It’s that time of year again! Tax season has officially arrived and though we don’t like doing it, it’s kind of required. But don’t fear, Outsiders. While we know it’s a pain, many people can expect a refund this year. And we have the details about how to get a faster refund to kick off the year with a bit of extra cash in your wallet.
Following a backlog from individual tax filers, the IRS still hadn’t processed millions of returns as of December 2021. If you’re in this category, we feel for you.
“Those numbers are just alarming,” said certified financial planner Larry Harris, director of tax services at Parsec Financial.
However, there are some things you can do this year to make sure you get your money faster, per CNBC.
As of Monday, you can file your tax return. If you do this electronically with direct deposit set up, that’s the smartest way to ensure a quick refund. The funds should be processed within 21 days or sooner and you’ll have your tax return.
But there are also some other ways to make sure you get your funds quickly and are on top of your game.
Double-Check Your Forms
First, double-check your return so that there are no errors. If there are, it could mean a significant delay. So check that form twice.
“Half of the problems are from taxpayers not providing accurate information,” said Eric Pierre, an Austin, Texas-based certified public accountant, owner of Pierre Accounting and co-host of the CPA Huddle podcast. “The IRS is a hot mess, but you’re not helping yourself with errors.”
Following last season, especially with the stimulus errors, the IRS is facing a nightmare trying to correct wrong information people filled out on their tax forms. So having someone look it over once you think everything is correct will save you a lot of time.
Further, those who received stimulus checks for dependents will receive a letter in the mail about how to file so that you don’t make mistakes. So if you get something from the IRS, it’s likely those instructions – and you need to keep it handy.
Pay Attention to Tax Return Forms
Additionally, if you plan on using a 1099 or W-2 for income and you’re missing paperwork, you can download the forms for free through the IRS website. This will save you a headache.
Also, and this is an important one, many forms get flagged for fraud or identity theft if people are making small mistakes. This issue will take time to figure out. If the IRS suspects fraud or some other shady business, they’ll send a letter and your money will be delayed. So, again, check all your information before sending the form in.
“A lot of people make errors keying in their apartment number or forget they have moved recently,” Pierre said. “And mail forwarding doesn’t always catch stuff.”
Basically, file electronically with direct deposit if possible, check all your information for errors more than one time – and try not to mess up any addresses or other key information. In the long run, taking these necessary steps will get your money back to you much quicker.
We know it’s not the most fun thing in the world, but seriously, taking a few extra minutes to ensure you filed correctly could save you time, energy and most importantly – your money.