Well everyone, tax season is officially nearly over. While filing taxes is a tedious (and let's be real, confusing) process, at least there's a light at the end of the tunnel. Nothing feels better than a tax return hitting your bank account, but this is the 21st century, and there's gotta be a faster way to get that cash. So, can you get your tax refund via direct deposit? Here's the rundown.
The simple answer is: yes. According to the United States Internal Revenue Service (IRS), getting your refund through direct deposit is actually the best and most efficient way to do it. To make sure you receive your refund through direct deposit, simply go to the tax software you're using and click direct deposit as your refund method. From there, just plug in your routing and account number and voila, that sweet sum of money will be in your account in no time.
Not only is this the easiest and fastest method, but it's also the cheapest. According to the IRS website, it costs taxpayers more than $1 for every paper check issued, but only a dime if it's done as direct deposit. So not only are you getting your money faster, but you're actually saving money while doing it. Seriously, it's a no brainer.
I don't know about y'all, but I'm counting down the days until I see my bank account increase. However, there's a chance that receiving tax refunds could be a bit harder than usual. Early in the tax season, there were quite a few people who received their refund early, but the other side is that the final amount was much lower than anyone expected it to be. According to a Feb. 1 report from Internal Revenue Service (IRS), tax refunds this year are more than 8 percent lower than previous years. What does that total in American dollars you may ask? Well, the average 2018 refund totaled $2,053 while the 2019 tax refund totaled $1,865. You have to admit, that's quite a difference.
In case you've read this and are now freaking out, don't. According to USA Today, in March, tax returns were reportedly $22 higher than they were in 2018. Safe to say, the fluctuation in these tax returns are a little odd, but there could be a reason for it. In 2017, the Trump administration passed Tax Cuts and Jobs Act through Congress, which lowered taxes but changed maximum deductions to state and local taxes. What does that mean? Well, it means that our overall tax refund bill could be impacted, which appears to be entirely possible, judging by how these tax returns have been all over the place.
The roller coaster ride that is tax season is upon us, but we'll make it through somehow. After all, we have bills to pay and rent to make, and that paycheck can definitely be helpful. So in order to make sure that money comes through in a timely manner, opt for direct deposit. It's 2019 people, get with the times.