IRS Direct Deposit Questions

• When you file IRS forms to report your taxable income and receive your tax refund, you can choose to get paid with a paper check that the IRS mails to your permanent address, or you can choose a direct deposit to your account. The second option might be more advantageous to you, especially if you need the refund money with some urgency.

Why Should I Choose Direct Deposit for my Refund?

• If you choose to receive your return through direct deposit, you will receive it much sooner than you would if the IRS were to mail you a paper check. It is also more secure than if you receive it in the mail, since the IRS receives thousands of paper checks from the U.S. Post Office every year as undeliverable mail. It also eliminates any possibility of your refund being stolen. A direct deposit is also more convenient and easier than conventional mail. It is convenient because your money goes directly into your bank account, and it is easier because, when you are preparing your return, you simply need to follow the instructions. A direct deposit also gives you more options. You can choose to deposit your refund into a single account or multiple accounts.

How Do I Split my Refund with a Direct Deposit?

• If you want a direct deposit and you choose to split your refund between multiple accounts, use the IRS Form 8888 (Direct Deposit of Refund to More than One Account). Attach this form to your federal income tax return to notify the IRS of how much of your refund will go to each bank account.

How Does the Direct Deposit Work if I Filed for a Joint Return?

• If you filed a joint return, you may ask the IRS to direct deposit your refund into your account, your spouse's account or a joint account. However, some financial institutions may not allow you to deposit a joint return into an individual account because state and financial institution rules can vary. To avoid trouble, first check with your bank to find out your options before you tell the IRS in which accounts you want your return.

Is Any Account Eligible for a Direct Deposit?

• Any checking or savings accounts with a U.S. financial institution is eligible for a direct deposit as long as your financial institution accepts direct deposits for your personal account. Eligible savings accounts you can choose include passbook savings accounts, individual development accounts, individual retirement arrangements, health savings accounts and Archer MSAs and Coverdell education savings accounts.

  In order to receive your direct deposit correctly, you need to provide the IRS with your correct routing number and account number.