New federal tax refund debit cards for taxpayers without bank accounts
No bank account, no problem. That’s the U.S. Treasury Department’s new mantra.
Treasury officials launched a pilot program offering low-cost, prepaid debit cards to taxpayers who may not have a bank account, just in time to have their 2010 federal tax refunds directly added to the cards.
Around 600,000 low- and moderate-income individuals across the country will soon get a letter from Uncle Sam giving them the change to have a MyAccountCard Visa Prepaid Debit Card.
This is the latest move by the federal government to go paperless. Last summer, the Obama Administration announced that it wanted all federal payments to be electronic by 2013. At that time, taxes weren’t specifically mentioned.
“This pilot program will provide low- and moderate-income Americans with a low-cost option for faster delivery of their federal tax refund,” said Deputy Secretary of the Treasury Neal Wolin in the official announcement of the program. “This innovative card can be used for everyday financial transactions, such as receiving wages by direct deposit, withdrawing cash, making purchases, paying bills and building savings safely and conveniently, giving users more control over their financial futures.”
