![]() Department of the Treasury’s pilot program delivered tax refunds electronically and increased access to the mainstream financial sector for a small sample of the low- and moderate-income population. adults are unbanked and about 43 million are underbanked (FDIC 2009) 1 access to mainstream financial services would bring these adults federally insured accounts to build savings, cash checks, pay bills, and avoid expensive alternative financial services. Many families opt to receive a check or turn to alternative financial services to access their refunds or cash their refund checks, which may undermine financial access and asset-building goals. Many low- and moderate-income working families receive a sizable federal tax refund, primarily through refundable tax credits such as the earned income tax credit (EITC). Beyond this, electronic delivery provides tax filers faster, safer and more reliable access to tax refunds, and can improve low- and moderate-income tax filers’ access to mainstream financial services, a goal of Title XII of the Dodd-Frank Wall Street Reform and Consumer Protection Act. One of the benefits of electronic delivery versus paper checks is lower administrative cost for the federal government-roughly one-tenth the cost of a paper check. Įlectronic delivery of tax refunds through direct deposit to bank accounts is used by most upper-income families, but has so far eluded many low- and moderate-income families. 19 How Do Individual- and Local-Level Characteristics Influence Use of the MyAccountCard?. 18 Product Messaging-Safety versus Convenience. 13 How Do MyAccountCard Features and Card Messaging Influence Card Take-Up and Use?. 12 Who Applied for and Received the MyAccountCard?.
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