IRS Form 8888 Allocation of Refund (including Savings Bond Purchases) is used by taxpayers who want their refunds to be deposited into more than one account or used to purchase U.S. Series I Savings Bonds.
- The taxpayer may split his or her refund into as many as three financial accounts. For example, one might designate part of the refund be deposited into a savings account, part into a checking account, and part into a retirement fund.
- Other examples of financial accounts eligible to receive deposits include health savings accounts, Coverdell education savings accounts, and taxpayers may also use the split-refund option to purchase U.S. Series I Savings Bonds.
- The refund may be used to buy up to $5,000 in low-risk, liquid U.S. Series I Savings Bonds, which earn interest and protect owners against inflation. An I Bond request must be a multiple of $50.
- This option is available for tax returns filed either on paper or electronically.
In TaxACT, the information for completing Form 8888 is entered during the filing process and the form will automatically be generated by the program if it is applicable to the return.
- From within your TaxACT return (Online or Desktop) click Filing to begin the filing steps
- Continue to the screen titled E-Filing - Purchase Savings Bonds to purchase U.S. Series I Savings Bonds
- Continue to the screen titled E-Filing - Direct Deposit Bank information and select Two or Three to deposit your refund into multiple accounts. Enter the information for the first account, then click Continue to enter information for another account.
Please note: In an effort to combat fraud and identity theft, new IRS procedures effective January 2015 will limit the number of refunds electronically deposited into a single financial account or pre-paid debit card to three. The fourth and subsequent refunds automatically will convert to a paper refund check and be mailed to the taxpayer.