Allocation Of Refund

The L Income Fund’s investment objective is to achieve a low level of growth with a high emphasis on preservation of assets. Unlike the other four L Funds, the L Income Fund's asset allocation does not change quarterly. However, like the other funds, it is rebalanced daily to maintain its target investment mix. Form 8888 - Allocation of Refund (Including Savings Bond Purchases) (2015) free download and preview, download free printable template samples in PDF, Word and Excel formats.

You have several options on how to receive your federal income tax refund. You can:

• Split your direct deposit between two or three accounts
• Direct deposit your refund into a single checking account
• Receive your refund in a paper check
• Buy up to $5,000 in U.S. Series I Savings Bonds

Split Your Direct Deposit Between Two or Three Accounts

Split your direct deposit refund into two or three accounts with up to three different U.S. financial institutions. You can put some into your checking account, some in your savings account, or some in other accounts, such as an individual retirement arrangement or IRA. Use the Form 8888, Allocation of Refund (Including Savings Bond Purchase) PDF to split your refund. See Frequently Asked Questions about Splitting Federal Income Tax Returns for more information.

Direct Deposit Your Refund to a Single Checking or Savings Account

If you want to deposit your refund to just one account, you put the information directly on your tax return form. You don't need an extra form. It's safe and fast.

There are Limits on the Number of Direct Deposits to the Same Account

To fight fraud and identity theft, new IRS procedures effective January 2015 limit the number of refunds electronically deposited into a single financial account or pre-paid debit card to three. Direct deposits must be made to an account with your name on it. This new limitation protects you from preparers who collect tax preparation fees by depositing your refund into their own accounts. Also, preparers can't use the Form 8888 PDF to deposit any part of your refund into their own account or a joint account with you.

The fourth and subsequent refunds will convert automatically to a paper refund check and be mailed. Read more about Direct Deposit Limits here.

Receive Your Refund in a Paper Check

You can still choose to have a paper refund check mailed to you.

Buy up to $5,000 in U.S. Series I Savings Bonds

You can use part or all of your refund to buy U.S. Series I Savings Bonds and you can choose to direct deposit or receive a check in the mail for any unused portion of your refund.
Use the Form 8888 PDF to tell the IRS you want to buy U.S. savings bonds. See Using Your Income Tax Refund to Save by Buying U.S. Savings Bonds for more information.

Include the EITC Logo on Your Fact Sheet

Add the EITC logo with the 'Life's Easier with EITC' tag line to your fact sheet. See our EITC Logo Guidelines to ensure you are using the logo properly and for directions on including.

More Fact Sheets

• Low Income Tax Clinic (LITC)

By: Xavier Epps, Financial Adviser and Owner of XNE Financial Advising, LLC

With the end of the calendar year right around the corner and the holiday season coming to an end, many Americans are gearing up for another busy season…the TAX SEASON! Some already know what they’d like to do with a tax refund if they receive one, and some have embedded plans into their minds on how to utilize refunds right after they’ve received it (i.e., when someone blindly comments, “I know what I’m going to do with my tax refund next year” after they notice they didn’t do anything of significance with the current refund). Learning how to plan wisely for usage of a tax refund is the key to financial success in 2014 and many years to come.

Internal Revenue Service recently issued statistics for the 2013 season and 147.2 million individual income tax returns we’re processed by the IRS (down 0.04 percent from 2012). Of these 147.2 million returns processed, 74.2% received a refund which equaled $299.86 billion distributed with an average refund of $2,925. A creative way to utilize a tax refund is supplementing it with your regular monthly earnings. Assume you receive the average refund of $2,925 in February 2014, instead of spending it all in one or two months, place the whole refund in a high-yield savings account (more interest than a traditional financial institution) and draw off the refund each month over a ten month period ($292.50 per month). If you’re unable to deploy that tactic, try to use these four allocation breakouts instead:

• 15 percent emergency savings

• 20 percent personal savings

• 25 percent debt reduction

• 40 percent discretionary purchases (you’re going to spend, let’s do it wisely)

As money touches our hands (or bank accounts), we tend to forget about all the financial issues we may have experienced the previous year (i.e., car issues, health procedures, unexpected home expenditures, etc…). In order to prepare for these issues, we should be ready to allocate funds from tax refunds to cover most or some of possible issues in 2014 (76% of Americans are Living Paycheck-to-Paycheck). Using the 2013 tax refund average of $2,925, an emergency savings will have a balance of $438.75, personal savings $585, and debts reduced by $731.25. By saving funds and reducing debts, you’re establishing a solid foundation towards a better year financially compared to the last, it also means less earnings needed to pay down debts each month (smaller minimum monthly payment) throughout the year which allows for more discretionary spending as well as funds to be allocated towards a savings account each month.

Now it’s time to re-think how to utilize a tax refund to achieve maximum optimization of your household finances in 2014!

888 Allocation Of Refund

Form 8888 Allocation Of Refund 2016

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Allocation Of Refund 8888

• Written by Guest Blogger March 1, 2014

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