February 7, 2024 •Leah Driver
Believe it or not, tax season is here again. As you gather your documents and prepare to file, it's important to consider how you'll receive your tax refund. The Internal Revenue Service (IRS) recommends receiving your refund by direct deposit, emphasizing that it’s not only free, fast, and simple, but it's also safe and secure. Taxpayers can even split their refund into multiple accounts.
Why choose direct deposit for your tax refund? There are several compelling reasons:
- Safety and Security. Direct deposit eliminates the risk of your refund check getting lost, stolen, or destroyed. Your refund goes straight into your bank account, reducing the chances of any mishaps along the way.
- Convenience. With direct deposit, there's no need to wait for a paper check to arrive in the mail or worry about remembering to cash it. Your refund is deposited directly into your bank account, ready for you to use whenever you need it.
- Speed. Direct deposit is the fastest way to receive your refund. Because it's electronic, your refund doesn't have to travel through the mail, meaning you'll get your money faster.
So, how can you ensure that you receive your refund via direct deposit? It's simple:
- When filing your taxes, indicate direct deposit as your preferred refund method.
- If using tax software, select the direct deposit option and provide your bank account number and routing number.
- If filing by paper, mark direct deposit on your return and include your bank account and routing numbers.
But where can you find your bank account and routing numbers? Here are a few places to look:
- On a check, the routing number is the nine-digit number in the bottom left corner, while your account number is directly to the right
- Check your bank statements
- Log in to your bank's mobile app or online platform
- Contact your bank directly to request the necessary details
Be sure to double-check your information before submitting to help avoid errors and delays, and to choose “Direct Deposit” as your desired refund method as you can’t make changes after you’ve filed your tax form with the IRS.
The combination of electronic filing and direct deposit yields the fastest tax refunds. Electronic filing reduces errors and prompts for missing information, resulting in quicker processing times. Most refunds are issued in less than 21 days, with taxpayers able to track their refund status using the IRS's "Where's My Refund?" tool or the IRS2Go mobile app.
As you eagerly await your tax refund, consider how you'll manage your money once it arrives. Whether you're looking to pay off debt, build an emergency fund, or make investments for the future, your refund presents an opportunity to enhance your financial well-being.
By choosing direct deposit, staying informed about your refund status, and making strategic decisions about your finances, you can maximize the benefits of your tax refund and pave the way for financial success.
Additional Resources:
CFPB Tax Refund Tips: Understanding Refund Advance Loans and Checks
IRS Refund Inquiry Information
ABA Handout - Use Direct Deposit for Your Tax Refund
The views, information, or opinions expressed in this article are solely those of the author and do not necessarily represent the views of Citizens State Bank and its affiliates, and Citizens State Bank is not responsible for and does not verify the accuracy of any information contained in this article or items hyperlinked within. This is for informational purposes and is no way intended to provide legal advice.