We all know that the IRS regularly issues tax refund. This has more to do with the way they assess the federal income tax of individual taxpayer. But of more significance to us is that how we could rightly claim our money back, in full and in timely manner.

But even before we start to contemplate what is the best way to lay our hand onto this refund, it is prudent to note that we can speed up the processing only when we file our income tax return early, and electronic filing is preferred in this respect. Anybody can do this so-called e-filing at home with a computer, or you could also approach a tax adviser for help. Remember the faster the IRS gets to review your file, the sooner you will get your refund.

1. Paper Check

The most convenient choice is to opt for a paper check. This is by far the most common option among taxpayers. For normal filing (or through paper forms), a check can be ready not more than 6 weeks from receipt of your return. E-filing would prompt a faster response, i.e. inside 3 weeks. You can follow the status of your refund through the IRS website, but do factor in a week or two for the check to come through the mail. This is the least efficient option and it also runs the risk of being lost while in the mail.

2. Direct Deposit

Direct deposit is a better choice. For those taxpayers who file early enough, the turn around can happen within 10 days, this is generally applicable for those who choose to do e-filing. As for the accounts to be credited, they could be a checking, savings or retirement account. IRS also allows for multiple accounts deposit (up to three). It is indeed a convenient and efficient mode of receiving option.

3. Tax Refund Anticipation Loan

This refund anticipation loan, as its name implies, is really a loan facility. Loaners are willing to extend the loan amount in just matters of days (sometimes within the same day but they are generally faster than the above 2 mentioned options) but in return the interest levied is ridiculously high. We would usually advise that taxpayers to hold on to a few days more rather than to be sucked into such unscrupulous scheme.

4. Do without a Tax Refund

After evaluating the first three options, this is not much of an option. It may be gratifying to get your rebate early but this is really your money in the first place year, being made on loan to the IRS without any interest. It may be worthwhile for you to be more diligent in working on your income tax return so that there would not be a huge refund at every year end.