Work Carefully to Get Your Money Faster
For many taxpayers, their IRS refund is like a forced savings account. Lots of people use the money from their tax refund to pay off bills, make a large purchase or take a vacation. But there are mistakes that can be made when filing your tax return that could delay that refund from getting back into your pocket. Here are some of the most common mistakes you can avoid in order to get your refund as quickly as possible.
File as Soon as Possible
The earlier you file your taxes, the faster your refund will get back to you. It only makes sense; the fewer returns the IRS is working at one time, the quicker they can review and get the money out the door. Wait until midnight on April 15th to file and your return will be one of thousands that need to be reviewed all at once, leading to a delay in you getting your money.
Be Sure Your Deductions are Legitimate
Of course you want to reduce your tax bill and get the most money back. However, if you take liberties with your deductions or take credits you don’t qualify for the IRS will scrutinize your return more closely. Any deductions that seem questionable will slow down the process and the IRS may require you to show proof of your deductions, further slowing down your refund.
Be sure you’ve kept documentation for your deductions and only take those you are sure you qualify for. An Online tax preparation site will ask you pertinent questions in plain language, which makes it easier to know if you can take a deduction or not. It will also transmit information electronically using information you provide, reducing or eliminating the need to mail the paper copies of these forms to the IRS.
Be Sure Personal Data is Correct
It sounds basic, but thousands of returns are rejected each year or refunds sent to the wrong place because of missing or inaccurate entries in the taxpayers personal information. Double-check all names, addresses and social security numbers on your return, including those of any dependents. This is much easier when using an online tax site because the program will flag any missing information and require you to go back and correct it before submitting your return.
Use an Online E-File Provider
Tax preparation web sites are much more accurate than doing your taxes by hand the old-fashioned way. The site keeps up to date with all the tax changes each year and asks you questions in plain language, making it easier and faster for you to complete your tax forms. You will also receive your return more quickly using an e-file provider because your forms are transmitted electronically and you can choose to have your refund deposited directly into your bank account, instead of waiting for the IRS to issue a check. It can take six to eight weeks for the IRS to issue a refund in check form, but only two weeks to issue an electronic payment directly to your account.
Follow these simple tips above and you will be more likely to avoid delays in your tax refund and get that money back in your pocket more quickly.