It seems like tax season is always just around the corner. If you're looking for the fastest path to getting your tax refund in the bank, follow our tips below to get your tax refund faster.
What Is a Tax Refund?
A tax refund is like a money surprise from the government. When you've paid too much in taxes during the year, the Internal Revenue Service (IRS) gives you back the extra cash.
Here's how it works: Your annual taxes due to the government are based on your income, deductions, tax credits and other factors. Your tax refund is any amount you've paid to the IRS through payroll withholdings or estimated tax payments above what you owe for the year. You can think of a refund as a bonus you get back for overpaying.
You get your tax refund after you file your taxes and figure out how much you really owe. You can use tax software or hire a trusted tax professional to calculate your annual taxes owed. The faster you get your refund, the quicker you can access funds to boost your savings, pay off debt or meet any other financial priorities.
Tips to Get Your Tax Refund Faster
Now that you know what a tax refund is, let's explore some tips to help you get your refund faster.
Tip #1: File your tax return using e-file
The IRS and most states support electronic filing of your tax return (also known as e-file). Whether you do your taxes or hire a professional, e-file ensures quick and accurate data transmission to the IRS.
While problems are rare when you file your tax return with paper, it's possible that it can be lost in the mail, mishandled by the IRS or scanned into the IRS tax system with errors. With e-file, your taxes get to the IRS almost instantly, and you don't have to worry about the IRS misreading a form. To e-file your taxes, follow these steps:
- • Gather your tax forms and supporting documents. Tax documents arrive by mail or online. Forms may include W-2s from work, 1099s for bank account interest and non-employment income, 1098s for mortgage interest and many more. Consider keeping a folder (both paper and electronic) to collect forms as they arrive.
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- • Choose the right electronic filing option. Most online and desktop tax software allows you to e-file in a few clicks once your tax return is prepared. If you work with a human tax filer, make sure they use e-file to get you the quickest tax refund.
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- • Enter your information accurately. Entering tax information completely and accurately is important to getting a timely tax refund. Errors or omissions can lead to delays in processing your refund.
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- • Submit your tax return. Click the send button, and your taxes are off to the IRS. Keep an eye out for an email or text indicating that your tax return has been received and accepted by the IRS and your state tax authority.
According to the IRS, electronic filers usually get their refunds within 21 days, while paper filers may have to wait four weeks or longer.1
Tip #2: File Your Tax Return Early
Filing your tax return early helps you get your refund faster in multiple ways. First and most apparent is that the IRS can't send your tax refund until it has received and processed your taxes. If you wait longer to submit, getting your refund will take longer, regardless of anything else in your taxes.
The IRS also works with limited resources. With hundreds of millions of Americans filing income tax returns, you may have to wait for other tax returns to process. If there's an issue with your return requiring manual review, you're placed in line after others who filed before you.1
Just as getting somewhere early can help you get a spot near the front of the line, filing your taxes early puts you closer to the front of the queue. Returns are processed in the order they're received.2
To file early, stay organized and get your taxes done as soon as you receive all necessary forms and information from employers, banks, investment brokerages and other sources. You can file your taxes in late January if your return is ready.3
Tip #3: Choose Direct Deposit
Ninety percent of tax filers get their refunds fastest by using e-file and direct deposit.4 With direct deposit, the IRS sends funds directly to your bank account as soon as your taxes are processed and approved.
Unlike a check in the mail, where you have to wait for the post office to deliver it before you can deposit your check into your bank account, direct deposit removes everyone in the middle. When filing your taxes, be sure to use the correct bank account and routing number so your funds go to the right place.
Tip #4: Avoid Errors and Discrepancies
Most of us try to file accurate tax returns, but errors and discrepancies can lead to long tax refund delays. When using tax software, double-check your results before submission. If you use a tax preparer, you should still double-check that everything looks correct before they send your return.
The IRS receives tax information from employers and financial institutions, letting them know what to expect from each tax filer. If you report lower income, for example, the IRS will figure it out and ask for more information or send you a corrected tax return. Sometimes, these discrepancies can lead to delays in processing your refund.5
However you file, keep detailed records in case of a dispute or audit. Employers and finance companies make occasional mistakes, and in rare situations you may need to prove your refund is correct.
IRS Resources to Track Your Tax Refund
Getting tax information from the IRS by phone can be slow and inefficient—if you can get through to someone at all. But online tools from the IRS are free and easy to use, so you can look up your tax refund status with a few taps on your smartphone or clicks on your computer.
- • Where's My Refund: The quickest way for many people to check their refund status is the IRS website's Where's My Refund tool. You'll need your Social Security number, filing status and expected refund amount to check your refund status. Information is updated daily.6
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- • IRS2Go mobile app: If you're on the go, you can use the IRS2Go mobile app to check your refund status, among other tax-related needs. Versions are available for Android and iOS devices from their respective app stores.7
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- • IRS online account: Americans can sign up for an IRS online account, which offers access to refund status, tax records, payments and payment history, outstanding tax balances and additional information. IRS accounts are free to create and use. You'll need to sign in with the federal government's ID.me system.8
File Early and Accurately to Get Your Refund ASAP
When you file your taxes electronically and use direct deposit for your refund, your taxes are on the fastest track possible for your unique tax situation. When your tax return is accurate and you file early, you're in the best position to get your refund as soon as possible.
With direct deposit into a Synchrony savings account, your refund can be worth even more. Thanks to competitive interest rates and FDIC insurance coverage, your money is safe and set to grow. Explore our high yield savings accounts, money market accounts and certificates of deposit to learn more.
Eric Rosenberg is a financial writer, speaker and consultant based in Ventura, California. He holds an undergraduate finance degree and an MBA in finance. He is an expert in topics including banking, credit cards, investing, cryptocurrency, insurance, real estate and business finance.
He has professional experience as a bank manager and nearly a decade in corporate finance and accounting. His work has appeared in many online publications, including USA Today, Forbes, Business Insider, NerdWallet, Investopedia, and U.S. News & World Report.
READ MORE: What Should I Do With My Tax Refund?
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