Get Your Tax Refund Faster and Secure with Direct Deposit: IRS Encourages Americans to Opt In

The IRS has urged Americans to open an account capable of accepting electronic payments as the largest single payday is rapidly approaching. Millions of Americans receive tax returns each year, with the average refund amounting to close to $3,200, according to a report by MARCA on February 7, 2023.

The IRS suggests that a free, computerized direct deposit is the quickest and safest method for receiving a refund. Direct deposit is currently utilized by eight out of ten taxpayers, with the IRS aiming to increase this number, as reported by the IRS on February 2, 2023.

The IRS emphasizes that the electronic transfer system used to deposit refunds is the same as that used for over 98% of all Social Security and VA benefits, reducing the risk of the refund being misplaced, stolen, or destroyed. To select direct deposit as your refund option, simply enter the routing and account numbers when filing your tax return.

The majority of refunds are issued within 21 days to taxpayers who file online and select direct deposit. Taxpayers can monitor the status of their refund using the “Where’s My Refund” service. The money should be in their account within five days of the IRS’s approval.

For those without a bank account, a reloadable prepaid debit card or mobile app can be used to deposit the refund. Routing and account numbers can be found on the card or app, but it is important to verify these numbers with the bank institution and ensure that the card or app can accept the deposit. The IRS hopes to encourage more Americans to utilize direct deposit for their tax refunds, as it is a quick and secure method.