What's the difference between direct deposit and direct debit?

Created by Shubha Bisht, Modified on Wed, 24 Jan 2024 at 04:42 PM by Shubha Bisht

Direct deposit and direct debit are two of the fastest ways to send money between your bank account and the IRS. A direct deposit lets you receive money directly into your account, while direct debit lets you send money directly from your account.

Direct deposit: You can deposit your refund into one, two, or even three accounts. Even if you don’t have a checking account, there are other refund options.
Direct debit: You can pay your tax bill directly from your bank account through a process called electronic funds withdrawal. Even if you don’t have a checking account, there are other payment options.

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