Where's my 2018 tax refund?
Show. Me. The Moneeeey! We hear you, and we know that feeling!
IRD have begun releasing 2018 tax refunds, which means we've started paying our customers. It's a huge WooHoo for both the people we've already paid and our team here at WooHoo HQ. But those who are still waiting patiently for their money to appear? Not so much.
For most people, mid-June is when to expect IRD to release refund payments. For others, there's a bit more to their individual circumstances which means there's a bit more of a wait for that extra windfall to arrive.
We've put together a short list of common issues that might see your refund take a little longer than most.
1. Working for Families Tax Credit Square Up
The annual Working for Families Tax Credit (WfFTC) square up usually happens around July however some people may be assessed earlier.This square up has to happen before IRD will release tax refunds to anyone receiving WfFTC.
If you received WfFTC during the last tax year, make sure you keep us informed about any changes to your family situation. We're working closely with IRD to make sure you receive the correct family tax entitlements.
2. Other Income
If you indicated on your application that you received other income, interest, dividends, then we'll need some more information from you before we can calculate (and pay!) your refund.
You will have received an email or letter from us outlining exactly what extra information we need from you based on your individual circumstances. Be sure to get that extra information we've asked for back to us as soon as you can.
Once we've got that we'll be able to calculate your refund and SHOW. YOU. THE. MONEEEY!
3. Missing Income
Your income records at IRD may be showing gaps in your earnings. This could be for a variety of different reasons. Maybe you had some unpaid leave to travel or a month off work in between jobs, maybe you were on parental leave, or even studying.
Whatever you were up to at the time, we just need to know what you were up to and how you were financially supported. We've even added a handy list of options to pick from on our website!
Your tax refund can't be calculated until we have this information. We need to have a full and clear picture of your financial and employment situation for the last tax year.
If this applies to you, just sign into your WooHoo account and update us with this information.
4. IR3 Requirement
Generally when you apply for your tax refund, you need to file what's called a Personal Tax Summary (PTS). If there's a bit more to your tax obligations than having PAYE deducted from your salary or wages, you'll probably need to file an individual tax return (IR3).
An IR3 is more complex and detailed than a PTS, and they're often filed by accountants. There are a few reasons why IRD may have determined you're required to file an IR3.
- You're an independent contractor and you've been schedular income instead of wages or salary
- You're a shareholder/director of a company
- You're self-employed or receive untaxed income
- You've received overseas income
If you haven't received your refund yet, and you're required to file an IR3, we're either waiting on more information from you to file your return and get your refund, or we're working with IRD to get this requirement removed.
We will be in touch as we progress your tax return, however it could take up to 6 weeks.
5. Account Under Review
Seeing the words 'Account Under Review' is probably one of the scariest things to see on your application while you're waiting to receive a tax refund.
Don't fret though, it's not as scary as it sounds. Put simply, it means that IRD needs time to look into your account.
The most common reasons for the account being under review are:
- You're receiving Working for Families Tax Credits
- You have a student loan
- Your income data isn't complete or correct
- Your refund is over $2,500
It takes IRD around 9 weeks to finalise most reviews. In some cases IRD may take additional 15 days when a referral needs to be sent. A lot of the logistics around this process are out of our control, making the ability to give exact timeframes pretty tricky.
Rest assured that if you're a WooHoo customer, we'llbe in direct contact with IRD and try our best to speed the process up.
After IRD finish their review, we can access your refund. What's even better is that we can it onto you the day we get it. We'll send you an email or text message (or both!) the day we transfer it into your bank account or post you a cheque.
6. You haven't confirmed for us to process your refund this year
If you haven't given us the go ahead to process your tax refund this year, get in quick!
When you apply for your tax refund with us, part of the process is that we become your tax agent. Being your tax agent means we have your permission to act on your behalf at IRD, and access your IRD details so that we can calculate your tax refunds super fast and extremely accurately.
But even though we're your tax agent until you tell us not to be, IRD doesn't allow us to process your refunds automatically each year. We need your explicit permission for every new tax year.
Along with getting your permission to get your tax refund each year, we also need you to update us on your income and personal situation each new tax year. This just makes sure we have all the details we need to accurately calculate your tax refund and get back every dollar you're entitled to.
If you haven't confirmed with us this year, sign into your WooHoo account and do it now! It takes 5 minutes tops, and you should find out what you're owed as soon as you're finished. WooHoo!
Need a hand?
If you think any of these components might be affecting your tax refund, get in touch! The sooner we can help you get it sorted, the faster you could see money in your account.
Chat with our support team right here on our website. We're here to help!