IRS Direct Deposit results in faster refunds
WASHINGTON — With the tax deadline right around the corner, the Internal Revenue Service is reminding taxpayers that an electronic direct deposit of your refund into a bank
or another account is the fastest way to receive your money.
A taxpayer can deposit their refund into one, two, or even three accounts.
Eight out of 10 taxpayers receive their refund through direct deposit. It is simple, reliable, and safe.
The IRS uses the same electronic transfer system to deposit tax refunds that other federal agencies use to deposit nearly 98 percent of all
Social Security and Veterans Affairs benefit into millions of accounts. Direct deposit also avoids the possibility that a refund check could be lost or stolen, or returned to the IRS as undeliverable.
Direct deposit is easy to use. A taxpayer simply has to select it as the refund method when using the tax software or indicate it to their tax preparer,
and then enter their routing and account number. It is important to check your entries twice to avoid mistakes.
split refunds
Using direct deposit, a taxpayer can divide their refund into up to three financial accounts, including a bank account or personal retirement savings account.
You can even use part of the refund to buy up to $5,000 in Series I US Savings Bonds.
A taxpayer can split their refund using tax software or through IRSForm 8888,
Split Refund (Including Savings Bond Purchases), if they file a paper return.
If a taxpayer wants the IRS to deposit his refund into a single account, he simply uses the direct deposit line on his tax form.
Some people use split refunds as a convenient way to manage their money,
sending part of their refunds to one account for immediate use and another for future savings.
The IRS reminds taxpayers that they should only deposit refunds directly into accounts
that are in their name, a spouse’s name, or both if it’s a joint account.
No more than three electronic refunds may be deposited into a single financial account or prepaid debit card.
Taxpayers who exceed thislímite (en inglés), will receive a notice from the IRS and for refunds that exceed this limit,
a paper refund will be issued.
E-file plus direct deposit provides the fastest refunds
The IRS also encourages taxpayers to file electronically. Although a person can choose direct deposit regardless of
whether they file a paper or electronically, a taxpayer who files electronically typically receives their refund in less than 21 days.
Taxpayers can check the status of their refunds with the”¿Dónde está mi reembolso?” mobile appsIRS2Go.
“Where’s my refund?”
it is updated once a day, usually overnight, so there is no reason to check more than once a day or call the IRS for information about a refund.
Taxpayers can check “Where’s My Refund?” within 24 hours after the IRS receives your electronic returns, or four weeks after receiving a paper return in the mail.
“Where’s My Refund?” shows progress through three stages: (1) Return Received, (2) Refund Approved, and (3) Refund Sent.
Whether through free File, or commercially available software, e-filing greatly reduces errors on tax returns as the tax software performs the calculations, flags common errors, and prompts taxpayers for information they need. lack.
