Many people don't necessarily look forward to the start of tax season. But if you have reason to believe you need a large refund, you may want to file your taxes to get that money out as soon as possible.
The 2022 tax filing season (during which you'll file your 2021 return) is now officially open. And that means the sooner you file your paperwork and complete your return, the sooner your refund will arrive.
That said, there are steps you can take to speed up that refund and avoid being held back. Start with them to get your cash as soon as possible.
Image source: Getty Images.
1. File electronically.
When it comes to filing your taxes, you have two choices. You can file electronically, or you can go old school and submit a paper return.
If you're used to the latter, you may be inclined to stick with what you know. But this is not really the year to file taxes on paper. If you do, your return will need to be processed manually. And given that the IRS is sitting on a massive backlog through 2021, filing a paper return can significantly increase your chances of getting your refund delayed.
Even when the IRS isn't in the depths of catch-up mode, refunds from paper returns tend to be twice as long as returns filed electronically -- six weeks versus three. And so it pays to file your taxes electronically, whether you file them yourself or use a professional.
2. Sign up for direct deposit.
The IRS is ready to send your tax refund directly to your bank account. You just need to sign up for direct deposit as opposed to a check in the mail, and that alone can make it so that your refund arrives as fast as a few days.
That said, be careful when entering your banking details. If you enter the wrong account or routing number, your refund will likely be returned to the IRS, resulting in a hold up.
3. Avoid making mistakes on your tax return.
Filing an error-free tax return could be your ticket to a fast refund. Or, put another way, if there are errors on your return, your refund could be delayed significantly while the IRS works with you to correct the errors.
Here are some specific mistakes to watch out for:
- Incorrect entry Social security No
- Choosing the wrong tax filing status
- Claiming incorrect deductions
- Copying incorrect information from your W-2 or 1099 forms
If you want to avoid mistakes, give yourself plenty of time to deal with your tax return so you don't rush the process. Also, file electronically. Especially if you take this approach, you are less likely to make a math error.
Get the money you deserve.
Many people think about tax refunds. In fact, it's not a bonus -- it's money you were entitled to last year but didn't accrue up front. And that's why it's important to get that cash as soon as possible, especially if you're struggling with bills. Inflation. By filing electronically, signing up for direct deposit (correctly), and avoiding tax return mistakes, you can set yourself up to get the money you're entitled to sooner -- and avoid the stress that comes with refund delays.
