The Beauty of Direct Deposit
by Bob Williams
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For our parents, the news that “the check is in the mail,” was always good to hear. These days, not so much. Direct deposit is far superior for getting your refund safely in your hands. Or at least in your bank account.
The short list of benefits of direct deposit: it’s fast, it’s free, it’s secure, and it’s easy. But there’s more to it than that. You have more options than just a bank account as far as receiving a refund. Banks, mutual funds, brokerage firms and credit unions are all eligible to receive direct deposits. You need to check, of course, if your institution of choice does accept direct deposits for the type of account you choose.
The one limitation is that the refund can only be direct-deposited into an account that is in the taxpayer’s own name, the taxpayer’s spouse’s name, or both if it’s a joint account.
Did we mention it’s faster? The IRS claims direct deposit can get a refund to you at least a week sooner than getting a conventional check.
Apparently lots of taxpayers agree. So far this year, the IRS has issued direct-deposit refunds valued at more than $170 billion. And to this point, almost 85 percent of all refunds were deposited directly into taxpayers’ accounts.
Do they even use checks anymore? Sure.
If, for some reason, the IRS can’t make a direct deposit (if your bank account number is incorrect, for example), the IRS will automatically print a paper check and mail it to the address on your return.
We suggest baking brownies for the mailman.
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