Some States Issuing Debit Card Tax Refunds In Lieu Of... - Legal News

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Legal » Some States Issuing Debit Card Tax Refunds In Lieu Of Paper Checks

Some States Issuing Debit Card Tax Refunds In Lieu Of Paper Checks

Some States Issuing Debit Card Tax Refunds In Lieu Of Paper Checks
The content is accurate at the time of publication and is subject to change.
This content is not provided by Citi. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by the Citi.

The 2011 tax season witnessed the launch of income tax refunds issued in the form of pre-loaded debit cards. Geared towards “unbanked” Americans, or the portion of the population not in possession of any type of bank account, the Treasury claimed that the aim of the debit cards was to provide a “safe, convenient and low-cost financial account for the electronic delivery of their federal tax refunds,” according to online news source Bank Rate.

Because individuals without a bank account are often faced with having to pay a service charge in order to get their tax refund checks cashed, receiving a refund via debit card seems like a good option. It may also deter people from opting to take out a pricey refund anticipation loan, the short-term loan many professional tax preparation services offer based upon a flier`s anticipated refund amount. Filers with a bank account can choose to have their refund direct deposited, which generally makes the funds accessible to them anywhere between 10 days to three weeks after filing.

Now for the 2012 tax season a few states have taken the government-issued debit card tax refund plan a step further by entirely eliminating the option for taxpayers to receive their refund by paper check. States such as Louisiana and Oklahoma are mandating that all citizens deserving of income tax refunds choose between one of two options – either have the refund direct-deposited into their savings or checking account or receive the refund on a pre-loaded debit card. Paper checks will no longer be issued in either state. Oklahoma expects to save millions of dollars as a result of not having to send out paper refund checks, while Louisiana estimates a savings of around $500,000 annually.

Georgia, which participated in the debit card tax refund trial program last year, is allowing their taxpayers this year to choose whether or not they would like to receive their refund in the form of a debit card, paper check or direct deposit. Georgia`s Department of Revenue anticipates that, in time, it will go the route both Louisiana and Oklahoma have gone and eliminate the paper refund check option entirely.

Oklahoma residents who get their tax refund on a debit card this year have to use it fairly soon after receiving it in order to avoid being penalized. A $1.50 fee will be deducted from refund amount loaded onto the card each month following a 60 day period of inactivity. The fee will be collected by Affiliated Computer Service, the vendor administering the program.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

Discover Debit Card Gets an Upgrade

Posted: August 21, 2018

Discover is rolling out a new version of their debit card, offering several new features, including Freeze It, which may be familiar to their credit card customers. It lets cardholders turn their card on and off if it's lost or stolen. Continue reading
Discover Cuts Price Protection Benefits from Credit Cards

Posted: August 20, 2018

If you have a Discover card and like the Price Protection benefit that comes with it, you might want to take advantage of it sooner than later. Discover has decided to do away with this benefit. This benefit will no longer be part of your ... Continue reading
The New Citizens Bank Cash Back Plus World MasterCard

Posted: August 17, 2018

Citizens Bank has rolled out their new Cash Back Plus World MasterCard, offering cardholders 1.8% cash back when they go shopping. This is an upgraded version of their previous card. With this new version, cardholders can earn unlimited ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs up to the quarterly maximum each time you activate.
For Excellent, Good Credit
INTRO OFFER: Discover will match ALL the Miles you've earned at the end of your first year, automatically. For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
0% Intro APR on Balance Transfers and Purchases for 18 months. After that, the variable APR will be 15.74% - 25.74% based on your creditworthiness
For Excellent, Good Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!