The IRS will split and deposit your refund in as many as three accounts if you fill out the right form
If the government owes you money back on your taxes, you may already have plans for what to do with it. Maybe you want to save part and use another part to pay off a loan. It would be so much more convenient if the IRS would just split up your refund into different amounts and deposit them each in a different account.
Fortunately, it will do just that—as long as you tell it to.
How to Get the IRS to Split Your Tax Refund
There’s only one thing you have to do to in order to get the government to split up your tax refund: fill out and submit Form 8888.
If you fill out and submit this form, the IRS will deposit your refund straight into as many as three different accounts that you choose. And you can request different amounts to go into each account.
This is a good option if you find that money seems to slip through your fingers—or your checking account—like water: if you put the money into an account that you rarely touch rather than one that you use often, you won’t spend it. You can’t spend what you don’t have, after all.
Where You Can Put Your Refund
According to CPA Scott McRuer, you can list just about any accounts you want on Form 888 as long as they have an account number and a routing number. They have to be able to accept direct deposit, and the names on the accounts have to be either yours, your spouse’s, or both.
Want to send the money to an IRA? You can, but you have to tell the trustee or custodian which tax year the deposit is for.
In addition, beware of delays in getting your return. If this happens, the government will put all of your money into the first account listed on Form 8888 even though you requested the refund to be split.
Source: The Washington Post: “Can’t decide what to do with your tax refund? Split it”