The IRS begins accepting electronic and paper tax returns on Monday, Jan. 23. But the agency cautions that taxpayers who intend to claim certain tax credits will experience a delay in getting their refund. That’s because a new law requires the IRS to hold refunds claiming the earned income tax credit and the additional child tax credit until Feb. 15 to give the agency more time to verify that the returns are authentic. That means these early filers may not get their refunds until late February.

IRS Commissioner John Koskinen said in a statement, “This year, we had a number of important legislative changes to program into our systems, including the EITC refund date, as well as dealing with resource limitations,” a reference to continued budget cuts that have left the agency shorthanded.  

These filing season snags at the IRS might prompt some taxpayers to turn to other options to get their refund money sooner. But the available alternatives, such as refund anticipation loans or checks, could present other problems. In many instances, say consumer advocates, they carry hidden fees and other high costs.

If instant cash is more a desire than a need when considering a quick refund, consider these alternatives.

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Go electronic

Abandon the traditional paper return and file from your computer. You’ll get the money almost as fast as you would with a refund anticipation loan and get it without paying any loan fees or interest.

In fact, you may not need to pay for anything. An IRS partnership with tax preparers and software companies offers free online tax preparation and e-filing to some taxpayers. For the 2017 filing season, the Free File program is available to individuals with adjusted gross income of $64,000 or less.

The IRS has also expanded the online program to include taxpayers who make more money. Via the Free File Fillable Tax Form option, anyone, regardless of income, can enter their tax data onto online forms and then file them for free directly with the IRS. This is not a tax software program, but simply blank forms you can use via computer, and file directly, rather than filling them out by hand.

The IRS says that any e-filing option you use will get you your tax refund much more quickly than mailing a paper return. Whereas paper filers could wait up to eight weeks for their refunds, most electronic filers can expect their tax checks to show up in their mailboxes in half that time or less.

Direct deposit

Electronic filers who opt for a refund via direct deposit do even better. The IRS says it expects to issue more than nine out of 10 refunds within 21 days, but the fastest way to get a refund is to e-file and choose direct deposit. Even if you file the old-fashioned paper way, having your refund deposited directly into a bank account cuts the time you have to wait for your tax cash. Plus, it’s added protection against lost or stolen refund checks sent via the mail.

Use store financing

If you want your refund to finance a must-have new appliance, store interest rates usually will be better than a refund anticipation loan. Many stores offer free financing for limited time periods. By then, the refund should have arrived and you can use it to pay off the store credit — and pay no interest at all.

Impatience usually wins

Some taxpayers depend on their annual refunds to cover necessary living expenses or help cover education costs. Others, however, look at the annual IRS check as a way to indulge themselves.

Whether the tax money is for needs or wants, financial and tax professionals usually advise patience.

“Theoretically, with electronic filing and quicker turnaround on refunds, the need for tax anticipation loans has become obsolete,” says John L. Stancil, CPA and professor emeritus of accounting and tax at Florida Southern College in Lakeland.

But ultimately, a refund anticipation product is a personal preference, not a fiscal issue, for taxpayers. The prospect of cash a few days earlier appeals to those who value speed over cost.

Companies that offer quick refund options are well aware of such impatience, and that’s why some opportunities survive even as electronic filing increases in popularity.

But if you can squelch your refund appetite for just a few days, then you — and your bank account — will be better off.

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