Five Tricks to Getting a Fast Tax Refund

If you get money back in the form of a tax refund every year or if you expect to have a check coming your way this year from the IRS, you’re probably eager to get that check into your bank account as quickly as possible.

If you’re in the habit of getting a tax refund every year, you may need to adjust the amount of withholding coming out of your paycheck. Every dollar you get back above and beyond the standard tax credit dollars written into the tax code represents an interest-free loan that you made to Uncle Sam. So while getting that check is nice, keeping more money from each paycheck might be even better. Here are some things to keep in mind to get the money sent your way as quickly and efficiently as possible.

Gather Your Information: The end of January and first half of February is a time to pay extra attention to what’s coming in the mail every day. Almost every document that you receive will be in an envelope that is clearly marked, “Important Tax Documents Enclosed.” You should have one folder, envelope, or gathering place for these forms and keep them together as they arrive. The types of forms that belong in this folder include W-2 forms, 1099’s to record interest, dividends, and capital gains, a form 1098 from your mortgage company, and other similar documents. Having this information together and accessible is vital to a quick tax refund.

Track Your Deductions: There are two keys to maximizing your deductions. The first is to understand the types of things that you can deduct. Keep track of things like charitable donations (cash, clothing, vehicles, and anything else you might donate that has value), energy efficient improvements to your home, college tuition, childcare expenses, business expenses, medical expenses, and other related items. It’s easiest to get in the habit of tracking these items throughout the year so that when you sit down to file your taxes, all of the information you need is at your fingertips.

Set Time Aside: Preparing taxes takes time whether you take that task on yourself or hire someone else to do it. The quickest refund will come if you’re comfortable filing taxes on your own, but it’s more important to be accurate than it is to be fast. If you work with an accountant or a tax preparation service, make an appointment as soon as possible and force yourself to have all of your preparations in order by your appointment date.

Embrace Technology: It’s easier than ever to file your taxes electronically and if your goal is a fast return, electronic filing is always going to be faster than snail mail. You can also get money into your hands quicker if you establish a direct deposit from the IRS to your bank account rather than asking for a paper check—over 73 million taxpayers received their refund via direct deposit in 2008.

Keep Records: You should keep at least seven years worth of tax returns in case of an audit or other situation that might require you to show the accuracy your of tax filing. Some future loan or employment applications might ask you for a few years worth of records related to your tax returns and you’ll save yourself a lot of time and stress if you have everything in one place.