Is Your Tax Refund Safe?

For the most part, your tax refund is safe. There are few instances in which your fecund may be in jeopardy. Thieves are on high-alert during tax season, watching bank accounts and mailboxes. Here a few tips you can use to maximize the safety of your refund.

Use a Secure Banking Institution

It is best to use a well-known and reputable banking institution. This helps provide some reassurance that your bank will not be hacked and funds stolen. Security breaches do not happen often, especially with banking institutions, but using a larger institution is often a better idea due to the increased security measures put in place.

File Electronically

Filing electronically really is the safest way to file your taxes. When you file electronically, select the direct deposit option. This is the most secure option. The IRS computer system is very secure.

Paper Checks

Paper checks are the most vulnerable. These can get lost or stolen during mail delivery. Mistakes do happen where mail is delivered to the wrong home, and in most cases, the checks are returned for redelivery. If you do not receive your refund by the estimated date given, contact the IRS to inquire.

Always know when your refund is expected. Allow an extra 48 hours in case there is a backup in the mail system or computer processing of your refund. When your refund is definitely late, you can view the status of your refund on the IRS website. When additional questions exist, contact the IRS via phone and patiently wait for your turn in line as wait times are substantial.

Image credit: Andrew Brody