Taxpayers can get faster tax refunds with Direct Deposit

Taxpayers can get faster tax refunds with Direct Deposit

WASHINGTON — With the tax deadline nearly here, the Internal Revenue Service encourages all taxpayers to join the 80 percent of filers who choose Direct Deposit to get their tax refund faster.

Direct Deposit into a bank or other account is a secure option. It avoids the possibility of lost, stolen or undeliverable refund checks. The IRS uses the same system to deposit tax refunds that Social Security and Veterans Affairs use to deposit 98 percent of benefits into millions of accounts.

Choosing Direct Deposit is easy when electronically filing. A taxpayer – or their tax preparer – simply selects it as the refund method in their tax software and enters account and routing numbers. Paper filers should follow the instructions on their tax form. With either method, double check entries to avoid errors.

Direct Deposit also saves taxpayer money. It costs the IRS more than $1 to issue a paper refund check, but only a dime for each direct deposit.

E-file plus Direct Deposit yields fastest refunds

The IRS urges taxpayers to file electronically. While a person can choose Direct Deposit no matter how they file, e-filers will typically see their refund in fewer than 21 days.

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