La Quinta, CA
(760) 895-3516

Monday, May 11, 2015

U.S. Tax Refund Direct Deposit to Canadian Bank (Money Wire)

For U.S. income tax payers living in Canada who will receive a refund, it is often asked whether you can have a U.S. tax refund directly deposited to your Canadian bank account. This depends on your status and if you are living permanently in Canada.

Receiving a U.S. Income Tax Refund via Direct Deposit (Wire) to Canadian Bank

Because U.S. tax refund cheques can take more than 12 weeks to receive for offshore income tax payers (Canada may be a little bit quicker), the U.S. Federal Government does allow U.S. tax refunds to be directly deposited into U.S. taxpayer's accounts.

To be eligable for U.S. tax refund direct deposit in Canada
  • You must live perminently in Canada
  • You must have a U.S. tax refund due to you
  • You must use the Direct Deposit option on your U.S. tax return
  • There may be wire transfer fees from your bank because of the foreign money wire

Most States Do Not Issue Foreign Direct Deposit

The same is not true for most states, including California. If you are due a state income tax refund from California, it will have to be mailed.

Remember to have your refund sent to a secure mailbox (P.O. Box or mailbox with lock and key) if you are having a cheque sent to you in the mail to reduce the risk of theft.

Are you living in Canada and need U.S. income tax preparation? With years of experience, Borders Bookkeeping can help you file U.S. tax returns, FBAR FinCen report 114, and any applicable tax forms.

Borders Bookkeeping

(760) 895-3516
(403) 800-2458