HomeFinanceTax:  Rapid Speed of Refund: Preparing Tax Returns

Refund Checks in Rapid Speed: Tax Time

Because so many taxpayers often end up getting refunds after filing their tax returns, many people seek a rapid tax refund to get the extra money even faster. Although it may seem like the extra, usually unexpected, money is the bonus in itself, many people cannot seem to wait the few weeks it takes to receive the refund in the normal period of time. As a result, people are always looking for faster ways to get refunds, and businesses continually look for ways to capitalize on this consumer demand. Depending on how fast someone needs the money, there are a few different options for a rapid tax refund.

Rapid Tax Refund Options

As a result of consumer demand, there continues to be an increasing number of options for a rapid tax refund. Some of these options are quicker than others, yet all tend to be quicker that sending in the traditional paper returns at the last possible moment. Many of the ways people get rapid tax refunds actually cost them money, decreasing the amount of refund actually received. However, there are some options that are free to taxpayers, although the speed of receiving a refund is not quite as fast.

One of the most common ways currently of receiving a rapid tax refund is filing tax returns electronically. Because it takes less time and is less frustrating to file online, people will often take the time to complete their taxes sooner. Additionally, because the tax information is already in the computer system, there is less processing time in the IRS, and taxpayers often receive refunds in eight to ten days, instead of eight to ten weeks. Another way to get a rapid refund that seems too simple and obvious to even note is preparing tax returns early. Most people receive all the necessary tax forms by the end of January, and preparing tax returns at this time results in faster refunds. Additionally, the IRS is not as flooded with tax returns as they will be closer to the deadline, so there could be less processing time.

Another popular but dangerous way to get a rapid tax return is with tax refund loans. Some tax preparation companies, like H&R Block, as well as other loan companies offer immediate tax refunds in the form of loans that will be repaid when the refund money is received from the IRS. Although this option is incredibly tempting, especially to those who really need the money, it is not really worth it because the interest rates, even for such a short period, are so high. In many cases, interest rates for immediate tax refunds are over 180%.

Tax Articles

More Tax Info