In March 2007 the IRS told us direct deposit tax refunds soared over the $100 billion mark. An increasing number of taxpayers preferred the convenience and efficiency of direct deposit over receiving a paper check.
“At the halfway point, the filing season is proceeding smoothly,” said IRS Commissioner Mark W. Everson. “There are a couple of noteworthy items so far. Taxpayers are choosing direct deposit of refunds at a record pace. Electronic filing has increased over last year. In addition, I want to encourage people to take advantage of the telephone excise tax refund if they are eligible. Far too many people who qualify for this special refund are not claiming it.”
At that time 2, 35.6 million taxpayers chose to have their tax refunds deposited directly into a personal savings or checking account through their banks. Prior to 2007, U.S. taxpayers were only permitted to designate one bank account for a refund of this nature. Then the change took place and taxpayers were given the option to their refunds between as many as 3 accounts. The accounts could be at three different banks or U.S. financial institutions.
The IRS endorses split refunds because they give taxpayers more choices for handling their money. Taxpayers who have not yet completed filing taxes online are encouraged to consider this option. Instant tax services such as Jackson Hewitt report it’s an advantage for anyone wishing to build assets. For example, you can send a portion of your refund to one account for immediate cash requirements You can direct the other part to a savings or investment account for your future. This is the benefit of splitting your direct deposit.