Direct Deposit Options- Split Your Refund
Starting in 2007, taxpayers have more choices and
flexibility for the direct deposit of 2006 federal income tax refunds. For the
first time, taxpayers can split refunds among up to three accounts held by as
many as three different U.S. financial institutions, such as banks, mutual funds, brokerage firms or credit
unions.
The split-refund option is available to taxpayers who choose
direct deposit regardless if they filed the original returns on paper
or in electronic format using Form 1040, 1040A, 1040EZ, 1040-PR, 1040NR,
1040NR-EZ or 1040-SS. Taxpayers filing Form 1040-EZ-T, Request for
Refund of Federal Telephone Excise Tax, or Form 8379, Injured Spouse
Allocation, cannot split their refund.
To split direct-deposit refunds among two or three accounts
or financial institutions, complete new Form 8888, Direct
Deposit of Refund to More Than One Account. Taxpayers can continue, though, to
use the direct deposit line on Form 1040 to electronically send their refunds
to one account.
The IRS will electronically deposit refunds to taxpayers’
accounts held by a U.S. financial institution, providing that an accurate
account number and American Bankers Association (ABA) routing number is
supplied and the financial institution accepts direct deposits for the type of
accounts designated. Taxpayers should verify routing and account numbers with
their financial institutions. IRS assumes no responsibility for taxpayer or
preparer error.
For those filing their taxes electronically, the refund is
deposited in their account within two weeks. A paper check refund takes three
weeks. Those filing taxes on paper, the
process is longer. They get their direct deposit refund within four to six
weeks or paper checks within six weeks.
FREE TAX HELP FOR THE MILITARY
If you, or your spouse, are a member of the military, you
may be eligible for free assistance with the preparation and filing of
your federal tax return. The U.S. Armed Forces participate in the Volunteer
Income Tax Assistance Program. The Armed Forces Tax Council oversees the
operation of the military tax programs worldwide, and serves as the main
conduit for outreach by the IRS to military personnel and their families. The
AFTC consists of tax program coordinators for the Marine Corps, Air Force,
Army, Navy and Coast Guard.
Military-based VITA sites provide free tax advice, tax
preparation, return filing and other tax assistance to military members and
their families. The volunteer assistors are trained to address
military-specific tax issues, such as combat zone tax benefits.
Military commanders support the program by detailing members
of the military to prepare returns and by providing space and equipment for tax
centers. The IRS supports these efforts by providing tax software and training.
To receive this free assistance, you should bring the
following records to your military VITA site:
Valid photo identification
Social Security cards for you, your spouse and dependents or
a social security number verification letter issued by the Social Security
Administration
Birth dates for you, your spouse and dependents
Current year’s tax package, if you received one
Wage and earning statement(s) -- Form W-2, W-2G, 1099-R
Interest and dividend statements (Forms 1099)
A copy of last year’s federal and state tax returns, if
available
Bank routing numbers and account numbers for direct deposit
Total amount paid for day care
Day care provider’s identifying number
Other relevant information about income and expenses
If your filing status is Married Filing Jointly and you wish
to file your tax return electronically, both you and your spouse should be
present to sign the required forms. If it isn’t possible for both to be
present, a valid power of attorney that allows tax preparation can be used to
sign and file the return.
For more information, review IRS Publication 3, Armed
Forces’ Tax Guide, available on the IRS Web site at IRS.gov or order a free
copy by calling 800-TAX-FORM (800-829-3676).