IRS Urges Taxpayers to Have Refunds Direct Deposited: Here’s Why
The IRS outlined the benefits of direct deposit:
- Speed: Tax returns filed electronically get processed faster. Plus, you don’t have to wait for a check to be mailed.
- Security: There’s no risk of your paper check being lost or stolen in the mail.
- Ease of filing: Simply select “Direct Deposit” when you file and make sure to enter your account number and bank’s routing number correctly. You can find your bank’s routing number on any bank statement, at the bottom of a paper check preceding your account number, and, often, on your bank’s website.
- Split your refund into multiple accounts: If you’re looking to save a portion of your refund in a high-interest savings account, use some to fund retirement investments, and keep a bit to treat yourself to dinner and a movie, you can do that easily with direct deposit via Form 8888. The IRS offers the option to split your refund between three different accounts. You can even buy savings bonds with your tax refund using IRS Form 8888.
Where You Can Deposit Your Tax Refund
If you currently have a checking or savings account, you can opt to have your tax refund deposited into one (or more) of those accounts.
If your prepaid debit card has an associated routing number, you may be able to have your tax refund deposited directly onto the card.
Lastly, if you don’t have a bank account or prepaid debit card, your tax preparer may be able to offer an electronic payment option in the form of a prepaid debit card.
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