Splitting Federal Income Tax Refunds – Answers – by Former IRS
Frequently Asked Questions about Splitting Federal Income Tax Refunds
You have several options for receiving your federal income tax refund.
You can:
- Split your direct deposit refund among two or three different accounts, with up to three different U.S. financial institutions;
- Direct deposit your refund into a single checking or savings account; or
- Receive your refund in a paper check.
- Buy up to $5,000 in U.S. Series I Savings Bonds with your refund.
Splitting your refund is easy. Use IRS’ (Including Savings Bond Purchases)”>Form 8888, Allocation of Refund (Including Savings Bond Purchases), to split your refund among two or three different accounts.
Form 8888 is not required if you want IRS to direct deposit your refund into a single account; you can use the direct deposit line on Forms 1040, 1040A or 1040EZ.
With split refunds, you have a convenient option for managing your money — sending some of your refund to an account for immediate use and some for future savings — teamed with the speed and safety of direct deposit.
What is a split refund?
A split refund lets you divide your refund, in any proportion you want, and direct deposit funds in up to three different accounts with U.S. financial institutions.
What are the benefits of splitting my refund?
Instead of depositing your refund into a checking or savings account and later moving part of your refund to another account, you can allocate your refund among up to three different accounts and send your money where you want it the first time.
By splitting your refund, you get the convenience of directing some of your refund to your checking account for immediate needs and sending some to savings for future use.
Plus, you get the safety and speed of direct deposit, meaning you will have access to your refund faster than if you opt to receive a paper check.
How do I split my refund?
Simply complete and attach (Including Savings Bonds Purchases)”>Form 8888, Allocation of Refund (Including Savings Bonds Purchases), to your federal income tax return to tell IRS how much and to which of your accounts you want your refund deposited.
Can I still send my refund to just one account?
You can ask IRS to direct deposit your refund into just one account, or into two or three different accounts. The choice is yours.
If you want your refund deposited into one account, use the special direct deposit lines on your tax return (Forms 1040, 1040A, etc.). If you want your refund deposited to two or three accounts, or you want to buy Savings Bonds with part of your return and deposit the remainder to two or three accounts, use (Including Savings Bond Purchases) Form 8888, Allocation of Refund (Including Savings Bond Purchases).
Remember: You can direct your refund to any of your checking or savings accounts, but you cannot direct your refund to someone else’s account, except for your spouse’s account, if this is a joint refund.
Does my refund have to exceed a certain amount to split it into different accounts?
Your deposit to each account must be at least one dollar.
If you want to buy Savings Bonds with part of your refund, the amount you request must be a multiple of $50.
If I want to split my refund among different accounts, can those accounts be with different financial institutions?
You can split your refund among up to three different U.S. financial institutions as long as they will accept a direct deposit to your account.
Remember:
You can ask IRS to direct deposit your refund into your account, your spouse’s account or a joint account. But you should verify that your financial institution accepts a joint refund into an individual account.
Must I file electronically to split my refund?
You can split your refund whether you file electronically or on paper. However, IRS recommends using e-file to avoid simple mistakes that could change the amount of your refund, and therefore the amount available for deposit.
Can I split my refund if I file a 1040-EZ?
You can split your refund on an original return filed on any of the following: Form 1040, 1040A, 1040EZ, 1040NR, 1040NR-EZ, 1040-SS, or 1040-PR.
However, you cannot split your refund if you file Form 8379, Injured Spouse Allocation.
Will splitting my refund cause a delay in depositing my refund?
Splitting your refund will not cause a delay. In fact, because it uses direct deposit technology, your funds will be in your account(s) faster than if you opt to receive your refund in a paper check.
Can I split my refund between a direct deposit and a paper check?
You cannot split your refund between a direct deposit and paper check. You can either opt for the safety, security and speed of direct deposit to one, two, or three different accounts or request your refund via a paper check, but you cannot combine the two.
Can I split my refund if I have only two accounts?
You can electronically direct your refund to one, two or three separate accounts at your discretion. This change gives you more convenience, flexibility and options in managing your finances.
You can designate a direct deposit to one account directly on the Form 1040 series of forms or you can use (Including Savings Bond Purchases) Form 8888, Allocation of Refund (Including Savings Bond Purchases), to split your refund among two or three different accounts.
Remember:
You can ask IRS to direct deposit your refund into your account, your spouse’s account or a joint account. You should verify that your financial institution accepts a joint refund into an individual account.
Splitting Federal Income Tax Refunds – Answers – by Former IRS
Must I split my refund equally?
You have the flexibility of dividing and directing your refund any way you want. There is no requirement to make the deposits equal. However, if you are buying U.S. Series I Savings Bonds, the amount you request must be a multiple of $50.