Some people use split refunds as a convenient option for managing their money, sending some of their refund to an account for immediate use and some for future savings. Series I Savings Bonds.Ī taxpayer can split their refund by using tax software or by using Form 8888, Allocation of Refund PDF (including Savings Bond Purchases), if they file a paper return. Part of the refund can even be used to purchase up to $5,000 in U.S. Split refundsīy using direct deposit, a taxpayer can split their refund into up to three financial accounts, including a bank or Individual Retirement Account. Tax return preparers may also offer electronic payment options. Veterans can use the Veterans Benefits Banking Program (VBBP) for access to financial services at participating banks. Visit the FDIC website for information on where to find a bank that can open an account online and how to choose the right account. The IRS does not have the ability to accept this information after a return is filed. Have the bank routing and account number when having taxes prepared. Check with the mobile app provider to confirm what numbers to use. They must have routing and account numbers associated with them that can be entered on a tax return. There are mobile apps that may allow for direct deposit of tax refunds. But check with the financial institution to make sure the card can be used and verify the routing number and account number, which may be different from the card number. Many reloadable prepaid cards have account and routing numbers that could be provided to the IRS. Taxpayers may have a refund applied to their prepaid debit card. Many people do not use checks and may find their routing and account numbers on their online bank account or mobile app. affiliated accounts that are in their name, their spouse's name or both if it's a joint account. The IRS reminds taxpayers they should only deposit refunds directly into U.S. It's important to double check entries to avoid errors. Easy to useĪ taxpayer simply selects direct deposit as the refund method when using tax software or working with a tax preparer, and either they or their tax preparer type in their account and routing number. It costs more than $1 for every paper refund issued, but only a dime for each direct deposit. The IRS uses the same electronic transfer system to deposit tax refunds that is used by other federal agencies to deposit nearly 98% of all Social Security and Veterans Affairs benefits into millions of accounts.ĭirect deposit also avoids the possibility that a refund check could be lost or stolen or returned to the IRS as undeliverable. Taxpayers can even split their refund to have it deposited into one, two or three different accounts.Įight out of 10 taxpayers get their refunds by using direct deposit. WASHINGTON - The Internal Revenue Service today reminds taxpayers that the fastest way to get their tax refund is by filing electronically and choosing direct deposit.ĭirect deposit is free, fast, simple, safe and secure.
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