What Payment Apps Allow You To Receive IRS Direct Deposit for Your Tax Refund?
The IRS has been urging taxpayers to set up direct deposit for faster, more secure receipt of their tax refund in 2022. But for the more than 7 million Americans who are “unbanked,” which means they do not have a checking or savings account established in their name at a bank or credit union, setting up direct deposit presents yet another challenge.
Fortunately, the IRS advised taxpayers that many reloadable debit cards, including those that accompany popular payment apps, can also receive direct deposits from the federal government. This includes stimulus payments and tax refunds.
Square’s Cash App, PayPal and Venmo payment platforms all permit receipt of government stimulus funds and tax refunds.
How To Set Up Direct Deposit With Cash App
To set up direct deposit with Cash App, you’ll have to activate Cash Card in the app. This provides you with a routing number to receive direct deposits. You can use the Cash Card online or in stores that accept Visa debit or credit cards as a form of payment.
You can also use Cash App Taxes to file your 2021 federal and state tax returns, Fingerlakes1.com reported. You may receive your tax refund up to two days faster by filing electronically and setting up direct deposit through Cash App.
How To Set Up Direct Deposit With PayPal
Similarly, you can set up direct deposit of your federal tax refund with PayPal by using the account number and routing number listed in your PayPal profile. You will need a PayPal Cash Card and a PayPal Cash Plus account to set up direct deposit and be able to access the funds, according to a news release from the company.
How To Set Up Direct Deposit With Venmo
Venmo also makes it easy for qualified users to accept direct deposit via the payment app. You can apply for direct deposit once you complete the required identity verification. If you are eligible for direct deposit, you can find the account and routing number under the “You” tab under “Settings” in the Venmo app.
Those who don’t have access to a bank or credit union might be those who are most in need of the money from their tax refund. Using one of these popular payment apps can give the unbanked all the advantages of direct deposit. Even if you have access to a traditional bank or credit union, you might opt to have all or part of your tax refund deposited into a payment app for convenience.
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