Posted by BEST FINANCIAL GROUP LTD

Options for Receiving Your tax Refund

Options for Receiving Your tax Refund

When it comes to claiming a tax refund, multiple options exist. You might be puzzled about which option is right for you. It is best to file your return electronically (otherwise known as efiling). This can be done using specialized software, or you could hire an accountant or tax preparation company to do it. Hiring a professional will mean that the IRS can evaluate your taxes quicker and send your refund out to you. If your refund amount is big, you will require a spending strategy to put the additional funds to good use. The last thing you want is to squander your refund and be left with nothing. Your tax filing preparation can start at the year's end.


Receiving Your Refund by Check

This is a popular option. The IRS simply mails the check to you at your specified address and issues the refund no later than a month and a half after receiving your return. With electronic filing, the process is faster and you will get your check within a few weeks. The IRS website allows you to monitor the progress of your refund application. You should allow an extra couple of weeks for the period that your check and/or return will be mailed out. This is a slow way to get your refund and your check could be lost in the post.


Direct Deposit tax Refunds

Direct deposit is a recommended option. By filing at the start of the year, you will get your refund in less than two weeks. Filing by mail slows down this process considerably. You can get your funds deposited straight into a savings, retirement or checking account. Moreover, you can get your deposit divided into a few separate accounts. This method is easier, quicker and highly secure. There is no risk of your check being lost in the post. You can monitor this online as well, so you will be aware of when the deposit has been processed.


Anticipation Loan tax Refunds

Another way of receiving your tax refund is via an anticipation loan. Sometimes, this is called an instant refund or rapid refund. Companies will offer to process your refund within a couple of days, in exchange for an exorbitant fee. It is foolhardy to pay such a high price to get your refund a little bit quicker. Avoiding this option will save you a lot of money, so you should do this if you can.


Prevention is Better Than Cure

Once you have received your refund, consider how to avoid getting one next year. If money is tight, try to adjust your withholdings so you will not require a big refund by the year's end. This will help you to meet your monthly expenses. Speak to an accountant if your circumstances change and you qualify for Earned Income Credit though, to make sure that you don't owe anything. McCool's Tax Service offers tax preparation services for families and individuals. Contact them today on 717-215-0234 for an efficient, accurate, friendly service at an affordable price.


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