Not Just a Check: Other Options for Receiving your 2010 IRS Tax RefundPublished:
Don’t want to just get another check from the IRS this year? Worried you might just blow it on that fancy new kitchen table you saw at Ikea? Don’t worry, you’re not alone. That’s why there are several options available to you instead of just getting a check in the mail this tax season. Let’s take a look at a few of them.
Apply Refund to Next Year’s Return
Yeah, you got a big refund this year, and that’s good news. The bad news is you can see owing some money next year, and how! Maybe you just started a new business, or had some major changes in your life. Whatever the case, you can apply the funds you would receive this year to your tax return next year.
This way, when you get your big tax bill, you already have money in money to help pay for it. If you just got a check, you might end up spending it away and end up with a huge bill.
Another option you have with your IRS tax refund is to invest in savings bonds. The IRS will take your refund (up to $5000) and buy savings bonds with it. They must be in $50 increments. Anything left over in your refund will be sent to you.
The savings bonds can be a great investment for the future. They will accrue value in spite of inflation and will come in very handy when you need them years down the road.
Prepaid Debit Cards
Taxpayers in a hurry can often get their tax refunds same day if going through a tax provider. How? By loading the amount due (minus fees) on a prepaid debit card. This is much quicker than receiving a paper check and will even shave 10 days or so off your wait for direct deposit. But keep in mind that these prepaid cards are a service provided by your tax preparation company, and they aren’t in the tax prep business for their health! These prepaid cards will come with various fees, so watch out for frees for swiping at an ATM or even fees for NOT using the card during a calendar month.