The IRS requires at least two choices for splitting the refund, such as:
✅ Direct deposit into multiple bank accounts
✅ Purchasing U.S. savings bonds
✅ Receiving part of the refund as a paper check
Steps to Fix the Error in TaxWise
Open the Tax Return
Launch TaxWise and open the affected return.
Navigate to Form 8888
Locate Form 8888 - Allocation of Refund (Including Savings Bond Purchases) in the return’s forms list.
Verify Refund Allocation
Ensure that at least two refund options are selected:
Direct Deposit to one or more bank accounts
Savings Bond Purchase (if allowed)
Paper Check for part of the refund
Correct the Refund Distribution
If only one option is selected, add a second option (e.g., split between checking and savings accounts).
Make sure the total refund amount adds up correctly across all selected options.
Check for Amended Returns (If Applicable)
If filing an amended return (Form 1040-X), remove the savings bond option, as the IRS does not allow savings bond purchases from amended return refunds.
Validate and Resubmit
Run Diagnostics in TaxWise to check for errors.
Save and resubmit the return once the issue is resolved.
Key Takeaways
✅ Form 8888 requires at least two refund options (direct deposit, savings bond, paper check).
✅ Savings bonds are NOT allowed on amended returns (Form 1040-X).
✅ Ensure the refund total is correctly distributed among the selected options.
✅ Run diagnostics before submitting to confirm the issue is resolved.
Following these steps will allow you to proceed with a correctly allocated refund! 🚀