Most major card companies offer their customers an opportunity to use prepaid debit cards for tax refunds. The IRS can refund your taxes on a prepaid debit card. One of the biggest advantages of using a debit card over a check is that you’ll get your refund faster. If you don’t want to wait long for your money, a debit card is definitively a better alternative to a paper check.
However, before you decide to use a debit card for tax refunds you’ll need to gather all the information. There are many prepaid debit cards out there but some of them come with extra fees. You’ll also want to choose the debit card that is easy to set up.
We bring you a list of the top four benefits to using a debit card for tax refunds and some of the best prepaid cards available today.
Speed is the single biggest advantage of using prepaid debit cards for tax refunds. In most cases, it takes from 8 to 10 days to get a refund, which is significantly faster than paper checks. If you have a Visa prepaid debit card, getting your IRS tax refund is easy and straightforward.
All that you have to do is enter your account and routing numbers into the 1040 tax form, then choose ‘checking’ as your refund method.
There Are No Cashing Fees
You can avoid the check cashing fees by setting up a direct deposit account. The procedure is simple, you will need the account and routing numbers that we mentioned previously, both of which you can find by contacting your card issuer.
Once you get set up, you’ll need to choose a prepaid card that enables direct deposit for your tax refund.
In the list below, you’ll find some of the most popular prepaid debit cards for tax refunds.
- Green Dot
- Rush Card
- Emerald Prepaid Mastercard
- Turbo Prepaid Card
Note: Direct deposit is the best option if you don’t have a bank account.
It usually takes from six to eight weeks for a paper check to be delivered. During this period, the check could get lost or stolen. In fact, many refund checks are returned to the IRS due to delivery problems.
Using a debit card for tax refunds is safer, as there is no risk your refund will be lost or stolen. In addition, you can always track the status of your refund by going to ‘Where’s My Refund’ page on IRS’ website.
You Can Apply Online
Most prepaid debit cards let you apply online which saves you the time of going to the local bank and filling in forms. Using a debit card has many other benefits, you not only get to save money on fees but the chance to earn cash prizes and saving rewards.
Tip: It’s not always easy to choose from many prepaid cards, which is why you’ll have to do your own research in order to find what works best for you.