Refunds

When total tax payments are greater than the total tax, taxpayers can

• receive the refund by direct deposit to a bank account.
• receive a split refund dividing your refund, in any proportion you want, and direct deposit the funds in up to three different bank accounts.
• receive the refund by check in the mail.
• apply the refund to the estimated tax for the following year.

Taxpayers can also:

• Request that their refund be deposited directly into a TreasuryDirect online account to buy U.S. Treasury marketable securities and savings bonds. Details can be found at https://www.treasurydirect.gov.
• Use their refund to buy up to $5,000 in U.S. Series I Savings Bonds.

Direct Deposit Benefits
Speed	You get your refund faster by direct deposit than you do by check.
Security	There is no check that can get lost or stolen.
Convenience	You don’t have to make a trip to the bank to deposit your check.
Cost	lt costs the government less to refund by direct deposit.

Angela had $2,000 of gross wages, with $124 federal income tax withheld. Her net amount after taxes is $1,723. Her employer also withheld $50 which went into her retirement fund account. Making her takehome pay $1,673.

When she files her return she reports $2,000 in wages and $124 Federal income tax withheld on her return. Since the tax is "0" and she does not qualify for the Earned Income Credit, she will receive a refund of $124.