When you file your taxes, you have options on how to receive your refund. The best way to get it is by direct deposit. Eight out of 10 taxpayers get their refunds by direct deposit. Here are six good reasons why you should do the same in 2016:
IRS Direct Deposit:
- Is Fast. The fastest way to get your refund is to electronically file your federal tax return and use direct deposit. You can still use direct deposit even if you file a paper tax return.
- Is Secure. Since your refund goes directly into your account, there’s no risk of having your refund check stolen or lost in the mail. This is the same electronic transfer system used to deposit nearly 98 percent of all Social Security and Veterans Affairs benefits into millions of accounts.
- Is Convenient. With direct deposit, your refund goes directly into your bank account. There’s no need to wait for your check to come in the mail.
- Is Easy. Choosing direct deposit is easy. When your return is prepared, ask your tax return specialist to direct deposit your refund. Make sure provide the correct bank account and routing number.
- Has Options. You can split your refund into several financial accounts. These include checking, savings, health, education and certain retirement accounts.
- Saves Money. Direct deposit also saves you money. It costs the nation’s taxpayers more than $1 for every paper refund check issued but only a dime for each direct deposit made.
You should deposit your refund into accounts in your own name, your 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. Check with your bank for their direct deposit requirements.
It's your money...
