WASHINGTON- The Treasury Department is offering to put tax refunds on prepaid debit cards for low-income taxpayers who don't have bank accounts.
The department announced Thursday that it will send letters to 600,000 households next week, offering to put their tax refunds on the debit cards, which can be used to get money from ATM machines or to buy goods and services from retailers.
The Internal Revenue Service encourages taxpayers to have their tax refunds deposited directly into bank accounts. For those without bank accounts, the debit cards will allow them to avoid check-cashing fees.
Deputy Treasury Secretary Neal Wolin said taxpayers can get refunds faster with the debit cards than with checks.