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For the 2012 tax season, many Americans who were owed refunds didn’t receive a familiar check in the mail. They got a prepaid debit card instead. At least six states issued their tax refunds on debit cards, in a move they say will save money for both the refund recipients and the government.
Can we expect to see more states issue debit cards for tax refunds? The states that are doing it say there are many advantages of plastic over paper checks. The potential savings are significant: up to $1 million annually, according to some state officials. Many states that have already switched to plastic payments for unemployment benefits and food stamps, say it’s a natural trend.
But with every new program there are risks as well as rewards. Changing the way tax refunds are distributed can be challenging, especially for those who are not accustomed to using debit cards.
Join GOVERNING’s editorial staff on Wednesday, September 26 at 2 p.m. ET for a live, interactive online forum as we discuss how and why a growing number of states are replacing paper tax refund checks with debit cards.
The online forum will cover:
Tod Newcombe (moderator)
Public Sector Development
Federation of Tax Administrators
Chief Financial Officer
Oklahoma Tax Commission
Department of Revenue Services
State of Connecticut
For questions or more information, please contact:
800-917-7732 ext. 1410