Many taxpayers who receive a refund choose to deposit directly. Actually, it is the best way to receive payment for a federal tax refund. It is completely safe and delivers the cash you have the right to, especially when combined with electronic filing methods, quickly and easily. About 95 million taxpayers opted for direct deposits in 2018 and its popularity is expected to continue in 2019.
When you submit this tax season, consider directly placing your refund on your bank account. Four reasons for choosing a direct deposit–It’s so easy, it’s nearly too easy. Almost. Almost. With a direct deposit, your refund is automatically credited to your bank account and you save the steps of actually going to the bank, waiting in line and depositing the check. Security–Since no physical check is issued, you don’t have to worry about it being lost or stolen or waiting to be sent in the mail. Simplicity–Again, almost nothing is done. You just have to choose the direct deposit option in the tax software or check the tax forms section. Both will have detailed instructions, which essentially only require your bank account number and routing.
Choices–you can let the government do it for you instead of transferring your money around. You may decide to divide your refund into three separate bank accounts. In addition to the checking and savings accounts, various pension plans, health or education accounts may be eligible for deposit. You should check with your bank before you decide to deposit directly if you file your tax with your spouse. Some financial institutions require both names to be included in the deposit. In addition, you should never deposit your refund into the account of another person. Always ensure that you have the correct bank account number and that the account is either in your name or in the name of your spouse, if not both.
