Presentation Transcript

1. Refund Choices for 2012Personal Income taxAndrew D. Morris

2. 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.
3. 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
4. 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.
5. 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).
6. 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.
7. 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.
8. 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.
9. 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 retailpurchases.
10. 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.
11. Taxpayer Outreach and Support 24/7 telephone support. Instructions and telephone support in multiple languages. Websites at Department and the bank.