Have you thought about using direct deposit for your tax refund? Here are some benefits to consider.
First it makes receiving your tax refund much quicker. The refund is the most efficiently received when you electronically file and select direct deposit. Second it is secure, the funds go directly to the account you specify and there is no chance of it getting lost in the mail. It is easy to provide your preparer with the bank information and then double check to make sure the bottom of the return matches what your checks have.
Did you know that when you opt for direct deposit, you can select several different accounts for your tax refund to be deposited into, such as savings, checking, or even a retirement account? Lastly it saves money! It costs more than $1 for every paper check, but closer to a dime for direct deposit.
One of the questions I get is: “Doesn’t this give the government permission to access my account?” The answer is no. You are giving them permission for the specific transaction on your return. You can choose to have them pull the taxes due on a certain day or choose for them to direct deposit a refund. They are not allowed to do any other transaction in your account other than what you have given them permission for.
So, when you get that call from your tax preparer asking if you want to direct deposit, think of how much quicker you will receive your money, and how easy it is before you make that decision.
The Wassman CPA Services website and blog is meant to offer general information to our readers. The information provided is not intended to replace or serve as a substitute for any accounting, tax or other professional advice, consultation or service. You should contact Wassman CPA Services for advice concerning specific matters prior to making any decisions.