IRS Expands Taxpayers' Options for Direct Deposit of Refunds
WASHINGTON;- Hoping to encourage higher savings and more banking, the Internal Revenue Service announced today that it would create a new program to allow taxpayers who use direct deposit to divide their refunds into three financial accounts.
The IRS will create a new form, Form 8888, to give taxpayers greater control over their refunds. Form 8888 will allow taxpayers to choose one, two, or three accounts, such as checking, savings, and retirement. Taxpayers who want all their refunds deposited directly into one account can still use the appropriate line on the Form 1040 series.
The split-refund program will allow taxpayers to conveniently designate - at the time they file - and deposit their refunds with any U.S. financial institution as long as they provide valid routing and account numbers. Taxpayers will attach a new Form 8888 to their returns indicating amounts for each allocation and providing account information.
This ability to split or allocate their direct deposit refunds among multiple accounts will be available to all individual filers, whether they file Forms 1040, 1040NR, or any of the other 1040 series forms.
This information is good for all years of UltimateTax.