Feb 12, 2008 4:25 pm US/Eastern
Taxpayers Can Choose Where Their Refund Goes
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(CBS4)
When most people file their taxes, they end up with a nice refund in the mail a couple months later. Now taxpayers can choose where they want their refund to go.
"If you elect direct deposit or electronic filing you can elect to have the refunds put into 3 separate accounts," says IRS Spokesman Mike Dobinski. "Say one towards your bank checking, your savings or even your individual retirement account."
You'll need your account numbers and bank routing numbers to make sure your money gets where you want it. Financial experts warn taxpayers to be very careful when they give Uncle Sam their financial information.
"If you mess up a number, transpose a number, it can send it to a wrong account," says Bankrate Monitor Kay Bell. "It can send it to a non-existent account and it means you might not get your refund money quickly."
Once a taxpayer's refund is routed by the IRS, if any mistakes were made, it's up to the recipient to get it straightened out with the bank.
If you're filing a joint return, financial experts suggest you double check with your bank first. Some don't allow joint deposits into single accounts.
Despite the extra effort needed to take advantage of this new service, some taxpayers say they are happy with the results.
"That was a great way for me to start the whole Roth contribution process with a nice chunk of change that I've already pre-saved," said relieved taxpayer Jim Wang.
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