This year, thousands of Americans will have the option to receive their tax refunds in the form of a prepaid card, instead of the standard paper check. The government announced that they will use these prepaid cards as a means to cut costs and give those without a bank account an easier way to get and use their tax return money. The option is available for 600,000 taxpayers whose annual income is under $35,000, and has been estimated to potentially save the government millions of dollars per year.
"This pilot program will provide low- and moderate-income Americans with a low-cost option for faster delivery of their federal tax refund," said Deputy Secretary of the Treasury Neal Wolin. "This innovative card can be used for everyday financial transactions, such as receiving wages by direct deposit, withdrawing cash, making purchases, paying bills, and building savings safely and conveniently, giving users more control over their financial futures."
Click here to read more about receiving your 2010 tax return on a prepaid card.
For more information, contact a member of Skoda Minotti's Tax Planning & Preparation Group by calling 440.449.6800.