Does The IRS Charge A Direct Deposit Fee?

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.

Are there fees if you ask the IRS to use direct deposit?

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.

Will anyone else charge you fees for direct deposit?

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. 

Other info about direct deposit

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.

This article is for informational purposes only and is not a substitute for individualized professional advice. Articles on this site were commissioned and approved by Marcus by Goldman Sachs®, but may not reflect the institutional opinions of Goldman Sachs Group, Inc., Goldman Sachs Bank USA or any of their affiliates, subsidiaries or divisions.