Refund Choices for 2012 Personal Income tax Andrew D. Morris 1

Tax Refund Choices for Taxpayers Direct deposit  Fast, convenient, secure and accurate.  Funds available immediately. Check Debit Card – New Option  Fast, convenient, secure and accurate.  Funds available immediately. 2

Debit Cards - Convenient and Flexible  Option for taxpayers that don’t have bank accounts (approximately 9.8% of NYS population).  Cost efficient.  Safe and provide protection against loss and fraud.  Provide options for taxpayers who don’t opt for direct deposit to – Deposit refund to a bank account – Make withdrawals and purchases 3

Debit Card - Savings  Issuing tax refunds by paper check is costly.  Checks - Average Cost is $0.58.  Debit Cards – No Cost to the NYS Taxation and Finance. 4

How Does the Card Work?  NYS Taxation and Finance determines the taxpayer refund and transfers the amount to the card issuer (the bank).  The bank creates an account in the taxpayer’s name in the amount of the refund.  Taxpayer can then use the debit card to make purchases or withdrawals until the funds are exhausted.  Once the funds are exhausted, the account is closed.  Taxpayer can’t make personal deposits to the account. Only NYS Tax and Finance can fund the card (single-load card). 5

Debit Card Activation  Taxpayers will receive their debit card by mail. Joint filers will receive two cards in one envelope addressed to both spouses – same bank account.  Taxpayer can call or go online to activate the card.  Detailed instructions will be provided on how the card can be used.  Once the card is activated, the taxpayer will be given the account balance and may begin using it immediately.  Taxpayer may be asked to establish a PIN, if using at an ATM. 6

Debit Card Usage and Fees Access & Fees  Taxpayers need multiple, accessible ways to get refunds without paying fees.  Funds available at banks, through in-network and out-of-network ATMs and through point-of-sale or online purchases. 7

Debit Card - Cash Withdrawals Bank withdrawal  No fee for the first withdrawal from any bank or credit union that accepts MasterCard. ATM withdrawal  In-network ATM withdrawals are free.  Non-network cash withdrawals will be charged a surcharge and fee per transaction. 8

Debit Card – Use for Purchases  Cards can be used for purchases wherever MasterCard is accepted. – Online – At retail locations  Taxpayers can also get cash back when making retail purchases.  No fee for online or retail purchases. 9

10 Standard Free Debit Card Services First withdrawal at bank or credit unionFree Retail and online purchasesFree Cash back with purchasesFree In-network ATM withdrawalsFree Telephone and web account balance InquiriesFree ATM account balance inquires in-network and non-networkFree ATM denial of withdrawalFree Replacement of a lost or stolen cardFree Reissued card after expiration dateFree Optional Services requiring a fee or surcharge Non-network ATM withdrawals$1.00 (plus surcharge) After the first free bank or credit union withdrawal$1.00 Foreign ATM withdrawal$1.00 (plus a surcharge at non-network ATM) Foreign Currency18% Expedited debit card deliver$10.00

Taxpayer Outreach and Support  Clear language instructions.  Card mailer in English and Spanish.  Communication to practitioners and software vendors.  Communication to state legislators.  Outreach to taxpayers through community groups. 11

Taxpayer Outreach and Support  24/7 telephone support.  Instructions and telephone support in multiple languages.  Websites at Department and the bank. 12