Unless you’re one of those “no deductions” Americans, filing taxes can be a headache. But technology continues to make some of our financial lives simple and one financial expert says that there are some new features that we should use.
The one that offers us the biggest advantage is the banking app that you probably have sitting on your phone right now. Darius Kingsley, head of Consumer Business Practices at Chase, said it’s not only a great tool for not only daily banking, but also for filing taxes.
Kingsley explained the process to ConsumerAffairs, saying that the only two things you need are your account and routing numbers:
Setting up direct deposit: ”Each bank will be different, but generally, you can find your account and routing numbers by logging into your bank’s mobile app or website,” Kingsley told ConsumerAffairs. If you’re looking at a paper check, those numbers are:
Routing number: the 9-digit number on the bottom left
Account number: the set of numbers on the bottom center
Check number: the number at the bottom right
Depositing a paper check: “Many filers still prefer to receive their tax refund as a paper check sent via mail, and that’s OK,” Kingsley said. “Once you’ve received it, you’ll have options to deposit it into your account:
Mobile Deposit: Many banking apps include a feature to deposit your check by taking a picture of the front and back of it, confirming the amount and selecting the account you want the deposit to go into. For example, Chase customers can use QuickDeposit to make quick and easy mobile deposit
In-Person: Visit your bank’s ATM or local branch to deposit your check
Don’t forget the IRS’ new programs, either
The IRS has three new things that might be worth checking out. The first is its “guided online” Free File program available to any taxpayers who have an adjusted gross income of $79,000 or less.
The Direct File pilot is another 2024 initiative. This allows eligible taxpayers to file their 2023 federal tax returns online directly with the IRS for free. However, this service isn’t fully launched at the moment but should be more widely available to the general public from mid-March.
If you don’t want to pay an accountant to prepare your taxes but still want someone with that level of kowledge, the IRS has expanded in-person services at Taxpayer Assistance Centers (TACs), increased the customer call-back feature, and made improvements to the "Where's My Refund?" tool. This video from the agency offers a good overview of how to make that happen.
But be careful about potential fraud and scams
Tax professionals and CPAs are increasingly being targeted by scammers this tax season as many individuals file tax returns. One popular scam involves phishing emails that impersonate potential new clients or software companies, aiming to obtain sensitive information such as Electronic Filing Identification Numbers (EFINs). The IRS has warned that these fraudulent activities could lead to identity theft and the filing of bogus tax returns to claim refunds.
“It’s also important to stay vigilant against potential fraud and scams as you file your taxes and deposit your refund. Remember, a government agency, like the IRS, will not call you to demand urgent action or threaten you,” Kingsley told ConsumerAffairs. ”In most instances, they communicate via mail. Opt for receiving your refund via direct deposit, if possible, instead of a paper check.”
If you decide to go the paper check refund route, remember these three safety tips, Kingsley urged.
Deposit the check immediately upon receipt.
Only endorse the check (sign the back) once you are ready to deposit or cash it.
Use your banking app to quickly and easily deposit your check with tools like Chase QuickDeposit.
“It’s also important to stay vigilant against potential fraud and scams as you file your taxes and deposit your refund. Remember, a government agency, like the IRS, will not call you to demand urgent action or threaten you,” Kingsley said.
”In most instances, they communicate via mail. Opt for receiving your refund via direct deposit, if possible, instead of a paper check. You will get your funds quicker and you minimize the risk of getting the paper check lost or stolen.”