When it comes to tax returns, the U.S. government stays current. Although this is debatable in regard to other matters, it’s true in this sense.
Once upon a time, after filing your tax returns, you had to wait to receive your money through snail mail – a.k.a. USPS. God knows we love our packages, postcards and holiday mail, but, when it comes to receiving our hard-earned money, services rendered by the government’s postal service simply don’t cut it. We want our money now. We want it today. And thanks to the direct deposit service offered by the IRS, we can receive our tax refund sooner rather than later.
After your tax return is submitted, it takes 21 days or less for your tax returns to be processed. “Processed” is the keyword here because people often expect to receive their money in 21 days or less.
These steps are easy, too. They simply involve supplying the IRS with a voided check and bank account number(s) before filing your refund. In addition to being easy, there are also some advantages to setting up direct deposit with the IRS. The first is…
Speedy Delivery: Actually 3 Weeks or Less
In addition to being processed in 3 weeks or less, you can actually receive your returns in this amount of time with direct deposit.
Unlike regular mail, direct deposit is lightning fast. After the funds are accepted by the IRS, the IRS doesn’t have to transfer your funds onto a paper check, package the check, stamp the envelope and send it. Funds are transferred with a click of a button to one or more bank accounts of your choice (see below).
With direct deposit, you don’t have to wait eagerly by your mailbox for that money you worked your behind off for last year. You just have to wait for that glorious notification on your smartphone: “Deposit Received by IRS.” Your smartphone’s set up to your bank account, right?
Split Your Return Between Multiple Accounts
Whether you’re e-filing or filing by hand, this process is easy. If you’re e-filing, the software or online service you’re using will simply ask you if you want to split your direct deposit between multiple accounts. After selecting yes, it’s just a matter of filling out the fields. If you’re filing long hand with paper forms, the IRS conveniently supplies the necessary document to allocate funds accordingly. This document, called Form 8888, allows you to deposit funds into 2-3 banks accounts. You can also purchase U.S. Series saving bonds with a portion of your refund and allocate the rest to various accounts.
The choice is yours and the options are endless!
Buy U.S. Series Saving Bonds and Deposit into Multiple Accounts
In 2012, 54,000 financially savvy U.S. taxpayers took advantage of the government’s savings bond option. More than $21.5 million was invested in these bonds and they are proven to put money from your tax refund to good use. According to the IRS, these bonds are “low-risk bonds that grow in value for up to 30 years. While you own them they earn interest and protect you from inflation.”
How does this relate to direct deposit? Well, you’re allowed to invest up to $5,000 of your tax refund in bonds. If your refund is greater than this and you want to invest the maximum amount, you can use direct deposit to allocate your remaining funds to one or more accounts. If your refund is less than $5,000, that’s okay! You can still invest a portion of your refund in bonds and use direct deposit to place money in your preferred spending/saving accounts. For more information visit www.taxreturn247.com.au today.
Each year, over a million tax-paying citizens have had identity thieves steal their tax refunds. Unfortunately, this number is growing. If fact, the number of identity theft cases that were tax related was reported in to have increased since 2008 by 650%.Visit my latest blog posted at http://www.1031xchanges.com/5-smart-ways-to-use-your-tax-refund/
Fortunately, the Internal Revenue Service labels refund fraud through identity theft as a top priority. To combat the problem, additional resources have been dedicated to deal with the increasing problem. But, there are also precautions the tax payer can take as an effort to avoid this type of theft.
Are you tired of getting paltry tax refund checks year in and year out? Or, do you owe Uncle Sam every year? Have you heard in the news every other day that some rich senator, young tech media mogul, large corporation or oil billionaire paid little to no taxes? There is a way to get complex tax issues distilled into easy to understand strategies you can quickly and easily use, so you can get a bigger tax refund.
How are identity thieves accomplishing identity theft through tax refunds? Typically speaking, the thief will obtain a victim’s information. Then this thief will file a false tax return, using the victim’s name. They will load the refund onto a prepaid debit card and then vanish with the funds. In order to avoid this, ensure that your computer’s malware and antivirus software protection is up to date. Along with this, be certain that your online tax preparation software URL begins with “https” rather than “http”. A secure connection is indicated by the ‘s’.
Another popular method for stealing identities is for a thief to act as a legitimate, tax preparing professional, or as a company which assists people in settling back taxes. This is generally done through virtual “storefronts” on the Internet. But, rather that helping a person, the thief will make off with personal information or a taxpayer’s refund. In many situations and times, tax professionals are greatly advisable, especially when a person needs support with tax relief. Just be certain that you are using a reputable company when seeking assistance.
When tax time begins, be safe with mail that has sensitive information. Shred it before throwing it away, and be sure you do not throw away papers with sensitive information on it or important warnings. Should you be notified of a tax return you did not file, contact the IRS immediately. Also, remember that the IRS does not contact people through email or via social networks, so be wary of notices received on these sites that claim to be with the IRS. One last advisable step is to order your free annual credit report to be sure that no one has attempted to open a new account using your name.
Knowing the common methods thieves use helps you to protect yourself (and your tax refund). The goal here is getting your refund before the thieves do. Experts agree that filing early is the number one safeguard. Although it may be too late to follow this advice this year, keep it in mind for the next. For more information visit this website today.