Posted by Brian McCullough
It’s that time of year again, if you can believe it.
I just started working on my taxes this weekend, so I thought I’d do a bit of research for a nice worker/job-seeker friendly tax post.
It occurred to me that we’re all pining away for refunds aren’t we?
Did you know that 3/4ths of Americans get tax refunds every year? And the average refund is around $3000? That’s not chump change!
If you think you could do something useful with an extra few grand in your pocket, then you’re probably also wondering what might be the the fastest way to make that happen.
Well, once again, the IRS is pointing out that the quickest way to get your tax refund money is to choose direct deposit when you file. The IRS has been on this direct deposit kick for many years now. It saves them money. It saves trees.
But it also saves you time and gets your refund into your hot little hands much faster. My accountant told me that if I filed my return today (Jan. 30th) and requested a check by mail, I’d be fortunate to see that check by the end of February. But: according to the IRS, if you enter your direct deposit information when you file your 2011 taxes, you can see the money in your bank account in as little as ten days.
In addition, the IRS is quite flexible:
You can deposit your refund into multiple accounts. With the split refund option, taxpayers can divide their refunds among as many as three checking or savings accounts and up to three different U.S. financial institutions. Use IRS Form 8888, Allocation of Refund (Including Savings Bond Purchases), to divide your refund.
So if you’re getting ready to file your return, make sure to sign up for direct deposit.
Bonus tip: why turn around and spend your tax return? Why not invest in yourself? Put the money into your IRA! It’s bonus money, right? Let it work for you.