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The Resource Center Identity Theft & Protection The Resource Center | article

Tax Race Tip #11: Why You Should Direct Deposit Your Tax Refund

Before you finish filing you'll have to decide how you'll receive your refund. Here's why you should consider direct deposit.Tax season is well under way, have you gone through your checklist?

  • Gathered all the right documents? Check!
  • Kept your identity and your refund safe all year-round by securing your SSN, shredding important documents before trashing them, and being cautious about request for personal information? Check!
  • Chosen your tax prepared carefully? Check!
  • Filed electronically? Check!
  • If you filed on paper, did you mail the forms yourself to ensure their safety? Check!
  • Filed early? Check!
  • Saved your documents and tax return paperwork safely? Check!

If you can say check to all of these things then you really are head of the game and can now relax as you wait for your refund. But before you start dreaming about the purchases and investments you'll make with your refund, let's talk about how you'll receive that refund.

Whether you filed on paper or electronically you can choose to have your refund direct deposited into an account with your name on it. In fact, by filling out form 8888 you can direct deposit up to three portions of your refund into various types of accounts including IRA accounts, some medical accounts, and investment and brokerage accounts.

Direct deposit not only gives you the flexibility to divvy portions of your refund into different accounts, but it also provides you with a faster and more secure way or receiving your refund than the traditional paper check.

Paper checks can get lost in the mail and are easily stolen once delivered to your unlocked mailbox—beat the thief to your refund and use direct deposit.

To learn more about the options available to you for receiving your federal income tax refund, visit: https://www.irs.gov/taxtopics/tc152.html or https://www.irs.gov/Refunds/Tax-Season-Refund-Frequently-Asked-Questions.

Identity Guard is committed to helping you not only protect yourself from identity theft, but also understand how it can happen. Count on us to get tips and advice to help guard against all sorts of identity related fraud, including tax fraud.

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