How to Have Tax Refunds Direct Deposited
Did you know there are thousands of checks returned to the IRS from the Post Office as undeliverable mail every year? In 2010, more than 73 million savvy tax payers chose direct deposit and according to the IRS, it is the safest way to receive your tax refund.
There are several reasons to have your IRS refund direct deposited. It is safer, more convenient and easy. The money goes directly into your bank account and saves you a trip to the bank, plus the money is available for withdrawal immediately. There’s also no chance of your refund getting lost in the mail. It is very easy, you just follow the instructions included on the IRS form or check with the IRS website.
- Your routing number and your bank account number will need to be included on your form. The routing number is the first set of digits located on the bottom left of your check or deposit slip. The second set of numbers is your account number. It is very important that you use the correct routing number and account number or your funds could be held up or even misplaced. If you are in any doubt, call your bank to verify the information before sending in your return.
- You can also choose to have your return deposited into more than one account. Just use IRS form 8888, Allocation of Refunds, and you can split your refund between three different accounts and institutions if you wish. Some financial institutions do not allow joint refunds to be deposited into individual accounts. Check with the individual bank to confirm your direct deposit will be accepted.
- IRS Publication 17 is filled with facts and tips to help you get the most out of your refund and is available online or call 1-800-TAX-FORMS.