46.4 Getting Your Refund

If you show an overpayment of tax on your 2012 return, you can have a refund check mailed to you or have the IRS directly deposit the refund into as many as three bank, brokerage, or mutual-fund accounts; see below. For a direct deposit you must provide the IRS with the correct routing information for your account. On Form 1040 and 1040A, you can apply all or part of your refund to your 2013 estimated tax; this is an irrevocable election.

Direct-deposit refund option.

If you want the IRS to directly deposit your refund into only one account, just give the IRS the appropriate routing and account numbers on the refund line of your return. If you want the refund to be directly deposited into two or three accounts, File Form 8888 with your Form 1040, 1040A, or 1040EZ. You can have the refund directly deposited into a checking or savings account, an online Treasury Direct account, or even to an IRA (8.1) or health savings account (12.9). If you want the deposit to go into an IRA, you must establish the IRA before you request direct deposit. Make sure that you notify the IRA trustee if you want the deposit to count as an IRA contribution for 2012 (rather than for 2013 when the deposit is made). To count as a 2012 IRA contribution, the direct deposit must actually be made to the IRA by the April 15, 2013 due date for your return (extensions are disregarded).

If you file Form 8379 (see below) for a refund as an injured spouse, you cannot use Form 8888.

Checking refund status online or by phone.

You can check the status of your refund online at www.irs.gov (click on “Where’s My Refund”). You will need to provide the Social Security number shown on the return (or the first Social Security number if you filed a joint return), your filing status, and the amount of the refund. You also can check the status of your refund by downloading the IRS2Go app, by calling the automated refund information phone number 1-800-829-4477, or by calling 1-800-829-1040.

Caution

Direct Deposit of Joint Refund

If you are due a refund on a joint return, your financial institution may reject a request to have a direct deposit of the joint refund made to an individual account or IRA. If the direct deposit is rejected, the IRS will mail you a refund check.

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Form 8379: Injured spouse may get refund that was withheld to pay spouse’s debts.

If a refund was due on a a joint return that you filed with a spouse who owed child or spousal support, federal student loans, or state income tax, the Treasury Department’s Financial Management Service (FMS) may have withheld payment of the refund to cover the obligations. If your spouse owed federal taxes, the refund may have been offset by the IRS. If you are not liable for the past-due payments, and your tax payments (withholdings or estimated tax installments) or refundable credits exceed your income reported on the joint return, you may file Form 8379 to get back your share of the refund.

Penalty for filing excessive refund claim.

A 20% penalty can apply to an excessive claim for refund or credit on an original or on an amended return (47.9). The penalty is 20% of the “excessive” amount, the excess of the refund or credit claimed over the amount allowed, unless there is a reasonable basis for the amount claimed.

The penalty does not apply to claims relating to the earned income credit (25.10). It also does not apply to any portion of the excess that is subject to the accuracy-related penalties (including the penalty for understatements due to reportable or listed transactions), or the fraud penalty (48.6).

Planning Reminder

Interest Not Paid on Most Refunds

If your 2012 return is filed on or before the April 15, 2013, filing deadline, the IRS does not have to pay interest if the refund is issued before May 31, 2013, which is 46 days after the April 15 filing due date. If the return is filed after April 15, 2013, with or without an extension, no interest is due on refunds issued within 45 days after the actual filing date. If the overpayment is not refunded within 45 days, interest is paid from the date the tax was overpaid up to a date determined by the IRS that can be as much as 30 days before the date of the refund check.

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