State Issuing Some Tax Refunds on Debit Cards

Connecticut's Department of Revenue Services will issue state income tax refunds on debit cards beginning this year.

The debit cards will replace checks sent to most taxpayers who do not choose direct deposit for their refunds.

"The new tax refund debit card is practically like cash in your hand," said Kevin Sullivan, DRS Commissioner.

People will be able to use it at anytime just like a normal debit card for shopping, paying bills, or they can even use it to get cash from an ATM, according to Sullivan. "We believe taxpayers, especially those without a bank account, will appreciate the flexibility and security the new refund debit card offers," he said.

In 2011, nearly 1 million state income tax refunds issued in Connecticut were done through direct deposit, but about 45 percent of all refunds were done by paper check, according to the DRS. Taxpayers receiving refund amounts less than $10,000, who don't use direct deposit, will get the debit cards.

"Issuing tax refunds as debit cards provides a security and convenience not available with paper checks," Sullivan said. "Couple that with the elimination of check cashing fees and the refund debit cards are a benefit for taxpayers and the state."

The first debit cards should arrive in mailboxes across Connecticut this week.