4 Ways To Receive Your Tax Refund
One of the most exciting times of the year is tax return season. For many people, even though filing a tax return can be stressful, the reward of getting a sizeable tax refund is worth all the trial and tribulation! Here are 4 ways to receive your tax refund.
Traditional checks or savings bonds
The traditional way of receiving your tax refund is by having the government mail you a traditional, paper check. Many people still prefer this method, for a variety of both educated and uneducated reasons. This method, while traditional, is also the slowest method of getting your tax refund. There is also the concern that your check could be lost in the mail or taken by someone else before it reaches you. Another option for receiving your tax refund is by having the government issue you a sales bond. This is a relatively new option, initiated in 2010. All it takes is to fill out Part II of form 8888 from the IRS. Just add that form to your tax return when you file. Depending on how much you’re expecting to get back, you are limit to no more than $5000 in increments of $50 savings bonds. Savings bonds can be a great option if you are looking to save money. With inflation, your investment has the potential to be worth more when you’re ready to use it. See more here!
Direct deposit or prepaid debit cards
If you have a checking or savings account, having your tax refund deposited directly into your account can be a huge time saver! Not only do you not have to worry about your check being stolen, you also don’t have to deposit it yourself. This is the most popular method of receiving a tax refund and is also the quickest. You also are able to split your deposit into different accounts (up to three) if, for instance, you want to save part of it and not be tempted to spend it. Use that same form 8888 to select your accounts. You are also able to have your funds deposited directly into an IRA. Prepaid cards are a similar option, especially for people without access to a bank account. The IRS will mail you a prepaid debit card that you will then activate. Funds will be deposited directly into that account in a fairly expedient manner. Recently, the government has been using Emerald Prepaid Mastercards, which means they are accepted most everywhere debit cards are. However, there are sometimes fees associated these types of debit cards. Make sure to investigate these fees before choosing a prepaid debit card for your tax refund. ATM withdrawal fees can be costly and will add up before you know it! Don’t waste your tax refund on fees.
Whether you choose a traditional check, savings bond, direct deposit into your savings or checking account or simply a prepaid debit card, the government offers you many options to receive your hard earned tax refund with security and ease.