A large part of tax season is determining how you will receive your tax refund. While most people are concerned with how much taxes they will have to pay or how difficult the forms will be to complete, once the process is completed, many are left wondering when they will receive the money they are owed (if they were fortunate enough to be owed money and not owe anything to the Internal Revenue Service (IRS), which appears to be more common).
The IRS has a very quick process for preparing and depositing most refunds into beneficiaries’ bank accounts, but there are ways to ensure that your refund arrives even sooner.
Most people have successfully transitioned their tax filing and refund processes online, but many people continue to file on paper and receive their refunds by mail.
This process could take longer. The IRS explains on their website that combining direct deposit with electronic filing is the fastest way to receive your refund. There is no possibility that it will not be collected, lost, stolen, or destroyed.”
Why the IRS encourages online filing and tax refund
Here are some of the reasons why you should file your taxes online:
- It’s an easy process. When you do it by hand, you must know what to look for and what applies to you; however, when you file online, the tax software walks you through the process, asking questions to help you file a complete and accurate tax return and claim any credits and deductions for which you are eligible. It is much easier than filing a paper tax return by mail, and if you understand your situation, you can do it without the assistance of a tax preparer.
- If your income meets the qualifying thresholds, you can file for free through the IRS Free File program. Nonetheless, there are options for those earning more than the threshold, as well as other programs available through the IRS network. If you make more than the income limit, you can use Free File fillable forms. Many taxpayers may also be eligible to have their taxes prepared and filed electronically for free through the IRS Volunteer Programs, which would assist those who have more complicated returns to file in ensuring that no mistakes are made; however, spots fill up quickly, so be sure to explore this option as soon as possible if it is something you are interested in.
- It is a convenient way to file because you can e-file from home, a mobile device, or have your tax preparer e-file your return. The only thing you should be wary of is using unknown and insecure devices; however, as long as you have your IP PIN and delete all personal data from an unknown browser, you should be fine.
- It’s a safe method. The days of easily hackable government websites are long gone; today, the IRS uses modern encryption technology to protect you from identity theft, such as the aforementioned IP PIN and other security measures that ensure your data is secure.
- By filing electronically and selecting direct deposit, you will usually receive your refund in less than 21 days, which is much faster than waiting for a paper check.
- When filing electronically, you have the option to make an electronic payment. If you owe taxes, you can electronically file early and set up an automatic payment from your bank account on any day up to and including the filing deadline. You can also schedule an electronic payment through the IRS. Direct Payment. This ensures that you have enough funds in your accounts to cover the expense and that you are not penalized by your bank for writing checks that cannot be paid.
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