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To get a faster tax refund, try using direct deposit to Venmo, PayPal, or Cash App: Here's how to set it up

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Key Points
  • Unlike traditional checking accounts, cash transfer apps like Venmo and PayPal make deposits available as soon as they're received.
  • If you have your tax refund directly deposited into a cash transfer app, the money may hit your account two days earlier.
  • The average tax refund so far this year is nearly $3,400, according to the IRS.

Tax day is just around the corner: You have until April 18 to file.

So far, the average refund this tax season is nearly $3,400, according to the most recent data from the IRS. If you want that money ASAP, file electronically, and opt for your refund to be "electronically deposited for free into your financial account," the tax agency says.

If you're already e-filing and using direct deposit, there are additional steps you can take that may speed up processing times. Whether you're e-filing directly with the IRS or if you're using a software service like TurboTax, or H&R Block, you can chose to have your return deposited into a cash transfer app like Venmo, PayPal, or Cash App.

Using a cash transfer app can speed up return processing times, but you have to make sure you have direct deposit set up. Here's how.

Sign up for direct deposit on a cash transfer app

If you have your refund directly deposited into a cash transfer app, like Venmo, PayPal, or Cash App, the money may hit your account two days earlier than if you were using a traditional bank.

Unlike most banks, cash transfer apps like Venmo make deposits available as soon as they're received, whereas a traditional checking account, at a brick-and-mortar bank, can take up to a week to process and make funds available.

Setting up direct deposit on each app works slightly differently.

How to set up tax refund direct deposit on Venmo

Once Venmo verifies your account, they can choose to give you the option of direct deposit. Here's how Venmo says you can find out your direct deposit information:

  • Go to the "you" tab by selecting the single person icon.
  • Tap the Settings gear in the top right then tap "direct deposit."
  • Tap "show account number" to get your Venmo account info along with the routing number that appears on the screen.
  • When you file your taxes, opt for direct deposit using those account details, and make sure to select "checking" as the account type.
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How to set up tax refund direct deposit on Cash App

In order to get enable direct despot on Cash App, you'll need an activated Cash Card. When you activate your Cash Card, you will immediately see your new account and routing numbers, according to the company.

To locate your account and routing number on Cash App:

  1. Tap the "banking "tab on your Cash App home screen.
  2. Tap the routing and account number below your balance.
  3. Use the options to copy your account and routing numbers.
  4. When you file your taxes, opt for direct deposit using those account details, and make sure to select "checking" as the account type.

How to set up tax refund direct deposit on PayPal

If you're using PayPal to receive your tax refund, all you have to do is locate your account and routing number. To add your PayPal direct deposit information to your tax refund form, here are PayPal's instructions:

  1. Go to "Settings" to locate your routing and account numbers.
  2. Add both the routing and account numbers to your tax form and select "checking" as the account type.
  3. Once processed by the IRS, your refund will automatically be added to your balance and we'll notify you by email.

If you've submitted your federal tax return and are still waiting for your refund, you can use the IRS Where's My Refund? tool to find out the status of your refund.

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