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Refund Choices for 2012Personal Income tax

Andrew D. Morris

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Tax Refund Choices for Taxpayers - 2012

Direct deposit Fast, convenient, secure and accurate. Funds available immediately.

Check

Debit Card – New Option Fast, convenient, secure and accurate. Funds available immediately.

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Debit Cards - Convenient and Flexible

Option for taxpayers that don’t have bank accounts (approximately 9.8% of NYS population).

Cost efficient.

Safe and provide protection against loss and fraud.

Provide options for taxpayers who don’t opt for direct deposit to

– Deposit refund to a bank account

– Make withdrawals and purchases

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Debit Card - Savings

Issuing tax refunds by paper check is costly.

Checks - Average Cost is $0.58.

Debit Cards – No Cost to the NYS Taxation and Finance.

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How Does the Card Work?

NYS Taxation and Finance determines the taxpayer refund and transfers the amount to the card issuer (the bank).

The bank creates an account in the taxpayer’s name in the amount of the refund.

Taxpayer can then use the debit card to make purchases or withdrawals until the funds are exhausted.

Once the funds are exhausted, the account is closed.

Taxpayer can’t make personal deposits to the account. Only NYS Tax and Finance can fund the card (single-load card).

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Debit Card Activation

Taxpayers will receive their debit card by mail. Joint filers will receive two cards in one envelope addressed to both spouses – same bank account.

Taxpayer can call or go online to activate the card.

Detailed instructions will be provided on how the card can be used.

Once the card is activated, the taxpayer will be given the account balance and may begin using it immediately.

Taxpayer may be asked to establish a PIN, if using at an ATM.

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Debit Card Usage and Fees

Access & Fees Taxpayers need multiple, accessible ways to get

refunds without paying fees.

Funds available at banks, through in-network and out-of-network ATMs and through point-of-sale or online purchases.

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Debit Card - Cash Withdrawals

Bank withdrawal

No fee for the first withdrawal from any bank or credit union that accepts MasterCard.

ATM withdrawal

In-network ATM withdrawals are free.

Non-network cash withdrawals will be charged a surcharge and fee per transaction.

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Debit Card – Use for Purchases

Cards can be used for purchases wherever MasterCard is accepted.

– Online

– At retail locations

Taxpayers can also get cash back when making retail purchases.

No fee for online or retail purchases.

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Standard Free Debit Card ServicesFirst withdrawal at bank or credit union FreeRetail and online purchases FreeCash back with purchases FreeIn-network ATM withdrawals FreeTelephone and web account balance Inquiries FreeATM account balance inquires in-network and non-network FreeATM denial of withdrawal FreeReplacement of a lost or stolen card FreeReissued card after expiration date Free

Optional Services requiring a fee or surchargeNon-network ATM withdrawals $1.00 (plus surcharge)

After the first free bank or credit union withdrawal $1.00

Foreign ATM withdrawal $1.00 (plus a surcharge at non-network ATM)

Foreign Currency 18%

Expedited debit card deliver $10.00

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Taxpayer Outreach and Support

Clear language instructions.

Card mailer in English and Spanish.

Communication to practitioners and software vendors.

Communication to state legislators.

Outreach to taxpayers through community groups.

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Taxpayer Outreach and Support

24/7 telephone support.

Instructions and telephone support in multiple languages.

Websites at Department and the bank.