Announcement

Collapse
No announcement yet.

Form 8888

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Form 8888

    What qualifies as a 'financial account'" for divided refunds? Does it have to be a bank or can it be a brokerage account or mutual fund?

    Hoping to encourage higher savings and more banking, the Internal Revenue Service announced that it will create a new program to allow taxpayers who use direct deposit to divide their refunds in up to three FINANCIAL ACCOUNTS..

    The IRS will create a new form, Form 8888, which will give taxpayers greater control over their refunds. Form 8888 will give taxpayers a choice of selecting one, two or three accounts such as checking, savings and RETIREMENT ACCOUNTS. Taxpayers who want all their refund deposited directly into one account can still use the appropriate line on the Form 1040 series

    #2
    Joe,
    Check out the search option for form 8888, we had discussion on this form earlier.

    Comment


      #3
      Prior discussions split direct deposits

      Maybe II should have posted my message as a reply to the previous discussion.

      I checked the prior discussion, but it did not address the question as to whether brokers and mutual funds could receive tax refund deposits. If they have a routing transit number it might be possible.
      E-Trade has a feature which allows you to write checks and they have a routing transit number --056073573 -- shown on the checks. Vanguard also has a RTN --
      031100225 (which appears in the middle of the checks instead of on the left like most checking accounts),

      Comment


        #4
        Deposit it wherever you want to

        Originally posted by Joe Btfsplk
        What qualifies as a 'financial account'" for divided refunds? Does it have to be a bank or can it be a brokerage account or mutual fund?
        I went to a CPE seminar last week -- here's a relevant quote from the textbook:

        "Taxpayers can split their refunds among checking, savings, or other types of accounts at banks or other financial institutions, such as mutual funds, brokerage firms, or credit unions. Other types of accounts may include individual retirement accounts (IRAs), health savings accounts (HSAs), Archer medical saving accounts (MSAs), or Coverdell education savings accounts (ESAs)."

        Interesting note: Increases of refunds resulting from math errors are applied to the last account listed on the form. Same for decreases, except If it won't cover it, then it goes up to the next one (#1 or #2 depending on whether you listed two or three acounts).

        Oddly; any offsets going to FMS (child-support, student loans, old debts, etc.) are instead deducted first from the account with the lowest routing number. Any remaining liability goes to the next lowest number and then on up to the highest routing number.
        Last edited by Black Bart; 11-22-2006, 06:56 AM.

        Comment


          #5
          Hmmm. Just depends where

          the information originates from, eh? Okay; suits me if it suits you.

          Comment

          Working...
          X