State To Issue Tax Refunds Via Debit Card
by Christine Stuart | Jan 30, 2012 5:22pm
(15) Comments | Commenting has expired
Posted to: State Budget
(Updated 10:28 a.m., Tuesday) Department of Revenue Services Commissioner Kevin Sullivan announced a bold initiative Monday, which will give taxpayers an opportunity to receive their income tax refund on a debit card, instead of a check.
Those who prefer to receive theirs electronically through a direct deposit still have that option, but according to Sullivan more than 45 percent of refunds are issued by check.
“Issuing tax refunds as debit cards provides a security and convenience not available with paper checks,“ Sullivan said in a press release. “Couple that with the elimination of check cashing fees and the refund debit cards are a benefit for taxpayers and the state.”
The checks will still be issued for those receiving $10,000 more back from the state. It was unclear Monday, if the measure will save the state any money or how much it contracted with Chase to issue the cards. The contract is with the state Treasurer’s office.
There will be small fees associated with the card, such as a 75 cent fee if you want to transfer the balance to a bank account. People can avoid the fee by doing a cash advance at any bank that accepts Visa, or they can then take that cash and deposit it into their bank account.
The cards will benefit those without checking or savings accounts because they won’t have to pay the check cashing fee, Sarah Kaufman, a spokesman for the department, said.
Also if you have a checking account and wish to deposit the money it can be cashed by any bank in the state and then deposited into an account. And if you want to withdraw the money from an ATM, there’s no fee for using it at a People’s Bank or Chase ATM machine.
And if you forget to use the money for more than a year, Chase, not the state, will start taking back $1 per month. Last year, the department had a total of 17,474 refund checks that were not cashed. Of those, 11,745 were for amounts between $1 and $20.
Check out the debit card FAQ on the DRS website.
Tags: debit cards, income tax refund, checking, savings, JP Morgan Chase
(15) Comments
posted by: Disgruntled | January 30, 2012 6:07pm
$10,000 and up get checks. The rest get plastic with hidden fees and the “deal”
details are not being disclosed (always suspect) when the plan is laid out to the public. Let’s assume Jamie Dimon is not doing this for free.
posted by: Disgruntled | January 30, 2012 7:10pm
Do your own due diligence,Disgruntled!
I now know that Kevin Sullivan has his head up a part of his anatomy that most of us mere mortals would avoid trying.He must be special! The FAQ’s are laughable! Kevin DEFINITELY is going to work for Chase when he is booted out.Very pathetic.
Retroactive tax increases. Trolling for internet purchases where tax may/may not be due.And now this.
QUESTION 7: Where can I use my debit card?
ANSWER: You can use your debit card at:
Banks and Credit Unions displaying the VISA logo
ATMs
Retail locations (both store front businesses and on-line businesses) that accept VISA
Gas Stations to purchase fuel. (However, you will not be able to use the “pay at the pump” feature. You must go inside and pre-pay for all fuel purchases.)
For more details, please refer to the card carrier and the brochure that accompanied your Chase debit card
posted by: state_employee | January 30, 2012 7:48pm
This is just absolute criminal behavior. they are hoping that people lose their cards, don’t use them all, forget them etc. they are thieves. we pay our taxes and now they want to try and scam more money out of us.
posted by: perturbed | January 30, 2012 8:19pm
From the article:
“It was unclear Monday, if the measure will save the state any money or how much it contracted with Chase to issue the cards.”
I can absolutely guarantee this has already cost the taxpayers of CT money. It is extremely difficult to revise well-established state processes. This is true even when confronted with inefficient, wasteful procedures that warrant revisions, so there will eventually be a savings.
In this particular case, there was nothing broken, no problem that needed solving, and the all the required bureaucratic infrastructure was in place and running smoothly to issue checks. Preparing an agreement with a private, heavily regulated corporation and revising the payment medium—without question—involved a great deal of time and money. And there is no identifiable savings to the state. The only question is how much this was worth to Chase, and what they provided (and to whom) in return for the favor.
Another example of Malloy’s “public-private partnerships?” All I ever see out of these arrangements is a “public-to-private transfer of funds.”
—perturbed
posted by: Tessa Marquis | January 30, 2012 10:39pm
They should have contracted directly with community banks and credit unions and local institutions, not JPMorgan Chase.
Not sure how manufacturing a plastic card is less expensive for the State than a paper check if it is not reusable over the years.
But, I am feeling cranky tonight.
posted by: Scott2014 | January 30, 2012 11:11pm
The best and easiest solution is to do direct deposit into your checking account. You have the money quicker and with no fraud as with checks.
posted by: MPS | January 31, 2012 12:50am
Outrageous! These people are just unbelievable. Kevin Sullivan knows what is best for those whom will receive a tax refund in this state, especially those that will benefit from the new state earned income tax credit at my expense.
posted by: Upset.Citizen | January 31, 2012 7:13am
State employees beware! I’ll bet you your next(last?) paycheck that your debit card will be updated in the future to reflect your earnings!
How many of you know that we are going paperless soon? Not many of you! It’s no secret, just not discussed! They won’t tell me what we are going to either!
posted by: Matt W. | January 31, 2012 10:31am
Disgruntled: You hit the nail on the head! I’ve personally witnessed Jamie Dimon on the street in NY in front of the JPM building asking JPM employees at 8pm at night if they really needed to take that company car home or not. The only way this doesn’t cost the state is if (state_employee) is correct and a bunch of people lose these cards.
posted by: THREEFIFTHS | January 31, 2012 10:34am
Chase bank is nothing more then corporate vampires.Check this out.
The More Americans That Go On Food Stamps The More Money JP Morgan Makes.
http://theeconomiccollapseblog.com/archives/the-more-americans-that-go-on-food-stamps-the-more-money-jp-morgan-makes
Making Fortune on Poverty: JP Morgan’s Big Food Stamp Business
http://www.youtube.com/watch?v=3lA016FzmYg
posted by: ... | January 31, 2012 11:59am
It’s certainly an interesting plan. But the direct deposit or check is the wisest, and most profitable route. Save your refunds first, and then spend when you need it. Even if you only earn fractions of a penny per dollar deposited, it is still a profit off of returns.
And not being too critical, but if you don’t have a checking or savings account at a bank to tie your money to, that’s a bigger problem than what form you receive your refund in. Especially if you are raising a family, as kids need to understand the value of money beyond a magic plastic card.
posted by: UConnJim | January 31, 2012 12:00pm
So, if the state is returning MY money in the form of a debit card, then, Mr. Malloy, I will PAY my state withholding in the form of Starbucks, Home Depot, Applebees, and iTunes cards. What’s good for the gander is also good for the GOOSE.
posted by: RTFA | January 31, 2012 4:01pm
WOW, tin foil comes out.
If you want a direct deposit (ACH), the everything is fine, you get toy cash within a week. If you choose to not, then you get the prepaid card. My last job said you can either get direct deposit or get one of these cards. This card isn’t that bad, you can get your cash out via a cash advance at any bank.
Why get rid of checks, cause people don’t cash them, and it’s a nightmare accounting wise. Trust me,
posted by: bwg102 | January 31, 2012 8:06pm
Why does the DRS have to make it so inconvenient for me to use my own money?! Rather than just deposit a check, they want me to give out my account number OR use this bogus card, which I can than pay money to transfer my own money into my own account OR use at merchants and inconvenience them with processing fees that come with using these cards. I almost hope I end up owing the state money so I don’t have to jump through hoops to get my money.