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.
The year, taxpayers who elect direct deposit may receive an
additional benefit. For most taxpayers, selecting the direct deposit
option for their 2007 refund will also allow their economic stimulus
payment to be direct deposited. However, in some instances, such as if
the taxpayer has the refund deposited into an IRA account, or elects to
split the refund into two or more accounts paper stimulus check will be
issued. Even taxpayers who are not expecting a refund this year can
complete the direct deposit section of their return to ensure that the
stimulus payment is electronically deposited into their account.
For more information on the direct deposit of stimulus payments visit
the IRS Economic Stimulus Payment Information Center on IRS.gov.
Remember that for the genuine IRS Web site be sure to use .gov.
Don't be confused by internet sites that end in .com, .net, .org or
other designations instead of .gov. The address of the official IRS
governmental Web site is www.irs.gov.
