Although the filing of the 2010 tax returns started later than usual this year (February 14th), if you will be receiving a Federal tax refund you’re probably ready to have it in your bank account as soon as possible.  Your goal should be to take advantage of every opportunity to accelerate the process and receive your income tax refund as quickly as possible.
Among the options that are available to you are to:
1) e-file – faster processing of your tax returns,  fewer opportunities for processing errors by the taxing authorities, and
2) direct deposit – if you look at the Federal e-file refund cycle chart on this website you’ll see that direct deposit refunds are sent electronically about eight days after the end of the cycle period. Checks are mailed seven days later. Add 5-7 days for in transit mail time and you should conclude that you’ll have your tax refund about 12-14 days sooner if you wisely select the e-file/direct deposit alternative. You can also track the status of your refund via the “Where’s My Refund†section of the IRS website or by calling 1-800-829-1954.
Note: While most states offer a similar option their refund cycle period may not be on par with the Internal Revenue Service.
If your 2010 tax refund is more than $1,000.00 you may want to consider reducing the amount of your quarterly estimated tax payments or your payroll Federal withholding amount using Federal Form W-4 (Employee’s Withholding Allowance Certificate). The instructions are included with the form, including a worksheet for your calculations on the reverse side of the form.
 Additonally, if you owe the taxing authority delinquent taxes or are on an installment payment plan, etc you should expect to have your refund applied to that unpaid balance. If there are any remaining funds due you afterwards that amount will be sent to you.
Here is additional information on this subject : (more…)