Optima Tax Relief Recommends Taxpayers choose Direct Deposit in order to get their Tax Refund Faster

Mar 1, 2021 by

Optima Tax Relief | Nolo

Optima Tax Relief reminds taxpayers that the fastest way to receive their tax refund is by filing their tax return electronically and choosing direct deposit.

Direct deposit is the safest and most secure option that taxpayers can use and even have the option to split their refund to have it deposited in up to three different financial accounts.

Using direct deposit helps individuals avoid the possibility that their refund check could be lost or stolen or returned to the IRS as undeliverable. It costs more than $1 for every paper refund issued, but only a dime for each direct deposit.

How to get direct deposit

When filing their taxes, a taxpayer only needs to select direct deposit as their refund method when using a tax software or working with a certified tax preparer. All the taxpayer needs to provide is their accounting and routing number to the financial institution that they want the money wired to. It is advised to double-check the routing and accounting information that was inputted on a tax return in order to ensure that it is going to the correct bank account.

Deposits for refunds must only be made directly into U.S. affiliated accounts that are in the tax filers name, their spouse’s name or both if it is a joint account.

Taxpayers could have their refund applied to their prepaid debit card; many reloadable prepaid cards have an account and routing number that is attached that can be provided to the IRS. Individuals should first check with their financial institution to ensure that their card can be used and also verify the routing and account number.

What to do if you want to split refunds

Individuals who choose to use direct deposit have the option to split their refund with up to three financial accounts which can include a bank or Individual Retirement Account. A portion of a refund can also be used to purchase up to $5,000 in U.S. Series I Savings Bonds.

Taxpayers have the option to split their refund by using a tax software or by using Form 8888, Allocation of Refund. Splitting a refund is typically done because it is a convenient option for most to manage their money.

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