The Tax Refund Myth: Why aren’t I getting anything back?
By Marc Sevitz · Updated
Tax refunds arise only when too much tax was paid by the taxpayer because either SARS or the employer was unaware of certain deductions, such as medical aid or retirement annuity fund contributions, when the monthly Pay-As-You-Earn (PAYE) was calculated and paid over to SARS. When tax season comes around and taxpayers complete their ITR12 income tax returns with all their information and the assessment results in an over payment of tax, then a refund becomes due. This is why it is important to complete your return 100% correctly and with all the possible information included, so as to maximise your chance at getting a tax refund. Unfortunately in most cases the PAYE deducted represents exactly the right amount of tax paid and neither SARS nor the taxpayer owe each other anything.
However in the case where your employer doesn’t know absolutely everything about your tax affairs, then submitting your return correctly becomes even more important as you may well have paid too much tax and be due a refund from SARS. Taxpayers should always keep in mind that it is their money being paid back to them, although a surprise refund can feel like a bonus!
To see if you are due a refund, try our free tax refund calculator.
Image by Anastasia Zhenina from Pixabay
