Posted on: 24th Jul, 2007 05:35 am
What is a split refund
This option is available to tax payers who choose direct deposit. The split refund option will be available to them regardless of whether original returns were filed in electronic format using Form 1040NR, 1040-SS, 1040, 1040A, 1040-PR, 1040EZ, 1040NR-EZ or on paper.
But those tax payers who file Form 8379, Injured Spouse Allocation, or Form 1040-EZ-T, Request for Refund of Federal Telephone Excise Tax, cannot opt to spilt their refund.
Miller
But those tax payers who file Form 8379, Injured Spouse Allocation, or Form 1040-EZ-T, Request for Refund of Federal Telephone Excise Tax, cannot opt to spilt their refund.
Miller
From this year a tax payer has more choices & flexibility for direct deposit of 2006 income tax refunds. Now they can spilt refunds among up to 3 accounts held by different financial institutions like banks, mutual funds and credit unions.
For splitting direct deposit refunds among 2-3 accounts taxpayer has to complete the new Form 8888. But they can continue to use the direct deposit line on Form 1040 for electronically sending refunds to 1 account.
Please also go through this IRS page for more information on this topic: http://www.irs.gov/newsroom/article/0,,id=108001,00.html
For splitting direct deposit refunds among 2-3 accounts taxpayer has to complete the new Form 8888. But they can continue to use the direct deposit line on Form 1040 for electronically sending refunds to 1 account.
Please also go through this IRS page for more information on this topic: http://www.irs.gov/newsroom/article/0,,id=108001,00.html