The IRS processed approximately 161,489,000 tax returns in 2024, a 0.9% increase from the previous year. While many taxpayers eagerly await refunds, not all receive one—only about 103,185,000 tax filers received refunds, leaving more than 58 million without one or owing money to the IRS.
For those receiving refunds, the method of payment can significantly affect how quickly they get their money. Here’s a closer look at the numbers and how you can optimize your tax refund experience.
Tax Refunds
Of the taxpayers who received refunds, 93,506,000 opted for direct deposit, the fastest way to get their money. However, 9,679,000 taxpayers still received paper checks, which take longer to process and deliver.
Benefits of Direct Deposit
The IRS strongly encourages taxpayers to use direct deposit for their refunds:
- Speed: Electronic filing combined with direct deposit ensures the fastest delivery.
- Convenience: Funds are deposited directly into your bank account.
- Reliability: Avoid delays caused by mailing paper checks.
To set up direct deposit, you’ll need your routing number and account number, which can be found in your online banking profile or obtained from your bank.
Open a Bank Account
If you don’t have a bank account, there are several options to get started:
FDIC-Insured Bank Accounts
Visit an FDIC-insured bank to open an account for receiving IRS direct deposits. These accounts provide a secure way to access your refund quickly.
Credit Union Accounts
Use the National Credit Union Locator Tool at https://mapping.ncua.gov/ to find credit unions in your area. These institutions often offer low-fee or no-fee accounts.
VBBP
Veterans without bank accounts can use the VBBP to access financial services through participating banks. This program offers tailored options for veterans to receive their tax refunds efficiently.
Other Alternatives
- Prepaid Debit Cards: Many prepaid cards allow direct deposit, as long as they include a routing and account number.
- Mobile Apps: Some financial apps also support direct deposit, offering a modern and convenient alternative for managing funds.
Direct Deposit Matters
With paper checks taking significantly longer to issue, direct deposit is the most practical option for those who need their refunds quickly. Taxpayers who are unbanked can follow IRS recommendations to set up financial accounts or choose alternative deposit methods.
By filing electronically and opting for direct deposit, you’ll ensure your refund is processed and delivered in the shortest time possible.
FAQs
How many tax filers received refunds in 2024?
About 103,185,000 taxpayers received refunds from the IRS.
How many received direct deposit refunds?
93,506,000 taxpayers received their refunds via direct deposit.
What is the fastest way to get a tax refund?
File electronically and choose direct deposit for the fastest refund.
How can I open a bank account for direct deposit?
Visit an FDIC-insured bank or use the National Credit Union Locator Tool.
What options do veterans have for direct deposit?
Veterans can use the Veterans Benefits Banking Program (VBBP).
