The IRS (Internal Revenue Service) claims that taxpayers have several options for getting their Federal Income Tax Refund. As a matter of fact, you can receive your refund in a paper check. However, this may take a lot longer because of the time it takes to create it and the time it takes for the mail to deliver it to your mailbox.
Not to mention the fact that paper checks could even be stolen, delayed, or lost due to a natural disaster. Besides, direct deposits are a great alternative to get your tax refund. They are the fastest way if you filed electronically, Also, they are secure and easy to get. Direct deposits can be sent to a single savings or checking account. Another way is to give the IRS a routing and account number associated with your reloadable prepaid card or mobile app.
IRS split direct deposit refund
Some taxpayers may want to split their direct deposit refund among two or even three different accounts. As a matter of fact, it could be with up to 3 different United States financial institutions.
Do not worry because splitting your refund is as easy as ABC. What is more, you do not need to visit an IRS office to get one. In fact, it can be done electronically.
All you have to do is use IRS Free File or any other tax software available. Eight out of ten taxpayers use direct deposit for their refunds. However, some still request a paper check.
If you are one of them, make use of Form 8888, Allocation of Refund (Including Savings Bond Purchases). This will be the way to get a split refund. Remember that it could be split into 2 or 3 accounts.
What are the benefits or advantages of splitting my refund?
It will be a way to save you time in the future. If you get a split refund, you will not have to move your money to a different account. Also, it could be a way to save money.
For example, many taxpayers prefer to send part of the refund money to a savings account. What is more, sending a split refund to your checking account for immediate needs can also be helpful.
Of course, you also benefit from the safety and speed of a direct deposit. Remember that paper checks can take ages if compared to a direct deposit, which can only take 8 days in some cases.
Moreover, the IRS generally sends direct deposits within 21 days. Another question you must be wondering is if your refund has to exceed a certain amount to split it into 2 or 3 different accounts. Actually, the IRS reminds taxpayers that their deposit to each account must be at least one dollar.