Starting with your 2006 taxes, you now have much more flexibility in what you do with your refund.
Now you can:
- Split your refund with direct deposits into two or three checking or savings accounts
- Direct deposit your refund into one checking or savings account
- Receive your refund as a paper check in the mail
Splitting your refund is easy. Use IRS’ Form 8888, Direct Deposit of Refund to More Than One Account, to divide your refund among two or three different accounts. If you want IRS to deposit your refund into one account, you can use the direct deposit line on your tax form.
It’s a great addition. I’ve always wanted the ability to directly deposit the money into several places so that a share of it can be deposited into a savings and even an IRA if I so choose. Of course, in previous years, you just had to wait for the deposit into your checking and then transfer from there, but it’s an extra step that is now unnecessary.