Buy Savings Bonds With Your Income Tax Refund

The year 2009 income tax return will be the firstknow where to send the rest of your money.
time that taxpayers will be able to use their incomeIf the refund happens to be an exact multiple of
tax refund to purchase up to $5000 in low-risk, liquidfifty, the taxpayer can indicate that all of the refund
Treasury I Bonds. The Treasury Bonds pay interestbe used for I Bonds. This is done by filling out the
and help protect the investor against inflation.direct deposit information on your income tax return,
The bonds are issued in the taxpayer's name and if itand not filing Form 8888.
is a refund from a joint return, the refund is issued inTaxpayers receive their Treasury Bonds through the
the names of both taxpayers. There are nomail.
beneficiaries to the bonds. You can purchase theIf there is an error on an income tax return, in regard
bonds even if you do not have a TreasuryDirectto calculating a refund, bonds will not be purchased.
account.Bonds will also not be issued if the refund is offset,
You simply use Form 8888 and enter the routingor the request is not made in multiples of fifty. When
number 043736881 and check the box marked,this happens, the purchase is canceled and all of the
savings. Use BONDS as your account number.tax refund is issued through the mail.
I Bond requests are done in multiples of fifty and theWhen a taxpayer requests bonds, they can track
IRS will need a direct deposit routing number for thethem, after they have received the balance of the
balance of your refund. If you have a $500 refundrefund, by visiting the Treasury Retail Securities site.
and you request $250 in I Bonds, the IRS needs to