Easy, safe and fast — that’s direct deposit. It’s the best way to get a tax refund. Eighty percent of taxpayers choose it every year. The IRS knows taxpayers have a choice of how to receive their refunds.
IRS Direct Deposit:
- Is Fast. The quickest way for taxpayers to get their refund is to electronically file their federal tax return and use direct deposit.
- Is Secure. Since refunds go right into a bank account, there’s no risk of having a paper check stolen or lost in the mail. This is the same electronic transfer system used to deposit nearly 98 percent of all Social Security and Veterans Affairs benefits into millions of accounts.
- Is Convenient. There’s no need to wait for a refund check to come in the mail.
- Is Easy. Choosing direct deposit is easy. For paper returns, the tax form instructions serve as a guide. Make sure to enter the correct bank account and routing number.
- Has Options. Taxpayers can split a refund into several financial accounts. These include checking, savings, health, education and certain retirement accounts. The U.S. Treasury Department offers a retirement account. It’s called a MyRA account. Designate all or a part of a refund to a new MyRA account.
Taxpayers should deposit refunds into accounts in their own name, their spouse’s name or both. Avoid making a deposit into accounts owned by others. Some banks require both spouses’ names on the account to deposit a tax refund from a joint return. Taxpayers should check with their bank for direct deposit rules.
There is a limitof three electronic direct deposit refunds made into a single financial account or pre-paid debit card. The IRS will send a notice and a refund check in the mail to taxpayers who exceed the limit.
All taxpayers should keep a copy of their tax return. Beginning in 2017, taxpayers using a software product for the first time may need their Adjusted Gross Income (AGI) amount from their prior-year tax return to verify their identity.
Source: Internal Revenue Service
contact@officetaxservices.com
(858)247-1680
The IRS reminds taxpayers to be sure they have all the documents they need,
such as W-2s and 1099s, before filing a tax return. You may also need a copy of
your 2015 tax return to make it easier to fill out a 2016 tax return.
Beginning
in 2017, taxpayers using a software product for the first time may need their
Adjusted Gross Income amount from a prior tax return to verify their identity.
Under the Protecting Americans from Tax Hikes Act of 2015 (PATH Act), any
Individual Taxpayer Identification Numbers (ITIN) issued prior to 2013 or that
haven’t been used for tax-years 2013, 2014 and 2015 will no longer be valid for
use on a tax return as of Jan. 1, 2017. Individuals with expiring ITINs who
need to file a return in 2017 will need to renew their ITIN. This process typically
takes 7 weeks to receive an ITIN assignment letter, but the process can take
longer - 9 to 11 weeks if taxpayers wait to submit Form W-7 during the peak
filing season, or send it from overseas. Taxpayers who do not renew an expired
ITIN before filing a tax return next year, could face a delayed refund and may
be ineligible for certain tax credits.
If you claim the Earned Income Tax Credit (EITC) or Additional Child Tax
Credit (ACTC) on your tax return, the IRS must hold your refund until February
15. This new law requires the IRS to hold the entire refund — even the portion
not associated with EITC or ACTC. This change helps ensure that you receive the
refund you are owed by giving the agency more time to help detect and prevent
fraud.
The IRS always cautions taxpayers not to rely on getting a refund by a
certain date, especially when making major purchases or paying bills. Though
the IRS issues more than nine out of 10 refunds in less than 21 days, some
returns are held for further review.
Source: Internal Revenue Service
contact@officetaxservices.com
(858)247-1680
