Tax season opened on January 23, 2023, and many are hoping for a little less stressful than in the last few years, and Americans can save themselves some grief by opening an account that can accept electronic payments, the IRS says.
IRS Urgest Taxpayers To Use Direct Deposit To Claim Tax Refunds
The average refund reached nearly $3,200 last year, although the IRS has declared that the amount may be smaller this year because many pandemic-related benefits expired. Typically, 75% of Americans receive refunds annually. In receiving a refund, the IRS can mail you a paper check, but the fastest and safest way is through a free, electronic direct deposit.
Several taxpayers already get their refunds through direct deposit, but the IRS encourages Americans to shift direct deposit to more convenience. The IRS said, “There’s no chance of it going uncashed, getting lost, stolen, or destroyed.” The electronic transfer system is used to deposit nearly 98% of all Social Security and Veterans Affairs benefits into millions of accounts.
Here’s How Direct Deposit Works
Tax software can complete your return, choose direct deposit as your tax refund method, and type in the account number and routing number of your bank account. To find your routing number, which identifies the location of the bank’s branch, on the bottom left corner of your checks or you can verify it on your bank’s website. The account number is located at the bottom right corner of your checks, or you can sign into your online banking account or contact your bank branch.
Moreover, If you’re using a tax preparer, inform your tax professional you prefer direct deposit. You can still use direct deposit even if you’re filing by paper. Just make sure you indicate a direct deposit on your return and include your information. Lastly, always be cautious upon your entry to avoid errors and delays. If you’ve missed a number on your account or routing number, the IRS may return you a paper check.
For Taxpayers Who Don’t Have Bank Account
You can always open a new bank account and find a perfect bank for your preference at the FDIC website or the National Credit Union Administration using their Credit Union Locator Tool. You can also inquire with your preparer if they have other electronic payment options that they offer.
Although, you can also deposit your refund to a reloadable prepaid debit card or mobile app. Reloadable prepaid cards and mobile apps mostly have routing and account numbers, which may be different from the card number. Check with your financial institution first and verify if your card or app can accept deposits and double-check the routing and account numbers.
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