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View Full Version : Getting Ready for Tax Time



Jagella
01-08-2012, 09:56 AM
Hello friends:

As we should know, April 17, 2012 is this year's deadline for filing your federal income tax return (unless you have filed an extension of time to file). Filing a federal income tax return can be an difficult job for many people especially if your return is complex and you owe taxes.

To complete the preparation of your tax return, you have several options. You can prepare a paper return and mail it in to the IRS along with any payment if you owe taxes. You can also file your return electronically using the IRS's free-file or use third-party tax-preparation software. You can also use software to print your completed return and mail it in to the IRS. In any case, if you are due a refund, you can request a direct deposit into your bank account or receive a check in the mail.

The problem with tax refunds is that the wait may be too long for some people. If you file a paper return and opt for a direct deposit or check you might wait three to five weeks for direct deposit or four to six weeks for a check. Electronic filing is much faster, but you may still need to wait eight to fifteen days for a direct deposit and fifteen to twenty-two days for a check.

To help tax payers receive refunds sooner, some tax-preparation firms offer "refund anticipation loans (RALs)." RALs might be negotiated through a bank that has partnered to work with the tax-prep firm to offer customers these loans. The loan amount is based on the expected income-tax refund. Loan fees are charged by the bank for the loan. If the customer's loan request is granted, she or he should have the refund money in twenty-four to forty-eight hours. Note that the loan is not guaranteed by the bank, and if the bank declines your loan, you may need to opt for the amount of your refund being placed by the servicing bank into your account or releasing a check to you in eight to fifteen days. If you don't pay your preparation fees upfront, then those fees can be deducted from your loan amount.

Finally, note that your tax refund may not be issued to you if your student loan(s) is in default or you owe back taxes.

Anyway, what I'm wondering is what tax payers feel about the federal, state, and local tax systems in the US. Do you feel that the services offered by the tax-prep firms are adequate for your needs, or do you think you'd prefer additional or different services? How many of you do your own taxes? How many of your prefer paper returns and how many of you like to file electronically? Do you use software?

Thanks!

Jagella