If you were ever on the fence about getting your tax refund by direct deposit, here are the facts according to the IRS: it’s speedier, easier, and safer than getting a paper check in the mail.
Plus, direct deposit saves trees and lowers processing costs: Paper check tax refunds cost the taxpayers more than $1, while direct deposit costs them about 10 cents.
In short: no, the IRS doesn’t charge you to deposit your tax refund directly into your bank account. Also, if you’re filing taxes electronically through an authorized IRS e-file provider, you cannot be charged a separate fee for using direct deposit for your federal tax return.
While the IRS won’t charge you to send your refund through direct deposit, it’s a good idea to ask your bank or financial institution if they’ll charge you a fee to receive the money. Also, check if the software you’re using has any processing or filing fees before you complete your tax refund.
You can divide your refund across as many as three financial accounts.
You won’t run the risk of your paper check getting lost or stolen.