Here are FOUR Reasons to Use Direct Deposit for Your Tax Refund

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.