Tax Strategies & Credits

Use Direct Deposit for Faster Tax Refunds

by
Jorge Gomez
on
1/19/2017
Use Direct Deposit for Faster Tax Refunds

When you file your taxes every year and find yourself eligible for a refund, do you run to the mailbox every day, eagerly awaiting that big check? To get your refund in the quickest way possible and eliminate the need to go to the bank to cash it or deposit it, you can opt to have it deposited directly into your bank account simply by going to this IRS website and walking through the filing steps you’ll find there. Though new regulations require that refunds based on the additional child tax credit or earned income credit be delayed until after February 15th, requesting direct deposit will ensure that you get your check much faster than you would if it were to be mailed.

Though speed is clearly the most valued benefit to using direct deposit, there are many other advantages, including:

  • Ease and Convenience – You can either request e-filing online or provide your bank routing number and account number to your tax preparer and they will take care of making sure that the direct deposit is arranged. There’s no need to go to the bank to deposit or cash your check – your refund will simply appear in your bank account.
  • Security – By selecting the direct deposit option, you eliminate all concerns about lost or undeliverable mail or a check that’s in your possession being misplaced or stolen. It is the safest way to get your refund.
  • Flexibility – When you select the direct deposit option, you can ask to have your refund divided into up to three different financial accounts. The only requirements are that the account be either a savings or checking account in a U.S. financial institution that accepts direct deposits. The deposit can be made into accounts that are in either your spouse’s name or your name as long as they are joint accounts – you simply need to provide the account number and the routing number. Allowable accounts include Coverdell education savings accounts, health savings accounts, Archer MSAs, individual retirement arrangements or development accounts, and even passbook savings accounts. You are not permitted to have your tax refund deposited into a third party’s bank account. This is a precaution against tax refund fraud.

Directly depositing your tax refund is not only fast, easy and secure, but it is also a great way to fund your IRA or myRA account. If you would like your tax preparer to make these arrangements for you, make sure that you provide them with the pertinent account information before hand.

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Jorge Gomez

Jorge Gomez

Marketbox Business Analyst was born out of a strong desire to fulfill the needs of the small business market segment with unparalleled tax preparation, accounting and software services. While most consulting firms target large companies, we offer affordable solutions in a customizable system that manages business operations, finances and investments. Based on software and policies & procedures that provide critical information for decision making, problem-solving and day-to-day operations, we are giving small businesses access to trusted, high-quality solutions. Whether you are looking for integrated services or a single tool, we have the knowledge and expertise to strengthen your business.

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