The top method of receiving a refund is by having it direct deposited into your bank account. This is the top way many taxpayers get their federal income tax refund. When combined with electronic filing it makes receiving your refund quick and easy and is one of the safest ways to get your money back. In 2014 almost 90 million people received their refund via direct deposit, this method is expected to be just as popular in 2015. This tax season when expecting a refund consider having it direct deposited into your bank account.
Advantages of Direct Deposit
Convenience – It is quick and easy. When you decide to due direct deposit your refund is placed directly in to your bank account. You can avoid having to wait for a check from the IRS and all the hassles such as going to the bank and waiting in line to deposit the check.
Security – Since there is no actual check being sent to you, you don’t have to worry about it being stolen or lost. You can have peace of mind knowing that your deposit will get to you.
It’s Simple – It is almost like you do nothing at all. You just select the option for direct deposit on your tax program or notate the appropriate fields on your tax forms. Both will include instructions, pretty much just needing your bank account information including your account and routing numbers.
You decide where it goes – Instead of having to deposit one check and then transfer the funds to different accounts you can have the government do it for you. You have the option of splitting your return up between up to three different bank accounts. You can also have the refund directly applied to health or education fund or retirement plans if eligible, in addition to your savings and checking account.
If you are filing jointly with a spouse make sure you check with your bank as some require that both names are included on the account to accept the refund. You should never deposit your refund into another person’s account. As well you should verify that you provide the IRS with the correct bank account information in including account numbers, account type and that the account is in either your or your spouse’s name.