Reasons to Use Direct Deposit for a Tax Refund

Published: 3/27/2018 7:03:55 PM

We recommend taxpayers consider a 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.
  • 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. We enter the correct bank routing number and your account number onto the tax form. We have you sign a bank verification as a precaution.
  • 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.

Taxpayers should deposit refunds into accounts in their own name, their 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. Taxpayers should check with their bank for direct deposit rules.