Why you should set up direct deposit with the IRS now — and correct errors, too

The IRS will give you an opportunity this tax season to establish direct deposit or fix errors. There’s a lot to know.


Sarah Tew/CNET

The IRS has just begun accepting and processing 2020 tax returns. Whether you submit your return now or wait until later in the tax-filing season — the deadline is April 15 — you should strongly consider setting up direct deposit with the IRS when you file. In addition to benefits when it comes to receiving your tax refund (how to track it), there are also implications for a future third stimulus check, which could arrive before the end of tax season. (Here’s whether the IRS would use your 2019 or 2020 taxes for a third check.)

Direct deposit has been the most used payment method for stimulus checks. In fact, the IRS and US Treasury sent out more than 100 million payments by direct deposit with the second stimulus check. And more than 80% of taxpayers already use direct deposit to receive their tax refunds, according to Benefits.gov. Some people, such as Social Security beneficiaries, are even required by the US Treasury to use direct deposit to receive

Read More View More Why you should set up direct deposit with the IRS now — and correct errors, too