As you prepare for the 2017 filing season, you should consider 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.
IRS Direct Deposit:
- Is Fast. The quickest way to get your refund is to electronically file your federal tax return and use direct deposit. Even if you file a paper return you can still use direct deposit.
- Is 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.
- Is Easy. Choosing direct deposit is easy. For paper returns, the tax form instructions serve as a guide. Just make sure to enter the correct bank account and routing number.
- Has Options. You can split a refund into several financial accounts. These include 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. Do not use this form to designate part of a refund to pay tax preparers.
You should deposit refunds into accounts in your own name, your spouse’s name or both. Avoid making 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. Check with your bank for direct deposit rules.
NOTE: There is a limit of three electronic direct deposit refunds made into a single financial account or pre-paid debit card. The IRS will send a notice and a refund check in the mail to taxpayers who exceed the limit.
Have questions about your return? Call Wicks Emmett today and set up a meeting to review your return with one of our qualified specialists.