You are on page 1of 1
we, EDMOND & a Life & Leisure Page 20 - October 11, 2018 - Edmond Life & Leisure Ar The pros of direct deposit refunds By Valerie Ard In today's technology, handling of deposits and even expenses via direct deposit or direct withdrawal is commonplace. But, there are quite a few taxpayers who still prefer the good old-fashioned re- fund checks from the IRS and state. Q: Is using direct deposit faster than receiving a check by mall? ‘A: The quickest way for a taxpayer to get their refund is to electronically file their return and use direct deposit. During the normal tax filing season this refund can hit your bank account within 2 to 3 weeks, where waiting for your check to arrive by mail could take four to six weeks. Q: By using direct deposit Is my Information safe ‘and secure? A: Since refunds go right into a bank account, there's no risk of having a paper check stolen or lost. This is the same electronic transfer system that deposits nearly 98 percent of all Social Secu- rity and Veterans Affairs benefits into millions of accounts. Ard Q: Just how does a person go about setting up direct ‘A: Choosing direct deposit is easy! When elec- tronic filing your return, it is a matter of entering your bank information into the tax software. The software will need both routing number and ac- count number. If you choose to paper file your re- turn it can be entered on page two of the 1040 right below where your refund amount is listed. (Q: Can a taxpayer direct deposit their refund Into more than one account? A: Yes, you can most definitely split up a refund. These include checking, savings, health, educa tional and even certain retirement accounts. You are limited to allocate refunds to three accounts. You should avoid making deposits into accounts owned by others and keep deposits in your own name, spouse's name or both. Q: Can | deposit my state refund as well? ‘A: You can, and in fact, the Oklahoma Tax Com- mission prefers that you do so. If you do not choose this method you will be issued a debit card with your refund amount loaded into it, The Tax Commission does not send out paper refunds any- more. Valerie Ard is tax supervisor at Arledge and As- sociates, PC, an Edmond-based accounting firm. Arledge and Associates, PC is a recognized leader in the accounting industry offering practical solu- tions in the areas of tax planning, auditing, con- sulting, accounting advisory services and client accounting. This article contains general information only and does not constitute tax advice or any other professional services. Before making any decisions or taking any action that might affect your income taxes, you should consult a professional tax advi- sor. This article is not intended for and cannot be used to avoid future penalties that may be im- posed by the Internal Revenue Service.