Would you choose direct deposit this year if you knew it’s the most popular way to get a federal tax refund? What if you learned it’s safe and easy, and combined with e-file, the fastest way to get a tax refund? The fact is almost 84 million taxpayers chose direct deposit in 2013.

Still not sure it’s for you? Here are four good reasons to choose direct deposit:

  1. Convenience.  With direct deposit, your refund goes directly into your bank account. There’s no need to make a trip to the bank to deposit a check.
  2. Security.  Since your refund goes directly into your account, there’s no risk of your refund check being stolen or lost in the mail.
  3. Ease.  Choosing direct deposit is easy. When you do your taxes, just follow the instructions in the tax software or with your tax forms. Be sure to enter the correct bank account and routing number.
  4. Options.  You can split your refund among up to three financial accounts. Checking, savings and certain retirement, health and education accounts may qualify. Use IRS Form 8888, Allocation of Refund (Including Savings Bond Purchases), to split your refund. Don’t use Form 8888 to designate part of your refund to pay your tax preparer.

You should deposit your refund directly into accounts that are in your own name, your spouse’s name or both. Don’t deposit it in accounts owned by others. Some banks require both spouses’ names on the account to deposit a tax refund from a joint return. Check with your bank for their direct deposit requirements.

Have questions?  Give us a call!!

 

 

IRS Tax Tip 2014-15, February 18, 2014

This is not something that you would think would be a MUST HAVE for your smart phone but is pretty cool to track your tax refund.

Check refund status. Instead of having the client continuously calling you, the app includes an easy-to-use refund status tracker so taxpayers can follow their tax return step-by-step throughout the IRS process. Just have them enter their social security number, filing status and the expected refund amount. Your client can start checking on the status of their refund 24 hours after the IRS confirms receipt of an e-filed return or four weeks after mailing a paper return. Since the IRS posts refund updates on a daily basis, there’s no need to check the status more than once each day.

Go to your playstore and the app is called IRS2GO.

Have questions about your refund or preparation of your tax return?  Give us a call.