Tax Refunds: Direct Deposit Facts

Posted: 10 Apr 2008 | Categories: Finance, Taxes

Every year millions of Americans anxiously await their yearly tax refunds and every year thousands of checks get sent out through the mail. For some taxpayers, waiting around for a check can be more strenuous than having to pay back Uncle Sam; if so; here is some useful information regarding tax refunds:

If you mailed in a complete tax return, your refund check will be issued within six weeks of the date it is received. For electronically filed returns, checks are issued within three weeks after the acknowledgement date.
Refunds from amended returns can take up to 12 weeks to be issued after being received. Injured spouse claims may take even longer, depending on the circumstances.
There are two options available to taxpayers for receiving their federal tax refunds. Refunds can be sent by paper check through the mail or direct deposit (electronic fund transfer) into a savings or checking account.
As of the 2006 tax year, taxpayers using the direct deposit option can have the total amount of their refund divided into as many as three separate accounts. As an example, a taxpayer can divide their refund as they wish into their checking, savings and retirement account. The minimum amount that can be deposited into each account is $1.00.
If you plan to divide your tax refund into separate accounts you will need to fill out Form 8888, labeled “Direct Deposit of Refund to More Than One Account,” when choosing their refund option. However, taxpayers filing Form 8379 do not have the option of dividing their refunds.

Facts about Direct Deposit:

More than half of the federal tax refunds are received through direct deposit.
Direct deposit has been around for 30 years.
More than 61 million people had their tax refunds deposited directly into their bank accounts in 2007.
Direct deposit can be also be used with prepaid card accounts.
Using direct deposit can avoid undeliverable checks returned to the post office and the possibility of lost, stolen, or forged checks.
Direct deposit is simple, safe, and convenient.

The Perfect Alternative to a Checking Account!

How to Receive Direct Deposit:

To receive your tax refund by direct deposit you will need to provide the following information on your U.S. Individual Income Tax Return (Form 1040).

Routing Number

Provide the routing number of the financial institution that holds your account. You can use a check to verify this number or contact your bank to get it.

Account Number

Provide the account number of the account you wish to have the check deposited into. Contact your bank if you don’t have it.

Type of Account

Indicate whether the account you indicated is a savings or checking account.

Denied a Bank Account?

How to Check the Status of Your Refund:

Online

Visit www.irs.gov and click the “where’s my refund” option. To check your status online, you will need to provide your Social Security number, your filing status, and the exact whole dollar amount of the refund indicated on your tax return.

Phone

Reach the Refund Hotline by calling 800-829-1954. Allow four (4) weeks after you mail your return before calling the hotline. When you call, you will need to provide your Social Security number, your filing status, and the exact whole dollar amount of the refund indicated on your tax return.

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