I’m posting this in September of 2011—that means we have over three months before the year is even over. If you’re asking this question now, it means you’re expecting a refund—which is good—but the bad news is you’re not going to see it for quite a while.

Hopefully, here are some answers you’re looking for.

Although the IRS hasn’t posted any official dates yet, generally, the first day that you can e-file a return will be the day after Martin Luther King, Jr. Day—basically the middle of January. Please don’t hold me to that, Congress can always come in and mess things up, but that’s usually the earliest you can e-file.

Last year, because Congress had slowed up the e-filing for lots of people’s returns, folks asked, “Can I just mail my form in before the e-file date if I’ve got everything done?” The answer is “No, don’t.” The IRS will just toss your mailed return in a corner and not open it until they’re allowed to and your return will get processed slower than the e-filed returns so you really don’t want to do that.

What about those loans you can take against your refund? When do they start and who has them? That’s a really good question. Last year, the IRS changed its practice of providing something called a “debt indicator.” If you filed a tax return through a company that issued Refund Anticipation Loans, the IRS would send back information saying whether you had a federal tax levy against you or not. If there was no “debt indicator” then it was safe to assume that the bank issuing the Refund Anticipation Loan would get its money. If a taxpayer had a debt indicator flag, then they wouldn’t get the Refund Anticipation Loan.
The problem is that the IRS refuses to issue a debt indicator anymore so banks aren’t willing to take the risk. Refund Anticipation Loans have virtually dried up. Last year, only one tax business in my area offered a Refund Anticipation Loan but it was limited in scope.

The Advance Refund Anticipation Loans or Christmas Refund loans were pretty much based on the same principal. As of this writing, I know of no one who is issuing advanced money for the 2011 tax year. If anyone is, it’s doubtful they’ll offer that program anytime before Thanksgiving.

Is there anything I can do to get my hands on my tax money? In 2011, probably not: Congress repealed the advanced EITC law which used to allow you to claim your EITC in your paycheck. If you have federal income tax withholding taken from your pay (not Social Security and Medicare, but federal income tax) you can change your withholding so that you get more take home pay. There’s a calculator on the IRS website that can help you figure out how many exemptions to claim. http://www.irs.gov/individuals/article/0,,id=96196,00.html
You’ll want to have your most recent pay stubs and your last tax return handy as you fill in the answers. It’s a pretty good indicator of what your refund will look like come tax season and if changing your W4 could benefit you.

A word of caution: The IRS clamped down on Refund Anticipation Loans because it felt that those loans were harmful to consumers. They basically put the big tax companies out of the loan business because they have to follow the rules. Sometimes, shady guys slip through the cracks. So here’s the warning—if you find a tax business that does refund anticipation loans ask a lot of questions. How long have they been in business? What happens if there’s a problem with your return? How will you get your money? How long will you have to wait for your money? What are the charges for the loan, for the tax preparation, etc.? If you don’t feel safe, if your questions aren’t answered to your satisfaction, then walk away.

You can get free tax preparation from VITA or the IRS. If you have a bank account, you can have your refund direct deposited within two weeks of filing. You’re already going to have to wait for a few months anyway, if you can hold out for just a little bit longer you can save yourself hundreds of dollars—money that you can spend on you, your kids, your rent, etc. Good luck.