Expecting a income tax refund this tax year? Do you want your refund sent by check, Direct Deposit or Bonds? That’s right, taxpayers have the option of receiving their federal income tax refund in the form of U.S. Series 1 Savings Bonds.

In order for taxpayers to receive their income tax refund in Savings Bonds, Tax Form 8888, Allocation of Refund (Including Savings Bond Purchases) must be completed.

Here are the guidelines and rules taxpayers should know when contemplating a tax refund in the form of U.S. Savings Bonds:

• Taxpayers must complete and attach Tax Form 8888 Allocation of Refund (Including Savings Bond Purchases).
• Taxpayers can allocate all or a portion of their tax return in the form of bonds.
• Allocation must be made in multiples of $50.
• The maximum dollar amount that can be used to buy Savings Bonds is $5000.
• You can buy bonds for yourself (and your spouse, if filing jointly).
• You can buy bonds for someone other than yourself.
• You can buy bonds for yourself, your spouse and someone else.
• You can indicate a co-owner or beneficiary on the bond registration.
• The bonds will be registered in the name shown in the appropriate lines of tax form 8888.

Taxpayers may not the requested Savings Bond Allocation if:

• Any information on your Tax Form 8888 is crossed off or whited out, the IRS will reject your allocation of refund and savings bond purchases, and send you a check instead.
• The bond request amounts are not in mulitples of $50
• The total amount of all bond allocations is over $5,000.
• Your refund is decreased because of a math error (you will receive a check instead).
• Your refund is offset for any reason (ex: part of your refund amount is deducted to pay past-due Federal Tax amounts).

If you make a math error that increases your tax return amount, the difference will be paid in the form of a check.

So now that you know more about income tax refunds, would you like your income tax refund in Savings Bonds?