Would You Like To Get Your Tax Refunds Earlier This Year?
January 18, 2012
Waiting until April 15 to file your tax return may be fun but according to the IRS the earlier your file, the sooner any potential refund checks can be deposited into your bank account. The reason is simple math. As the volume of returns being submitted to the IRS increases the longer it takes them to process and issue your refund. So how can you shorten the timeframe between filing your return and getting your refund? First, file early - don't wait until April 15! Second, you can shorten the time frame for getting your refund by about three weeks if you electronically file your tax return instead of mailing a paper copy. Finally, have your refund direct deposited into your bank account. This can also reduce the time you wait for your refund by about two weeks.
Another new feature this year is the IRS is allowing taxpayers who have their refunds direct deposited split the refund between up to three different accounts. So, now you can have some of your refund deposited in savings and some in checking. To accomplish this you simply need to complete Form 8888 and submit it with your tax return.
Please contact Eric Smith, CPA and Tax Partner, with questions or for additional information.