The Internal Revenue Service wants taxpayers to know that they can receive their tax refunds this year in the form of a U.S. savings bond made out in someone else’s name.
Last year, if the taxpayer chose to receive a savings bond as part of the refund, it could only be issued in the taxpayers’ name. This year, taxpayers can designate anyone to receive a savings bond and also designate the co-owner or beneficiary. Also a new section was added to Form 8888, Allocation of Refund (Including Savings Bond Purchases), for entering savings bond information so that taxpayers no longer need to enter a pre-specified routing number. Instead, taxpayers will enter the bond owner’s name. The savings bonds will be mailed to the taxpayer or the person designated on the form.
In addition to savings bonds, taxpayers can receive their refunds in the form of payments to retirement accounts, mutual funds, cash directly deposited to a checking or savings account, and a traditional check.
By March 4, the IRS had issued more than 52 million refunds worth $161 billion for an average refund of $3,070.
Taxpayers who claim a tax refund on Form 1040 can use Form 8888 to split their refunds, the IRS noted. Refunds can be directed into bank accounts and other financial institutions where their mutual funds or retirement accounts are managed and to purchase U.S. Series I Savings Bonds.
Taxpayers can choose to use a portion of the refund to buy up to $5,000 in low-risk savings bonds, which earn interest and protect owners against inflation. The bonds must be purchased in $50 increments. Direct deposit of any remaining refund amounts is no longer required. Paper checks can be requested for the balance.
During 2010, more than 99,000 bonds were purchased using Form 8888, totaling more than $11 million. To check the status of a bond purchase request, go to the “
The filing season statistics for the week ending March 4 are provided below:
2011 FILING SEASON STATISTICS | |||||
Cumulative through the weeks ending 03/05/10 and 03/04/11 | |||||
Individual Income Tax Returns | 2010 | 2011 | % Change | ||
Total Receipts | 61,287,000 | 60,536,000 | -1.2% | ||
Total Processed | 57,211,000 | 58,282,000 | 1.9% | ||
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E-filing Receipts: |
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TOTAL | 51,600,000 | 53,863,000 | 4.4% | ||
Tax Professionals | 31,880,000 | 32,680,000 | 2.5% | ||
Self-prepared | 19,720,000 | 21,182,000 | 7.4% | ||
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Web Usage: |
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Visits to IRS.gov | 109,663,929 | 119,793,481 | 9.2 | ||
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Total Refunds: |
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Number | 51,980,000 | 52,564,000 | 1.1% | ||
Amount | $160.185 | Billion | $161.345 | Billion | 0.7% |
Average refund | $3,082 | $3,070 | -0.4% | ||
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Direct Deposit Refunds: |
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Number | 44,032,,000 | 45,357,000 | 3.0% | ||
Amount | $143.600 | Billion | $145.972 | Billion | 1.7% |
Average refund | $3,261 | $3,218 | -1.3% | ||
