Exploring Different Ways To Receive Your Tax Refund
In the earliest day of taxation, you submitted your information and received your refund from the government in the form of a check. But today, that's not how a tax refund works. You can still do it that way, but it's much easier to make use of one of the more common and high-tech options available through new IRS programs and with the assistance of your return prep company.
Option 1: The Old Fashioned Way
There is nothing wrong with mailing your forms and receiving a check back. However, it's by far the longest option and the one that involves the most hassle. You need to wait a week or so for your documents to reach the IRS. Then they'll be placed at the back of the processing queue, which will mean even more of a delay. It takes a lot more manpower to process hand-submitted forms because of the need to enter them into the computer manually. It isn't possible to process them electronically, incurring further expense for the IRS and costing valuable time. Once this is finished, your check needs to be issued and mailed. This process can get very drawn out, taking weeks to be completed.
Option 2: Submitting Your Forms Electronically
Electronic submission has become state of the art for prep companies across the country. Internet security has advanced substantially, ensuring that electronic filing doesn't present any kind of hazard to the data transferred. Your information is just as safe as if it were emailed âEUR" perhaps safer, considering the risk of lost mail and other problems. In addition, once filed your data is received instantly and processed quickly. This expedited system ends up making a big difference because it requires much more limited processing by the IRS. They're able to let computers handle most of the work, only calling in humans for review if necessary.
Option 3: Receive Your Funds Electronically
You can submit electronically and receive a check in the mail, but the fastest option is to make everything electronic. Your bank account information is required, but it's transferred through the same secure connection that carries your tax information and is thus secured in the same way. This process minimizes the time spent, lowering it dramatically from what it was once.
Option 4: A Tax Refund Anticipation Loan
This process can further expedite the receipt of your funds, but will reduce your total received slightly. This has you taking out a loan against what you're expected to receive from the government. You are able to get it sooner âEUR" usually you can leave the office with cash in hand âEUR" but it does incur interest and other fees just like a standard loan.
Option 1: The Old Fashioned Way
There is nothing wrong with mailing your forms and receiving a check back. However, it's by far the longest option and the one that involves the most hassle. You need to wait a week or so for your documents to reach the IRS. Then they'll be placed at the back of the processing queue, which will mean even more of a delay. It takes a lot more manpower to process hand-submitted forms because of the need to enter them into the computer manually. It isn't possible to process them electronically, incurring further expense for the IRS and costing valuable time. Once this is finished, your check needs to be issued and mailed. This process can get very drawn out, taking weeks to be completed.
Option 2: Submitting Your Forms Electronically
Electronic submission has become state of the art for prep companies across the country. Internet security has advanced substantially, ensuring that electronic filing doesn't present any kind of hazard to the data transferred. Your information is just as safe as if it were emailed âEUR" perhaps safer, considering the risk of lost mail and other problems. In addition, once filed your data is received instantly and processed quickly. This expedited system ends up making a big difference because it requires much more limited processing by the IRS. They're able to let computers handle most of the work, only calling in humans for review if necessary.
Option 3: Receive Your Funds Electronically
You can submit electronically and receive a check in the mail, but the fastest option is to make everything electronic. Your bank account information is required, but it's transferred through the same secure connection that carries your tax information and is thus secured in the same way. This process minimizes the time spent, lowering it dramatically from what it was once.
Option 4: A Tax Refund Anticipation Loan
This process can further expedite the receipt of your funds, but will reduce your total received slightly. This has you taking out a loan against what you're expected to receive from the government. You are able to get it sooner âEUR" usually you can leave the office with cash in hand âEUR" but it does incur interest and other fees just like a standard loan.
