YES, of course. Direct deposit is the fastest and safest way to receive your tax refund. Here are reasons why you should use direct deposit of your refund:
1. Speed: When you combine direct deposit with e-file, you can receive your refund in as little as 10 to 14 days.
2. Security: The IRS holds millions of dollars in undelivered refunds. Direct deposit eliminates the possibility of your refund check being lost, stolen or returned to the IRS as undeliverable. Thousands of paper checks are returned to the IRS by the U.S. Post Office every year as undeliverable mail.
3. Convenience: The money goes directly into your bank account. You don’t have to make a special trip to the bank to deposit the money yourself.
4. Ease: Simply follow instructions on your return or in the tax software. Caution: Make sure you enter the correct bank account and bank routing numbers; otherwise, there will be one happy fellow looking at a mysterious deposit from heaven. Double check your numbers.
5. Options: You can use a split refund option to deposit your refund into multiple accounts. You can divide your refund among as many as three checking or savings accounts and up to three different U.S. financial institutions. Use IRS Form 8888, Allocation of Refund to divide your refund. 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. Additionally, Form 8888 should NOT be used to designate part of your refund to pay your tax preparer.
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Victor Santos Sy graduated Cum Laude from UE with a BBA and from Indiana State University with an MBA. Vic worked with SyCip, Gorres, Velayo (SGV – Andersen Consulting) and Ernst & Young before establishing Sy Accountancy Corporation in Pasadena, California.
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He has 50 years of experience in defending taxpayers audited by the IRS, FTB, EDD, BOE and other governmental agencies. He is publishing a book on his expertise – “HOW TO AVOID OR SURVIVE IRS AUDITS.” Our readers may inquire about the book or email tax questions at [email protected].
