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17/01/2011 -
This year, there will be a new aspect to the necessary evil that is tax season.The U.S. Department of the Treasury recently announced that they will begin a pilot program that will offer prepaid debit cards supplied by the government to some low-income taxpayers who don't have bank accounts, reports the Associated Press.
For those with bank accounts, tax returns can be directly deposited into their checking or savings. But those who do not have such accounts previously had to wait until the Internal Revenue Service mailed them a check.
Beginning this year, letters will be sent to 600,000 qualifying households in the coming weeks to invite tax payers to take part in the pilot program. Participants will receive one of four offers that the government is testing: a card with no monthly fee and no linked savings account; a card with no monthly fee and a linked savings account; a card with a $4.95 monthly fee and no linked savings account; and a card with a $4.95 monthly fee and a linked savings account.
According to the Journal of Accountancy, these Visa debit cards will be administered by Bonneville Bank and managed by the bank's prepaid debit card program manager, Green Dot. The cards can be used to get cash from ATMs or to make purchases.
