If I Quit My Job Do I Still Get a Tax Return?

Quitting your job does not disqualify you from receiving a tax refund. It is helpful to distinguish between a tax return and a tax refund. A tax return is the set of documents, such as Form 1040, that you are required to file with the Internal Revenue Service (IRS) each year to report your income and calculate your tax obligation. A tax refund is the money you receive back from the government if the amount of tax you paid throughout the year exceeds your actual tax liability.

Understanding Your Eligibility for a Tax Refund

A tax refund is generated when the total income tax withheld from your paychecks is greater than your total tax liability for the year. When you begin a job, you provide your employer with a Form W-4, “Employee’s Withholding Certificate.” This form instructs your employer on how much to withhold from each paycheck for federal income taxes based on your filing status and dependents. The withholding system estimates your annual tax bill as if you will be earning at that same rate for the entire year.

If you leave your job partway through the year and do not have another job, your total annual income will be less than the payroll system’s projection. Because taxes were withheld from each paycheck based on a higher projected annual income, the total amount withheld can be more than what you actually owe on your lower, final income. This overpayment is what leads to a tax refund when you file your tax return.

For example, if your paychecks had taxes withheld assuming a $60,000 annual salary, but you quit after six months and only earned $30,000 for the year, you likely overpaid your taxes. The tax liability on $30,000 is significantly less than the amount withheld based on a $60,000 income, which is reconciled when you file your return.

Information Needed to File Your Taxes

To file your taxes and claim a potential refund, you need a Form W-2, “Wage and Tax Statement,” from the employer you quit. This form details your total earnings from that job and the exact amounts of federal, state, and other taxes withheld from your pay. Your former employer is required to send you this form by January 31 of the year following your departure.

If you have not received your W-2 by mid-February, contact the employer’s payroll or human resources department to request it and confirm they have your correct mailing address. You might also be able to access it through an online employee portal. If you still cannot get the form, you can contact the IRS, who will then contact the employer and can provide you with Form 4852, “Substitute for Form W-2, Wage and Tax Statement.”

Using your final pay stub, you can fill out Form 4852 to estimate your wages and withholdings, allowing you to file your taxes on time. You must gather W-2s from all jobs you held during the tax year, not just the one you left. Any additional income, such as from unemployment benefits reported on Form 1099-G, must also be included when you file.

How to Claim Your Tax Refund

Once you have all your W-2s and other income documents, you claim your refund by filing a federal tax return with the IRS using Form 1040. On the return, you report your total income from all sources, apply any deductions or credits you are eligible for, and calculate your final tax liability. This calculation will show whether the amount you paid through withholding results in a refund or if you owe additional tax.

There are several methods for filing your return, including using tax preparation software or hiring a tax professional. Many taxpayers may also be eligible for IRS Free File, a partnership between the IRS and tax software companies that allows qualified individuals to file their federal taxes online for free. For the 2024 tax year, individuals and families with an Adjusted Gross Income (AGI) of $84,000 or less are generally eligible for a guided software option.