There are several different options available when it comes to receiving your tax refund. You may be wondering which option is best for you. When you file your taxes, you should file electronically. This is called e-filing. You can do this if you use computer software or go to an accountant or a tax preparation business.
Ways to Receive your Refund
- Emerald Card
- By Check
- Direct Deposit
- Refund anticipation loan
- IRS credit
- U.S. savings bonds
This will help to speed up the time it takes the IRS to review your taxes and send out your refund. If you get a large refund, you should have a spending plan for your refund so you make the most of this extra money. You can begin prepping to file your taxes at the end of the year.
Every year, you promise yourself thatyou’re going to save at least some of your tax refund. Every year, you end up spending every last cent as soon as you cash the check. Uncle Sam wants to help you hang onto your refund longer. He’ll gladly directly deposit your refund into up to four accounts so you won’t be so tempted to spend it.
Among the possibilities are a standard checking or savings account, as well as an individual retirement account. You even can use up to $5,000 in tax refund money to purchase savings bonds. The option to send your tax refund directly to several accounts was prompted by the increasing popularity of direct deposit. Since direct deposit of tax refunds was introduced in 1987, it’s become one of the Internal Revenue Service’s most popular features.
You still can choose to have your entire refund sent to just one account. That option remains on the 1040EZ, 1040A and 1040. It’s also available on 1040s filed by nonresident and Puerto Rican taxpayers, as well as self-employed taxpayers who must file the 1040-SS.
But if you want to divide your refund into multiple accounts or buy savings bonds, you’ll have to send along Form 8888, Allocation of Refund, with your individual return.
You can get more information at 661-729-4829