Tax Refund Bank Deposit or Tax Money Check?

Direct deposit for tax refunds were first offered in 1987. In 2005 the IRS issued 100 million refunds (from 133 million tax returns) amounting in $217.6 billion dollars; 52.7 million of those refunds amounting to $134.2 billion were deposited directly into bank accounts.

Direct deposit transfers your tax refund check directly into your personal or joint checking or savings account via electronic funds transfer.

The electronic funds transfer provides taxpayers with the safety and speed of direct deposit. Taxpayers can deposit tax refunds with any U.S. financial institution as long as the bank routing and account numbers are valid.

Security: The direct deposit payment is secure; the check can't get lost in the mail. In 2006 about $ 110 million tax refunds did not get to the recipient since the checks in the mail were undeliverable. Direct deposit eliminates undeliverable mail and is also the best way to guard against having a tax refund stolen.

Convenience: The money will show up in your bank account automatically; there is no need to make a trip to the bank.

Easy and fast: Use efile.com to prepare & file your taxes and select the direct deposit option to receive your tax refund fast (in 2 weeks or less after your tax return is accepted by the IRS).

Note: Some financial institutions do not allow a joint refund to be deposited into an individual account. Check with your bank or other financial institution to make sure your direct deposit will be accepted. Some banks charge a small fee for direct deposit. Double check your Bank Routing Number and Bank Account Number when you fill out the direct deposit section of your tax return. These numbers are just as important as double checking your name, address, and Social Security Number. If you aren't sure what your bank numbers are, call your bank and ask.

Paper Check: Sent via the U.S. Postal Service: efile.com does provide this option, however it will take longer to get your refund and has the danger that your tax refund check might get lost or stolen.