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:

Source: IRS.gov

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