Tips for a Quicker Turnaround
Getting your tax refund is an exciting event, but waiting for the money to arrive can be frustrating. Lucky for you, and many others in the same boat, there are several strategies you can use to get your refund faster.
Why Is It Important?
Receiving your tax refund sooner can have several important benefits such as providing much-needed financial stability and peace of mind. With the money in hand, you can take care of outstanding debts, build up your savings, or make a significant purchase. This can be particularly useful if you have been struggling financially and need to get your finances back on track. Due to the current state of inflation, a significant portion of the American population is still grappling with financial hardships. A recent study conducted by Credit Karma indicated that 30% of Americans will rely on their tax refund to pay for necessities. This number is even higher among the younger generations, with 40% of Gen Zers and 46% of millennials claiming that their tax refund will be crucial to their financial stability.
Here are the best strategies for reducing your wait time and getting your money faster:
Strategies to Receive Your Return Sooner:
Filing your taxes electronically, also known as e-filing, is one of the quickest and most accurate ways to get your tax refund. The IRS processes e-filed returns much faster than paper returns, and it reduces the likelihood of errors that can delay your refund. Sending a tax return in the mail does not always guarantee that it will make it to its desired destination.
Use Direct Deposit
If you opt for direct deposit, your refund will be deposited directly into your bank account. This method is not only faster than receiving a paper check, but it is also more secure. According to a press release from the IRS, you will have the flexibility to distribute your tax refund among one, two, or even three accounts of your choice. And if you don’t have a checking account, don’t worry; there are alternative options available for direct deposit. Direct deposit is now also accessible even if you have filed your returns after the due date.
Check Refund Status
You can check the status of your refund by visiting the IRS website or using their mobile app. This will give you an idea of when to expect your refund and help you detect any issues that could potentially delay your refund. Checking your refund status could be the difference between solving an issue and getting that refund on time.
Get W-2 ASAP
To file your taxes, you will need a W-2 form from your employer. This form reports your earnings and taxes withheld for the year. Try to get this form as soon as possible, so you can file your taxes and get your refund quickly. If you have multiple sources of income, be sure to get the proper paperwork from each of your employers.
Make sure to double-check your return for errors and omissions. You must sign and date your return and include all the necessary information, such as your Social Security number and the correct bank account information for direct deposit. Any incorrect information will create a major setback and delay when you receive your refund.
Avoid Filing Early
While it may be tempting to file your taxes as soon as possible, it is recommended to wait until you have received all of your tax documents, including your W-2. Filing early can increase the chances of errors and delay your refund. The deadline for 1099s this year was set for the 2nd of February; however, many issuers failed to meet it, according to an article by Forbes. Most 1099s typically make their way to their intended recipients by the conclusion of February, so one may be missed if you file early. Be sure that you have all of the necessary documentation before you file.
Patience Will Pay Off
By following these tips, you can get your tax refund faster and start enjoying your hard-earned money sooner. Remember to be patient, as the IRS is processing a high volume of returns, but by following these strategies, you can ensure your refund is processed quickly and accurately.