If the IRS is hanging onto your money, then you’re apt to want it back as soon as possible. That’s what a tax refund represents.
Contrary to what you may have been led to believe, a tax refund isn’t a form of free money. Rather, you get a refund due to paying the IRS too much the year before. So it’s natural that you’d want that cash pronto. Here are some things you can do to get a faster refund.
1. File an error-free return
Certain mistakes on your tax return may not hold up your refund. For example, the IRS can often resolve math errors on its own.
But if you make a mistake that causes the IRS to reject your tax return itself, then your refund is apt to get delayed. Before submitting your return, make sure you’ve put in the correct filing status and Social Security number. Also, make sure you’re not claiming a dependent someone else has on their return, like an ex-spouse.
2. Get your taxes done well ahead of the filing deadline
The IRS will begin accepting tax returns on Jan. 29 this year. You have until April 15 to complete your taxes, but getting your return in earlier could get you your money faster.
Mark Steber, Chief Tax Information Officer at Jackson Hewitt Tax Services, says, “The easiest answer to getting a refund sooner? File your taxes as soon as you have everything in order. But, additionally, make sure you file your federal income tax return electronically.”
While the option to file taxes on paper still exists, electronic filings are processed much more quickly by the IRS. Plus, with an electronic filing, you may be less likely to make a mistake that causes your return to get rejected.
3. Sign up for direct deposit
You don’t have to wait for a paper check to arrive in the mail when you’re due a refund. The IRS lets filers sign up for direct deposit.
Steber says, “It’s not only the fastest way for the IRS to send you your tax refund, but it’s also the safest option. E-filing and direct deposit avoids the possibility of important items getting lost or stolen in the mail or getting marked as ‘undeliverable’ if an address is incorrect.”
4. Make sure your bank account details are correct
Signing up for direct deposit is a great way to expedite your tax refund — as long as you enter the correct bank account details. But accidentally entering the wrong account or routing number could delay your refund significantly.
In that case, if the IRS attempts to send a refund, it may get rejected by the receiving bank, in which case the agency might have to simply take back its money and issue you a paper check. So review those details carefully before submitting.
You may be waiting on your tax refund to pay off your holiday credit card balance or cover some larger expenses you’ve been putting off, like getting your home or vehicle fixed. So it pays to do what you can to get your money sooner.
But also, you may want to work with an accountant to make sure you’re not having too much tax withheld from your paychecks. You’re better off getting more of your earnings as you go than waiting until the following year to get the rest of the income you’re entitled to.
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