Some of the benefits or receiving your refund check via direct deposit may be obvious, while others less so. Let’s take a look at some of them.
Benefits of receiving your refund via direct deposit
- Speed – this is the fastest way to receive your refund. It can take as little as 21 days to have money in your account after the IRS receives your tax return. Combine that with filing electronically and this is the most efficient way to get your taxes done
- Convenience – the refund amount is simply credited to the bank account you designated
- Security – there’s no need to wait for the check and at the same time avoid chances for the check getting lost or stolen. Per IRS records, a decade ago 88,000 taxpayers dealt with undelivered refund checks. This numbers has come down drastically but these instances still occur and nobody wants to deal with the process of canceling mis-delivered refund check and waiting for the new one to be issued
- Simplicity – whether you file taxes electronically or on paper, simply follow instructions in the section asking on how you want to receive your refund. When selecting Direct Deposit, two most important pieces of information to verify are your bank’s routing number and the account number you want the refund to go.
- Control – you can request to have your refund amount divided among several accounts; those accounts may include checking, savings, selected retirement accounts, educational or health accounts
- Allocation of Refund – Form 8888