Receive Your Refund Faster with Direct Deposit
It is tax time! Want your refund faster? Have it deposited directly into your bank account. More taxpayers are choosing direct deposit as the way to receive their federal tax refunds. More than 61 million people had their tax refunds deposited directly into their bank accounts last year. It’s a secure and convenient way to get your money in your pocket faster.
The payment is secure – there is no check to get lost.
Each year thousands of refund checks are returned by the US Post Office to the IRS as undeliverable mail. Direct deposit eliminates undeliverable mail and is also the best way to guard against having a tax refund stolen.
There’s no special trip to the bank to deposit a check! To request Direct Deposit, just provide your preparer with a copy of your check from the account you want the refund deposited into. The check has all the information needed to Direct Deposit your refund.
Direct your refund to multiple accounts
With the new “split refund” option, taxpayers can divide their refunds among as many as three checking or savings accounts and three different U.S. financial institutions. The split refund option, using Form 8888, is also available for paper returns.
Caution: Some financial institutions do not allow a joint refund to be deposited into an individual account. Check with your bank or other financial institution to make sure your direct deposit will be accepted. Also, make sure you have the correct nine-digit routing number and your account number when selecting direct deposit.
Have your tax preparation fees withheld from your refund
* Electronic Refund Check – ERCs are a quick and cost effective method for your clients to receive their tax refund without having to pay their tax preparation fees up front. Federal tax refunds are available as soon as 5 business days due to changes in IRS processing cycles under the new IRS CADE payment system. This system is being phased in by the IRS. This means that during 2012, many ERCs will be available within 5 business days.
* Electronic Refund Deposit – ERDs are a way for your clients with a checking or savings account to receive their tax refund. ERDs are similar to ERCs, except that, when the taxpayer’s refund is received, we deduct all applicable fees and disburse the proceeds to the taxpayer’s personal checking or savings account through ACH direct deposit. ERDs are also sometimes referred to as a Direct Deposit Refund or DDR. No need to return to the office to pick up your refund check.