As tax filing season quickly approaches, it’s important to know your options when filing your federal tax return.  One of those options includes how you want to receive your tax return refund. You have two options when receiving your IRS tax return refund. You can either get it via check mailed to you or through direct deposit with your bank. The easiest, fastest and safest way to receive your refund is through direct deposit. 80% of tax payers choose direct deposit each year because of the simplicity of it. Direct deposit is free and it allows you to deposit your refund in up to 3 different bank accounts.

Direct Deposit is the best option because it’s:

• Faster- The quickest way for you to receive your refund is to file your tax return online and use direct deposit. You are also given the option to file a paper return and still use direct deposit.
• More Secure- Using direct deposit is the more secure way to receive a refund since there is no risk of having a paper check stolen or lost. The electronic transfer system that is used also deposits nearly 98% of all social security and Veterans Affairs benefits into millions of accounts which shows how trustworthy it is.
• Easier- Direct Deposit is the easiest way to receive a refund. With e-filing, just follow the instructions in the tax software. For paper returns, the tax form instructions serve as a guide. Make sure to double check that you entered the correct bank account and routing number.
• Got Options- Taxpayers have the option of splitting a refund into several financial accounts. Use Form 8888, Allocation of Refund, to deposit a refund in up to three different accounts. This form should not be used to designate part of the refund to pay the tax preparers.

To be able to choose the direct deposit, select that refund method through whatever tax software you are using to file your tax return. You will need your bank account number and routing number to complete this. Make sure if you are having a tax professional prepare tax returns for you, that they know you would like your refund through direct deposit. Direct deposit is available to all tax payers whether they file electronically or by paper.

Taxpayers should only deposit refunds into accounts in their own name or the name of their spouse. It is best that you avoid making a deposit into accounts owned by others. Some banks may require both you and your spouses’ names on the account to deposit a tax refund if you filed a joint return. There is also a limit of three electronic direct deposits allowed into a single financial account. The IRS will send a notice if you exceed the limit and a refund check will be sent in the mail. It is also a good idea to check with your bank to see what their direct deposit rules are.

You can track the status of your return on the IRS website by using the “Where’s My Refund?” tool at IRS.gov.  Direct deposit gives taxpayers access to their refund faster than a paper check in the mail, and avoids the possibility that your check gets lost, stolen, or delayed through the postal system.  This year the tax return deadline for taxpayers is April 17^th.

If you need help with filing your tax return or have some tax return questions, Polston Tax can help! Our team of tax preparers can help you file your personal tax return and answer any question you may have about your federal tax return. Call us today at 844-841-9857 or click here to schedule your free consultation.