Every year you plan to save at least some of your money but unfortunately, before the year ends, you spend every cent that you intended to save. I know it is easy to say and difficult to manage but, is it gonna continue every year? If your answer is no, then you should take a look on triple-tax savings option.
Uncle Sam has planned to help you out from this situation. He is allowing you to deposit your refund money directly in to your three accounts. You can send you refunds into your checking account which can help you to pay your bills. Another section of your refunds can go into your savings accounts and the third part of IRS can be a part of your individual retirement account. If you want to avail the benefits of this IRS’s popular innovation then make sure you follow all the instructions of your account carefully otherwise, you may end up losing all your money.
More than 43 percent of taxpayers use this service of getting the money transferred from US Treasury to their accounts. You can find the option of direct deposit on the files such as 1040, 1040A and 1040EZ. Taxpayers who are self-employed can file 1040-SS and Porto Rico and non-residential can file 1040S. You can select at most three accounts, for direct deposit.
If you send incorrect account information to IRS then you might lose the refund entirely. On the form they clearly specify that they are not responsible in the event of the taxpayers paying wrong information, so be careful while filling up the banking information.