As you prepare for the January 29 start of filing season, consider a direct deposit of any refunds due. It’s easy, safe, fast — and the best way to get a refund. That’s why 80% of taxpayers choose it every year.
4 reasons to choose IRS direct deposit:
- It’s Fast. The quickest way to get your refund is to electronically file your federal tax return and use direct deposit. If you use IRS Free File to prepare and e-file your federal return, it’s free.
- It’s Secure. Since refunds go right into a bank account, there’s no risk of having a paper check stolen or lost. This is the same electronic transfer system that deposits nearly 98 percent of all Social Security and Veterans Affairs benefits into millions of accounts.
- It’s Easy. Choosing direct deposit is easy. With e-file, just follow the instructions in the tax software. For paper returns, the tax form instructions serve as a guide. Make sure to enter the correct bank account and routing number.
- It gives you options. You can split a refund into several financial accounts such as checking, savings, health, education and certain retirement accounts. Use IRS Form 8888, Allocation of Refund (including Savings Bond Purchases), to deposit a refund in up to three accounts.
Tip: Deposit refunds into accounts in your name, your spouse’s name or both. Don’t make a deposit into accounts owned by others. Some banks require both spouses’ names on the account to deposit a tax refund from a joint return. Taxpayers should check with their bank for direct deposit rules.
Additional IRS Resources:
- Publication 17, Your Federal Income Tax
- Where’s My Refund?
- Frequently Asked Questions about Splitting Federal Income Tax Refunds
Con: No longer can buy paper I-Bond with refund. (form 8888)