Q) What is a split refund?
A) A split refund is a feature that allows you to direct deposit your tax refund into two or three different bank accounts. This can be useful if you want to split your refund between your checking account, savings account, and/or an investment account. You can also use split refunds to buy up to $5,000 in U.S. Series I Savings Bonds.
To split your refund, you will need to complete Form 8888, Allocation of Refund (Including Savings Bond Purchases). You can find this form on the IRS website. When you complete the form, you will need to list the bank accounts or investment accounts that you want to deposit your refund into. You will also need to specify the amount of money that you want to deposit into each account.
Once you have completed Form 8888, you will need to mail it to the IRS. You can find the mailing address on the form. The IRS will process your request and deposit your refund into the accounts that you specified.
Split refunds are a convenient way to manage your tax refund. By splitting your refund, you can put your money to work in different accounts and reach your financial goals faster.