Splitting refunds among accounts.Taxpayers who opt to split their refunds among multiple accounts soon will have a new form to make such requests. The IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. unveiled a draft version of Form 8888, Direct Deposit of Refund; see IR-2006-134. The form is intended to help taxpayers implement new choices and gain flexibility for direct deposits of their 2006 Federal income tax refunds. Starting in January 2007, taxpayers can divide their refunds among as many as three checking or savings accounts and three different U.S. financial institutions, by using Form 8888. This option will be available for returns filed either on paper or electronically. Variety permitted: In addition to traditional checking and savings accounts, refunds also can be directed to an IRA Ira, in the Bible Ira (ī`rə), in the Bible. 1 Chief officer of David. 2, 3 Two of David's guard. IRA, abbreviation IRA. , health savings account A Health Savings Account (HSA) is a tax-advantaged medical savings account available to taxpayers in the United States who are enrolled in a High Deductible Health Plan (HDHP). The funds contributed to the account are not subject to federal income tax at the time of deposit. or Coverdell education savings account Coverdell Education Savings Account A special individual retirement account opened on behalf of a child under age 18. Contributions of up to $2,000 annually may be made by anyone who meets specified income limits. ; refunds cannot be deposited into more than one account for taxpayers who file Form 8379, Injured Spouse Allocation. Taxpayers can continue to use the direct-deposit line on Form 1040 to send their refunds to one checking or savings account electronically. The new draft Form 8888 is available on at www.irs.gov/pub/irs-dft/ f8888--dS.pdf. Lesli S. Laffie, J.D., LL.M LL.M Legum Magister (Master of Laws) . |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion