If you’re among tax filers who are expecting a refund after filing their federal tax return, you may want to know if there’s a relatively fast way to receive your refund. The answer, according to the IRS, is yes – direct deposit.
The reason: there’s no risk of a paper check getting lost or stolen.
Plus, the earlier you receive your refund, the earlier you can put that money toward one of your financial goals.
Here’s how to get your tax refund direct deposited:
You can use direct deposit regardless of whether you’re e-filing your tax return or submitting it by mail.
If you’re using tax filing software, choose direct deposit as your refund method. Then, enter in the account number and routing number of your designated financial account.
If you’re working with a tax professional to prepare your taxes, let them know you’d like your refund to go straight to your bank. Once you give them the necessary account info, they’ll take care of the rest.
To prevent any snags, be sure to double check the account information.
Want your refund to go into just one account? You’ll simply need to input the required info into the appropriate places of your tax forms. Do the same for your state returns.
If you’d like to divvy up your refund to use toward multiple goals or accounts:
Paper filers: use the Allocation of Refund Form 8888 to allocate your refund money into a maximum of three accounts.
If you’re using tax software: it should instruct you how to deposit your funds into multiple accounts.
In addition to sending your refund to a checking or savings account, you can also deposit part of your refund into several other accounts including:
Before you select direct deposit into an account, double check that your financial institution accepts direct deposits into individual accounts when the check is from a joint filing.
The IRS says you should only have your refund deposited directly into accounts that are in your name. If you’re married, they can be deposited into an account with your name, your spouse’s name, or both as long as it’s a jointly-held account. The IRS allows a max of three electronic funds to be deposited into a single account or pre-paid debit card.
This article is for informational purposes only and is not a substitute for individualized professional tax advice. Individuals should consult their own tax advisor for matters specific to their own taxes. This article was prepared by and approved by Marcus by Goldman Sachs, but does not reflect the institutional opinions of The Goldman Sachs Group, Inc., Goldman Sachs Bank USA, Goldman Sachs & Co. LLC or any of their affiliates, subsidiaries or divisions. Goldman Sachs Bank USA and Goldman Sachs & Co. LLC are not providing any financial, economic, legal, accounting, tax or other recommendations in this article. Information and opinions expressed in this article are as of the date of this material only and subject to change without notice. Information contained in this article does not constitute the provision of investment advice by Goldman Sachs Bank USA, Goldman Sachs & Co. LLC or any of their affiliates. Neither Goldman Sachs Bank USA, Goldman Sachs & Co. LLC nor any of their affiliates makes any representations or warranties, express or implied, as to the accuracy or completeness of the statements of any information contained in this document and any liability therefore is expressly disclaimed.