4 WAYS THE IRS SAYS YOU CAN SPEED UP TAX REFUNDS

Tax season can feel like a drag, especially when you’re eagerly waiting for your tax refund. But did you know there are a few tricks to help speed up the process? Here’s what the IRS recommends to get your tax refund quicker.

For You: A Look at Tax-Filing Options and Costs

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File Electronically

The fastest way to get your tax refund is to file your taxes electronically. According to the IRS, electronic filings are processed much faster than paper returns. While paper returns can take six to eight weeks to process, electronic submissions can shorten this time to just three weeks — perhaps less in some cases. Plus, filing electronically may reduce the risk of errors, which can further delay your refund.

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Choose Direct Deposit

When you file your taxes, opt for direct deposit to receive your refund. It’s the quickest way to get your money, as the IRS can deposit your refund directly into your bank account. This method eliminates the waiting time for a check to arrive in the mail and the additional time it takes for that to clear once deposited. The IRS states that combining e-filing with direct deposit is the fastest way to receive your refund.

Ensure Your Return Is Error Free

One of the reasons tax refunds can be delayed is errors on the tax return. Before submitting your taxes, double-check all your information. Ensure your Social Security number is correct, your filing status is accurately reported and all income and deductions are properly documented. The IRS emphasizes the importance of accuracy in tax returns to avoid processing delays.

Respond Quickly to IRS Requests

Sometimes, the IRS needs more information to process your tax return. This could be due to discrepancies or missing information. If the IRS contacts you requesting additional details, respond as quickly as possible. The faster you provide the required information, the quicker the IRS can continue processing your return and issue your refund.

How Long Will It Take To Get Your Refund?

The time it takes to receive a tax refund can vary, but the IRS provides some general guidelines to help taxpayers set their expectations. According to the IRS, most refunds are issued within 21 days of the tax return being received, especially for those who file electronically and choose direct deposit for their refunds. This is the quickest way to get your refund, as electronic filing reduces processing time and direct deposit eliminates the wait for a check to be mailed.

For those who file paper tax returns, the process might take longer. The IRS estimates it will take about six to eight weeks for these taxpayers to receive their refund after the return has been mailed. This longer timeframe accounts for the additional time needed to manually process paper returns.

It’s important to note that these are general estimates. Your refund may be delayed if your tax return requires additional review for reasons such as errors, incomplete information or the need for further verification. Additionally, certain tax credits, like the earned income tax credit (EITC) or the additional child tax credit (ACTC), can cause a refund to be delayed as the IRS cannot issue these refunds before mid-February.

Taxpayers can check the status of their refunds using the “Where’s My Refund?” tool on the IRS website or through the IRS2Go app. The tool is updated once daily, usually overnight, so you can see when your refund is processed and when to expect it in your bank account or mail.

Ways To Increase Your Tax Refund

Are you trying to maximize your tax refund? While the amount of your tax refund is primarily determined by your income and how much tax you’ve already paid, there are a few things you may be able to do to increase the size of your refund. 

Maximize Deductions and Credits

Deductions reduce your taxable income, while credits reduce your tax bill dollar for dollar. Some common deductions include charitable donations, home mortgage interest and educational expenses. For credits, look into the earned income tax credit (EITC), child tax credit and education credits like the American Opportunity Credit. Each of these can reduce your tax liability and potentially increase your refund.

Contribute to Retirement Accounts

Contributing to retirement accounts not only sets you up for a secure future but can also increase your tax refund. Money put into traditional IRAs or 401(k)s is tax deductible, meaning it reduces your taxable income. The more you contribute, the lower your taxable income, potentially leading to a larger refund. Remember, there are limits on how much you can contribute each year, so plan accordingly.

Search for Overlooked Deductions

Many taxpayers miss out on deductions simply because they’re not aware of them. If you use part of your home regularly and exclusively for business, you may be able to deduct expenses related to that portion of your home. This includes a prorated share of rent or mortgage interest, insurance and utilities. Keep meticulous records throughout the year so you can take advantage of these opportunities to lower your taxable income and boost your refund.

Take Advantage of Health Savings Account Contributions

If you have a high-deductible health plan (HDHP), you’re eligible to contribute to a health savings account (HSA). Contributions to an HSA are tax deductible, and the funds can be used tax free for qualified medical expenses. Maximizing your HSA contributions can reduce your taxable income and increase your refund.

Next Steps

To receive your tax refund as quickly as possible, always file electronically and choose direct deposit. If the IRS reaches out, make sure to respond promptly so your return is processed as fast as possible. Remember, it’s always a good idea to consult with a tax professional or use reputable tax software to ensure you’re taking advantage of all of the deductions and credits you’re entitled to.

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This article originally appeared on GOBankingRates.com: 4 Ways the IRS Says You Can Speed Up Tax Refunds

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