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Issue: 868 Date: 4/12/2007
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Faster Refunds through Direct Deposit
Reviewed and adapted with special permission from the IRS by: Brenda Procter, M.S., State Specialist & Instructor Personal Financial Planning, University of Missouri-Extension
E-FILE - A smart way to do your taxes
Reviewed and adapted with special permission from the IRS by: Suzi McGarvey, Extension Associate, HES Extension, University of Missouri Extension
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Want a faster refund? According to the IRS, more and more taxpayers are choosing direct deposit as the way to get their federal tax refunds. The payment is more secure - there is no check to get lost. (Each year thousands of refund checks are returned by the US Post Office to the IRS as undeliverable mail.) And, it's more convenient - no special trip to the bank to deposit a check. To request direct deposit, follow the instructions for "Refund" on your tax return.
The IRS says that more than 52 million people had their tax refunds deposited directly into their bank accounts in 2005. Choosing direct deposit is the best way to guard against having a tax refund misplaced or stolen.
A word of caution - some financial institutions do not allow a joint refund to be deposited into an individual account. Check with your bank or other financial institution to make sure your direct deposit will be accepted. Also, make sure you have the correct nine digit routing number and your correct account number when selecting direct deposit.
For more information about direct deposit of your tax refund, check the instructions for your tax form. This and other helpful tips are available in IRS Publication 17, Your Federal Income Tax (PDF 2,085K). Download a copy or call toll free 1-800-TAX-FORM (1-800-829-3676) to order your free copy.
Source: IRS Tax Tip 2005-20
E-FILE - A smart way to do your taxesReviewed and adapted with special permission from the IRS by: Suzi McGarvey, Extension Associate, HES Extension, University of Missouri Extension
Every year, more taxpayers discover the benefits of filing their tax return electronically. Whether you use a professional tax preparer authorized by the IRS or do it yourself on a home computer, there are many reasons to consider e-filing your tax return this year.
Fast. No more last minute trips to the Post Office - just hit Send!
Accurate. The electronic filing program checks for errors and necessary information, increasing the accuracy of your return and reducing the need for correspondence with the IRS to clarify errors or omissions.
Easy. The computer software leads you step-by-step. You can usually file a state tax return at the same time you electronically file your federal return.
Quicker Refunds. Generally, when you file electronically, your refund will be issued in about half the time it would take if you filed a paper return. Those who choose direct deposit will get their refund in even less time.
Peace of mind. Once the return is accepted for processing, the IRS electronically acknowledges receipt of the return.
Payment options. With electronic filing, you can file your return early but wait to pay any balance due by the April deadline. You can also pay electronically, using a credit card, electronic funds withdrawal or, in some cases, the Electronic Federal Tax Payment System.
The IRS offers eligible taxpayers the opportunity to electronically prepare and file their tax returns for free through the Free File Alliance, a partnership between the IRS and private-sector software companies.
For more information on e-filing or the Free File Web page, check the IRS Web site at www.IRS.gov. You will also find a withholding calculator and worksheet, along with Form W-4, and Employee's Withholding Allowance Certificate. You may also get Form W-4 from your employer or by calling the IRS at 1-800-TAX-FORM (1-800-829-3676).
Source: IRS Tax Tip 2006-18 |
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