Any tax preparer will tell you that direct deposit is the fastest, safest way to receive your income tax refund. When a taxpayer combines e-file and direct deposit, the IRS will likely issue your tax refund in as few as 10 days.
Here are four reasons more than 79 million taxpayers chose direct deposit in 2011 when filing taxes:
- Security. Thousands of paper checks are returned to the IRS by the U.S. Post Office every year as undeliverable mail. Direct deposit eliminates the possibility of your tax refund check being lost, stolen or returned to the IRS as undeliverable.
- Convenience. The money goes directly into your bank account. You won’t have to make a special trip to the bank to deposit the money yourself.
- Ease. When you’re preparing your tax return; simply follow the instructions on your tax return or in the income tax software. Make sure you enter the correct bank account and bank routing numbers.
- Options. You can deposit your tax refund into multiple accounts. With the split income tax refund option, Taxpayers can divide their tax refunds among as many as three checking or savings accounts and up to three different U.S. financial institutions. Use IRS Form 8888, Allocation of Refund (Including Savings Bond Purchases), to divide your tax refund. A word of caution: Some financial institutions do not allow a joint tax refund to be deposited into an individual account. Check with your bank or other financial institution to make sure your direct deposit will be accepted. Additionally, Form 8888 should NOT be used to designate part of your tax refund to pay your tax preparer.
Freedom tax is an Orlando accounting firm that is always up-to-date with the best solutions for our federal income tax return clients. We keep up to date with all tax laws to provide professional tax services. If you have any questions regarding taxes, feel free to contact us at 407-344-1012. God bless.