Split Refunds: A Unique Savings Opportunity
In tax seasons 2004, 2005 and 2006 D2D, along with several community and private sector partners, pilot-tested Split Refunds: the capability for refund recipients to split their tax refunds into up to three bank accounts. Several bank account types are possible: checking accounts, savings accounts, Certificates of Deposits and IRAs. Based on results of the pilots, the IRS launched refund splitting for the first time in Tax Season ‘07. The IRS made refund splitting possible for all tax refund recipients through the introduction of IRS Form 8888. According to IRS estimates, as of March 5, 2010, 385,882 refund recipients chose to split their refunds of $1,701,827,906 between 2 or 3 different accounts. D2D and its partners created The Guide to Split Refunds for the free tax preparation community. See Split Refund Resources below.
In 2009, President Obama announced the introduction of a policy that further enhanced the capability of the Split Refund infrastructure. Tax payers who receive at least $50 in tax refunds can purchase a Series I U.S. Savings Bond at tax time. Read more about the policy and join our national campaign to build awareness of this policy here.