Posted by Abundant Wealth Planning LLC

Understanding Form 8888 and all it Entails

Understanding Form 8888 and all it Entails

The Internal Revenue Service (IRS) Form 8888 is designed to allow taxpayers to divide their tax refunds into different financial accounts – up to three. It also helps them buy up to $5000 in paper series. You will be able to put part of your refund in a credit union, mutual fund brokerage, a health savings account (HSA), an individual retirement arrangement (IRA), an Archer MSA, etc. In other words, it does not limit taxpayers to the regular savings bond, checking accounts, and bank accounts.

Who Can File Form 8888

While all taxpayers can use form 8888, there are some conditions:

  • You cannot use Form 8888 to deposit money to a single account. Should you need only one account, use the direct deposit form on your tax return. 

  • If you want to deposit money into another person's account with the person's name, you cannot use Form 8888. You need an account with your name or your spouse's name. You can also use a joint account involving yourself.

  • Filing Form 8379 (Injured Spouse Allocation) disqualifies you from filing Form 8888. You also cannot use it with an amended tax return.

  • Be sure that your financial institution or bank accepts direct deposits before including it in Form 8888.

How to fill Form 8888

Part I: Direct Deposit

Lines 1a, 2a, 3aHere is where you will enter the refund amount you want in each account, up to three accounts. The minimum deposit you can have is $1. Should there be a delay in processing your return, the entire refund will go into the first account on Form 888. Qualified accounts are a credit union, checking, mutual funds, savings, ESA, MSA, IRS, HAS, etc.

Lines 1b, 2b, 3b: You need a nine digits routing number. For the first two digits, it must be 01 through 12 or 21 through 32.

Lines 1c, 2c, 3c: For account type, check a single box. You can contact your financial institution if you are confused. 

Lines 1d, 2d, 3d: You input your account number here – up to 17 characters. You can have letters, numbers, and hyphens, but not space or other symbols. You do not need the check number for the checking account. 

Part II: U.S. Series I Savings Bond Purchases

You can have as much as three savings bond registration. You should have the registrations in multiple of $50. Everything you will have in line 4, 5a, and 6a must be less than $5,000.

Line 4: Here is where you will have the amount you need to purchase your bond. The bonds will come in the name featured on your tax return. 

Lines 5a, 6a: Here is where you input the value of the bonds for yourself, spouse, and any other person. 

Lines 5b, 6b: Here is where you will have the name of the bond owner. You, your spouse, or anyone else could be the owner, but the name is a single person. The arrangement should be First and last name in that order. There should not be nicknames and print.

Lines 5c, 6c: This is the portion for beneficiaries or co-owners. You, your spouse, or anyone can be entered here. You enter the first and last name in that order. No nicknames and no symbols allowed.  

Where to Get Form 8888

You can get Form 8888 online at IRS Forms, Instructions & Publications website. All you have to do is type 8888 in the search box. You can also get in touch with the post office, check with the bank, or the nearest IRS Taxpayer Assistance Center for the form.

Uncle Sam can mail you any form, including Form 8888. All you need to do is visit IRS Forms and publication by U.S. Mail page online. 

Can You submit Form 8888 Electronically?

You can use the IRS e-file alongside many commercial tax software like TaxAct and TurboTax to split refunds with Form 8888. With the online filing, you can deposit directly into multiple accounts and get your refunds in 3 weeks or less.  

Where to Mail Form 8888?

There is also the option to mail Form 8888, the good old way. All you need do is go to Where to File Paper Tax Returns With or Without a Payment.

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