furnished for the Convenience of the Employer. ![]()
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