In addition to having your tax return directly deposited into your bank account, the IRS also gives you the option to purchase US Savings Bonds (up to $5,000).
Here are a few things they want you to know regarding this option:
- You may use a portion of your refund to purchase up to $5,000 in U.S. Series I Savings Bonds.
- The total amount of saving bonds purchased must be a multiple of $50. Additional money over the specified amount must be deposited into another financial account – such as a checking or savings account.
- The bonds will be issued in your name. For married taxpayers filing a joint return, the bonds will be issued in the names of both spouses.
- You will receive the U.S. savings bonds in the mail.
- You normally select this option by filing Form 8888, Direct Deposit of Refund to More Than One Account.
Form 8888 has step-by-step instructions on how to select this option and how to specify the amount of your refund you want to use to purchase savings bonds.
How many of you will use this option when claiming your refund this year? If not, what do you plan on doing with the money? If you are struggling financially, you can also use your refund as a huge budget helper! Leave a comment below!
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Personally, we are not going to use this option because we plan on applying our refund to debt repayment.