Q: For the past few years, I’ve gotten a pretty big tax refund from the government and I want to get this year’s as quick as I can. Any tips for how to speed up my refund?
A: This answer is brought to you by station WPPW, that spot on your dial for timely tax tips. Haven’t heard of that station? Well, its call letters stand for Watch, Place, Prepare and Wait. But before you tune your dial, grab last year’s tax return and a large, clean envelope.
Take a minute to review last year’s taxes and, on the outside of the envelope, list all the institutions that mailed you tax reporting information last January. As an example, the W-2 from your employer, the 1099 from the bank and interest statements from your mortgage provider. Then add to the list any new tax reports you’re expecting this year, such as a 1099-R from the 401(k) you cashed out during 2009.
Now is also the time to gather the receipts and check stubs you’ve collected all year for charitable contributions, property tax payments, medical expenses and other documents used for itemized deductions. (Don’t itemize? Then proceed directly to W.)
Doing your taxes boils down to four steps: Watch, Place, Prepare and Wait.
Watch the mail for the information to arrive.
Place tax statements in the envelope, as they arrive, and place a check mark on the envelope to record its receipt.
Prepare your taxes as soon as everything on your list has been checked off. To speed up the receipt of your refund, have your taxes E-filed. This electronic filing allows your tax return to be reviewed more quickly.
Wait for your refund to be directly deposited into your bank account.
No tax refund question would be complete without my annual pieces of advice. First, don’t get excited when someone holds your money for a year and then returns it with no interest. Remember, a tax refund is simply your own money being returned to you.
Secondly, don’t be tempted by the refund advance systems that get you your return the same day you file. The only thing worse than letting Uncle Sam hold your money all year, is paying someone to deliver that money to you. You’ve waited an entire year for this refund. So a few more weeks will not be the end of the world.
D. DRUMMOND OSBORN, CFP is a Certified Financial Planner and Director of Wealth Management at OSBORN Wealth Management, a Registered Investment Advisor, where he focuses on investment management, financial planning and trust advisory services. Visit him on the Web at
www.osbornwealthmanagement.com or e-mail him your questions or comments at drummond@osbornwealthmanagement.com.
