3 Tips for Speeding Up Your Tax Return
With the state of the economy, a lot of people are concerned about their finances, so it’s no wonder than they want to get their tax return back as quickly as they can. When you are expecting money back from the government, you want the money you are owed as quickly as possible. And if you follow these simple steps, you can get your return in less time.
File With E-File for Faster Processing
People who want a speedy refund often choose to file their tax return via e-File. This is when you file your tax return electronically with the IRS, which means your return gets into the system faster as a digital format. This is much quicker than mailing your taxes through the postal service.
The quicker you submit your tax return and it is processed, the earlier you’ll have your tax refund in your hand. E-File expedites the tax return process significantly.
To further accelerate your tax refund, you should e-File and then choose the direct deposit option when the site asks how you’d like to receive your tax return. Picking the direct deposit method means the government will put your tax return immediately into your bank account or credit the funds to a debit card that takes direct deposit. This is much quicker than waiting in a line for a person to write out your check, and then in turn wait for the check to be arrive in via the postal service.
With the e-File and direct deposit options, you can get your tax return deposited into your bank account in as little as week to 10 days. This is convenient as well as faster than other routes, and the IRS website allows you to monitor your tax return status.
Instant Tax Refunds
There are some tax preparation services that advertise getting an “instant” refund on your taxes. The majority of people believe that this means you can just walk into a tax preparation business, file your tax return and instantly walk out the door with your money in hand. But this is very misleading — what these “instant” refund places do is cut you a check that is a loan — and that loan is based on what you are expected to receive on your tax refund.
This is what’s called a “refund anticipation loan.” It seems as though you are receiving an “instant” rebate because you walk out their door with money in your hand. But what most people fail to realize is that they are literally being loaned the money, so when your true tax return arrives you are expected to pay back the amount — with hefty interest and fees on top. These extra costs will take away from what you are actually owed from your tax rebate, so unless you are in dire financial straights, it is always better to hold out for a week or two so you can be sure to get the full amount you are owed.
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Ben is one of the most sought after accountants in North Sydney, Australia. He is seen as a true expert amongst by peers and used my many North Sydney accountants use him for advice. Away from work, Ben enjoys riding his motorbike and relaxing at the beach.