Virginia Tax Refunds Now in Prepaid Debit Card

Virginians who received paper checks for their income tax refunds will only have two options beginning next year: direct deposit or prepaid debit card.

A requirement in the 2012-2014 Appropriations Act requires the change, beginning with tax year 2012 returns.  It's part of a cost-savings initiative, according to the Virginia Department of Taxation website.

How The Refund Debit Card Works

All Virginia Tax Refund Debit Cards will be a non-reloadable MasterCard® debit card. To activate, card holders will be asked to use Xerox's Go Program^® to verify their identity.  They will be asked to provide information from their tax return and create a four-digit Personal Identification Number (PIN).

Residents will be able to see the card balance -- the full amount of their refund -- once the card is activated.  Funds will immediately be available upon activating the card.

Joint filers will receive two cards, one issued in each name.  Each filer will have equal access to the joint tax refund, once the cards are activated.  If preferred, only one card can be activated to use the refund and access the full amount.

Fees May Apply

If choosing the debit card option, residents should be aware that fees may be charged to the card for certain transactions, such as cash withdrawals from ATMS or calling the Go Program^® with questions more than twice monthly.

Once activated, a $3 fee will be charged to the card after six months of inactivity.

Making Corrections

If the refund amount on the card is not what was expected or the taxpayer thinks it’s incorrect, a letter explaining why should be mailed within 10 days, according to the Virginia Department of Taxation website.

To make the refund process simpler, the department is reminding all Virginia residents to ensure their personal information is up to date and accurate.

Residents who chose to use direct deposit should ensure their bank account information is correct.

These steps will help ensure a refund is made without error and in a timely manner.

For more information about the Virginia Tax Refund Debit Cards, visit the Virginia Department of Taxation’s website.