How to set up direct deposit for your tax refund

As we rapidly approach the April 15 tax deadline, many filers are scrambling to complete their returns on time. The good news is many will be rewarded with a tax refund.

As of March 21, 2025, the IRS issued a total of 55,716,000 refunds equaling $179.469 billion. The average refund amount is $3,221.

If you’re expecting a refund, you probably want to get your hands on the money as soon as possible. And the best way to do that is to receive your funds as a direct deposit. Here’s how to set up direct deposit and ensure your refund is available ASAP.

If you’re expecting a refund this year, the IRS allows you to choose how you want to receive it:

Direct deposit into your checking, savings, or retirement account
Paper check sent to the address on your tax return
Prepaid debit card
Mobile payment app that accepts direct deposits

Direct deposit is typically the fastest method — especially if you file your taxes electronically — which is probably why eight in 10 taxpayers choose this option. Most taxpayers get their refund within 21 days. However, it could take longer if there are issues with your tax return or you entered incorrect banking information.

If you select direct deposit, you can choose to split your refund across up to three bank accounts. When wrapping up your tax return, the online tax preparation software you’re using will ask you for the bank account and routing number for the account you want the money deposited into. You can find this information on your account’s checks, or by logging into your online banking account.

If you file a paper tax return, you can still receive your refund via direct deposit. However, it may take a bit longer to receive it because of slower processing times with paper returns. At the bottom of Form 1040, use lines 35a-d to fill in your direct deposit information for your tax refund.

Watch: 3 common tax refund mistakes and how to avoid them

Keep in mind that a tax refund isn’t “free” money. It’s income you earned throughout the year that was withheld by the IRS. So, when planning how to use your refund money, it’s best to think of it as another paycheck and not just a surprise windfall.

This is why it’s important to make a plan for that money before it hits your account. Here are a few ideas for putting your refund to good use:

Pad your emergency fund: Saving your refund for a rainy day may not sound like the most thrilling way to spend extra cash, but when the unexpected happens, you’ll be glad you did. Bonus points if you deposit your emergency fund into a high-yield savings account, which allows you to earn a higher rate than what the typical savings account offers. Right now, the best high-yield savings accounts still pay over 4% APY.
Pay off high-interest debt: Expensive debt payments make it more difficult to cover your everyday expenses and save for the future. Consider using some or all of your refund to knock out high-interest debt balances (such as credit cards) and free up more income to spend on the things you really care about.
Invest for the future: This may mean making an extra contribution to your retirement account or your child’s college savings account, investing in the stock market, or using the money to pay for a home improvement project that will boost the value of your home. Think carefully about where that money will have the most impact in your life and in the future.

If you e-file your taxes and opt for direct deposit, you can expect your refund within 21 days or less from the date the IRS accepts your return (as long as there are no issues with your return).

There are a few reasons why the IRS might mail a check rather than use direct deposit. Often, it’s because your routing or account number was entered incorrectly or belongs to a closed bank account. Some banks may also reject direct deposits due to mismatched names or other discrepancies.

The exact timing depends on your bank’s processing schedule. However, direct deposits from the IRS often become available early in the morning, between midnight and 6 a.m. local time.