Tax Identity Theft Awareness Week: January 29 – February 2, 2018
DAY 4 – Reasons to Use Direct Deposit for your Tax Refund
Nowadays, using direct deposit is the fastest and safest way to receive a tax refund. Taxpayers who option out of e-file and choose to file a paper return can still use direct deposit as their refund method.
Direct deposit is beneficial because it eliminates the risk of a paper tax refund being stolen or lost.
FAST – SECURE – SAFE – DIRECT DEPOSIT
The IRS does have a direct deposit limit. The limit is set to fight fraud, identity theft and criminals obtaining multiple refunds. The limit of tax refunds being directly deposited into a single bank account or pre-paid debit card is three. The fourth and subsequent refunds will be paper checks and mailed to the taxpayer or their tax professional with a notice.
You must deposit refunds into an account in your own name, spouse’s name or both. Keep in mind, some banks require both spouses’ names on the account to directly deposit a tax refund. It is best to check the direct deposit rules with the bank first.
With direct deposit, you have the option to split a refund into several accounts. These accounts include checking, savings, health and some retirement accounts. For more detailed information and instructions use IRS Form 8888 or notify your tax professional to complete the form on your behalf when filing your tax return.
https://www.irs.gov/ “Here’s Five Reasons to Use Direct Deposit for a Tax Refund”
https://www.irs.gov/ “Get Your Refund Faster: Tell IRS to Direct Deposit your Refund to One, Two or Three Accounts