As tax season gets underway, many Americans begin dreaming about what they’ll do with their expected tax return money. Some plan lavish vacations, while others begin home renovations or open savings account. This year, the IRS has made it easier than ever to begin building your savings with your tax refund using their Savings Bond purchase program.
Why Buy Savings Bonds?
While taxpayers could purchase savings bonds in previous tax years, this year they’ll be able to designate up to two other individuals to receive the bonds rather than being able to designate them only in their own names. This is great news for parents, grandparents, and others wishing to put money aside for children or dependents. Taxpayers can designate both a primary recipient and a co-owner or beneficiary for the savings bonds and can enter the names directly on the form rather than using a routing number.
Taxpayers who wish to purchase savings bonds with their returns will have the option to split their refunds, directing a portion of the money toward bond purchases and the rest to bank accounts. Benefits in purchasing savings bonds include low-risk, protection from inflation, and composite interest rates consisting of both a fixed rate and a rate that is adjustable based on inflation.
Where’s My Refund?
If you’ve filed for your refund and requested a savings bond from the IRS, you can check the status of your refund by going to the IRS website and clicking on the Where’s My Refund button. Depending on how you file, you may receive your refund in as little as 72 hours after your return has been received or as many as four weeks after mailing. Taxpayers who choose to file using the e-file system can expect faster refunds and a more secure filing process overall.
When you land on the Where’s My Refund page, be prepared to enter your social security number or taxpayer ID number, your filing status, and the amount of your anticipated refund. With this information you’ll be able to see both the status of your refund and of your requested savings bond purchase.
Choosing to build your savings by purchasing U.S. savings bonds with your tax refund gives you a safe, low-risk way to begin setting money aside for the future. Whether you purchase the bond for yourself, for a child, or for someone else, you can rest assured that your investment will pay out over the long term and that your money will be protected against inflation and risk.Tags: Invest Tax Refund, IRS Savings Bond Purchase Program, Savings Bonds