To ensure your refund is deposited as you designate, follow these steps:
- Check with Your Financial Institution: Confirm that your financial institution will accept a direct deposit for the type of account you are designating. Some institutions may have restrictions on the types of accounts that can receive direct deposits.
- Use Correct Account and Routing Numbers: Obtain the correct account and routing numbers from official financial institution records, account cards, checks, or share drafts that contain your name and address. Double-check the accuracy of these numbers before entering them on your tax return. An incorrect or transposed number could result in your financial institution rejecting the deposit or depositing your refund into someone else’s account. The IRS cannot update this information once your return is received.
- Double-Check Your Tax Return: Ensure that your tax return is free of math or other errors that could affect the amount of your refund. The IRS recommends electronic filing for the most error-free return.
- Designate the Correct Accounts: You can direct your refund to any of your checking or savings accounts, reloadable prepaid debit cards, or mobile apps. However, you cannot direct your refund to someone else’s account, except for your spouse’s account if it is a joint refund. No more than three electronic refunds can be directly deposited into a single financial account or prepaid debit card. Exceeding this limit will result in an IRS notice and a paper refund.
- Use Form 8888 if Splitting Refund: If you want to split your refund between direct deposit and a paper check, or among multiple accounts, use Form 8888, Allocation of Refund (Including Savings Bond Purchases). This form allows you to split your refund up to seven ways, including up to three direct deposits, three Series I savings bonds, and one paper check.
By following these steps, you can ensure that your refund is deposited as you designate, minimizing the risk of errors or delays.
Sources:
Publication 1345 (11/2023)
Publication 17 (2023)
