Are you one of the almost 100 million taxpayers who will receive a refund this year? The IRS says that requesting direct deposit and filing your tax return electronically (e-filing) will put that money in your pocket faster and easier.
Every year, more taxpayers find out how safe and easy it is to have their tax refund deposited directly into their checking or savings account. This option is available for both e-filers and paper return filers.
When you file electronically, your refund will be issued within three weeks, about half the time it would take if you filed a paper return. If you also choose direct deposit, you might receive your refund in as few as 10 days.
Last year, more than 46 million taxpayers electronically filed their tax return. People who e-file find it the fastest and easiest way to do their taxes.
The electronic filing program checks for errors or missing information, increasing the accuracy of your return and reducing the need for correspondence with the IRS to clarify errors or omissions. Once your return is accepted for processing, you will receive a confirmation from the IRS.
And you can usually file a state tax return at the same time you electronically file your federal tax return.
Finally, with electronic filing, you can file your return early but wait to pay any balance due by the tax deadline of April 15, 2003.
You might want to reduce the size your refund and put more money in your paycheck throughout the year. You and your employer can refigure your federal income tax withholding, allowing the correct amount to be deducted.
For information on e-filing, check the IRS Web site or consult your tax preparer. You will also find a withholding calculator and worksheet, along with Form W-4, on the IRS Web site.
This daily Tax Tip has been provided by the IRS
Note: These tips are provided to help trigger ideas on ways to minimize your tax burden, not as a substitute for professional advice. There is no "one-size-fits-all" answer - each taxpayer's situation is different. You should contact your tax preparer to determine together how this may affect your unique situation.