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Revision as of 15:43, 11 February 2008
, 15:43, 11 February 2008TT-2008-29: DIRECT DEPOSIT AND SPLIT REFUND
Using Schedule C-EZ can save time and reduce paperwork burden for eligible businesses. More information about Schedule C-EZ and reporting net profit for sole proprietorships can be found on the IRS Web site at IRS.gov.
Using Schedule C-EZ can save time and reduce paperwork burden for eligible businesses. More information about Schedule C-EZ and reporting net profit for sole proprietorships can be found on the IRS Web site at IRS.gov.
== TT-2008-29: DIRECT DEPOSIT AND SPLIT REFUND ==
Taxpayers have choices and flexibility for the direct deposit of 2007 federal income tax refunds. They can:
* Split their refunds among up to three accounts held by as many as three different U.S. financial institutions, such as banks, mutual funds, brokerage firms or credit unions;
* Direct deposit their refunds to one account; or
* Opt to receive a slower paper check through the mail.
The split-refund option is available to taxpayers who choose direct deposit regardless of whether they filed the original returns on paper or in electronic format using Form 1040, 1040A, 1040EZ, 1040-PR, 1040NR, 1040NR-EZ or 1040-SS. However, taxpayers filing Form 8379, Injured Spouse Allocation, cannot opt to split their refunds.
To split direct deposit refunds among two or three accounts or financial institutions, taxpayers should complete IRS Form 8888, Direct Deposit of Refund to More Than One Account. Taxpayers can continue, though, to use the direct deposit line on Form 1040 to electronically send their refunds to one account.
The IRS will electronically deposit refunds to taxpayers’ accounts held by a U.S. financial institution, provided that an accurate account number and American Bankers Association (ABA) routing number is supplied and the financial institution accepts direct deposits for the type of accounts designated. Taxpayers should verify routing and account numbers with their financial institutions. IRS assumes no responsibility for taxpayer or preparer error.
Note that taxpayers can do things much faster electronically than by paper. For those filing their taxes electronically, the refund is usually deposited in their account within two weeks. A paper check refund generally takes about three weeks. For those filing taxes on paper, the process is longer. They get their direct deposit refund in around four to six weeks, while paper checks take six weeks or so.
By using the IRS’ popular Where’s My Refund? feature at IRS.gov, taxpayers can check the status of their refunds. Refund information is available in both English and Spanish. Taxpayers without Internet access can call 800-829-1954.
== External Links ==
== External Links ==
