Hartford, CT - The Connecticut Department of Revenue Services (DRS) re-iterated Thursday 10 facts people need to know about the new policy for personal income tax refunds. Commissioner Kevin Sullivan noted that several states, as well as other State of Connecticut agencies, use similar debit card programs.
Taxpayers can:
Have their refund direct deposited into their bank account free of charge - this is the fastest method;
Be confident in knowing a refund debit card can only be accessed by a secure activation process;
Cash in the debit card at any bank or credit union affiliated with Visa by asking a teller for a no fee cash advance up to the full balance on the card. If desired, the cash can then be deposited into one or more bank accounts;
Get cash back on any debit card purchase with no fee;
Make free retail purchases anywhere Visa is accepted;
Use a Chase or People’s Bank ATM for no fee withdrawals of up to $800 per day;
Use at a non-Chase or non-People’s Bank ATM for up to three no fee withdrawals (other bank fees may apply);
Transfer the card balance to a Chase account free of charge;
Transfer the card balance to a non-Chase account for a $0.75 transaction fee(other bank fees may apply);
Pay bills online without a fee.
DRS also reminded people that Direct Deposit is the fastest and most secure way to receive their state income tax refund. However, for taxpayers who do not have a bank account, receiving their refund as a debit card eliminates any check cashing fees (as much as 10%).
The State Treasurer’s Office and DRS expect a combined savings in administrative and mailing costs of approximately $290,000 by issuing debit cards instead of refund checks. The state’s contract with Chase requires the bank to regard any information it receives from the state as confidential tax return information and prevents any disclosure or the use of such information for marketing purposes.
