Setting Up Direct Deposit (One or Multiple Accounts)

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.

Reasons you may not split your refund into more than one account in TaxAct:

  • The taxpayer or spouse has completed IRS Form 8379, Injured Spouse Allocation form.
  • The taxpayer has elected to have their fees paid out of their Federal Refund.

Note. The IRS Instructions for Form 8888 outline the following:

Your Entire Refund May Be Deposited in One Account. If there are any delays in the processing of your return by the IRS, your entire refund will be deposited in the first account listed on Form 8888. Make sure the first account you list on Form 8888 is an account you would want the entire refund deposited in if this happens.

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.

  1. From within your TaxAct return (Online or Desktop) click Filing to begin the filing steps
  2. Continue to the screen titled E-Filing - Direct Deposit Bank information. If you want any part of your return deposited into one or more bank accounts, select the number of accounts and enter the appropriate information.
  3. Check the box next to "Check here if you wish to purchase savings bonds with your federal refund," and then click Continue
  4. On the screen titled E-Filing - Purchase Savings Bonds for Yourself use the dropdown menu to select the dollar amount of U.S. Series I Savings Bonds you wish to purchase for yourself and your spouse, then click Continue
  5. On the screen titled E-Filing - Purchase Savings Bonds for Additional People, you can elect to purchase bonds for up to two additional people. Enter the requested information to make this purchase.

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.

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