Essential monetary dealings and financial services have genuinely increased the availability and accessibility of banks and financial platforms. There is a substantial increase in financial handlings, which is why financial services have been made transparent and practical than ever before. Similarly, the process of tax payment and submitting tax returns has allowed individuals to pay their responsibilities in an environment of transparency and reliability. Over the past few years, countries have made it practical and stress-free for various companies and individuals to pay their taxes. Similarly, banks have restructured themselves and have allowed technological input, increasing the number of taxpayers. These enhancements are mainly due to the high-tech development and progress, especially in implementing electronic filing and payment systems. In our previous article, you can learn how to calculate tax percentage from total. In this article, we will write about tax refund checks.
Where can I cash my tax refund check?
You can cash tax refund checks at grocery stores, or any U.S. bank or credit union can cash your federal refund check because it is drawn on the U.S. Treasury. Grocery stores will cash tax refund checks, government checks, cashiers’ checks, checks from insurance settlements, and 401k retirement disbursement checks.
To cash tax refund check, you can use the following locations:
- Albertson’s retail store where fees vary by location, and they will only cash up to $1,000.
- Kroger retail store $3 for checks up to $2,000, $5.50 for checks between $2,000 and $5,000.
- Walmart retail store $4 for checks under $1,000, $8 for checks over $1,000.
- Any U.S. bank
- Credit union
Governments worldwide have enforced income tax which is generated mainly through personal businesses and individuals working under them. According to the law, as responsible citizens, taxpayers are supposed to file an income tax return to analyze and evaluate their tax standings and obligations at the end of the year. This is the primary source of expenses and income generation for most governments, which is returned to the country’s citizens through well-maintained infrastructure, quality education, and ideal health services. Direct taxes are implemented on annual income, monetary gain, and total net worth. Other than that, gift taxes, duties, and property charges are also included in the direct taxes. Every individual who receives money, products, services, and the property is entitled to report their annual tax return. An individual who has given more than the due amount is subjected to return payment. This payment is made to the taxpayer when the taxpayers pay more than they owe, called a tax refund. To collect their extra amount, it is not necessary to have a bank account. Many American taxpayers are entitled to a cash federal tax refund without a valid bank account. It is undoubtedly good news for those functioning without a proper bank channel and hoping to receive a tax refund check without the right channel.
An average American is excited to receive the refund check but is mostly unaware of the process it takes to cash the refund check without a bank account. Using a check cashing platform usually elevates overall expenses. There is also a security threat to transfer a large sum of money from the bank in hand. However, you can still avoid excessive fees and keep the cash safe with different processes.
Direct deposit prepaid debit card
You can quickly get the refund check by opening a prepaid debit card account. With the help of this account, the IRS can easily handover the residual deposits. If you are a bluebird holder by American Express, you can receive direct monetary payments without additional expense. If you are above 18 and a US resident, then you are eligible for a Bluebird partnership. This account also comes with a family card feature allowing more than one family member to share the same account. Online tax documentation filers such as H&R Block and TaxSlayer have also helped their filers create a prepaid debit account for the exclusive purpose of tax returns. The same facility is offered as the Bluebird membership but with a little higher fee.
Through an app
The tax filers use another online option to receive the tax return, such as PayPal. PayPal has facilitated its users to deposit the refund check by uploading a picture of a physical check. However, in case of prompt funds withdrawal, the filers would need to pay a one percent fee. After 10 days, the money withdrawal is free of charge. Other than PayPal, there is another app by the name of Ingro money that allows you to cash a check. If you decide to pay a substantial 2% fee or five dollars, you can also get your extra money deposited directly to the Amazon gift card, a credit card, or any other prepaid card. You can also pick up an amount of fewer than 1000 dollars from MoneyGram.
Retail check cashing
If you do not prefer accumulating extra money into any electronica account, you can also consider retail check-cashing. They are affordable than the check-cashing platforms and are safe to use because of surveillance cameras in the parking lot. However, if you plan to check cash, you need to be aware of the surroundings in terms of security and secretly store the money using safety precautions or people’s presence. A few major platforms easily allow you to cash checks, including Albertson’s, Kroger, and Walmart. There are other grocery places such as Safeway, Publix, and FoodLines that can easily cash checks but fees and the withdrawal limit may vary from place to place.
Bank account with no fee
The easiest and convenient way to retrieve a tax refund is to open a bank account. With the help of a registered bank account, the tax refund is directly deposited to the account, and you can also deposit a physical check without any fees. If you are a legal US resident and 18 years or above, you can open a bank account at Chime as it consists of no monthly fee and operates without any overdraft fees.
If you are not living in the US and have no active American bank account, you can benefit through TransferWise. By opening up a TransfeWise multi-currency account, you can easily allow monetary deposits from over 30 countries and the IRS in the US with minimal or zero fees. You can also convert the US dollars to the local currency if you are residing outside the US. However, to create a TransferWise account, you need to deposit $20.
Using different account
You can take help from a family member or a relative to cash or deposit tax funds into their account. However, these deposits depend on the respective bank and their conditions, as they might require the owner to clear your name to access the funds. You will need the owners to endorse the check by submitting a letter saying “pay to the order of” followed by the name. The banks will also require the owner to sign the check. The process is easier, but IRS has advised and dissuaded depositing tax refunds to an account, not in your name.