Wed August 22, 2012
Kearney proposes debit cards for tax refunds
A state senator from Cincinnati is introducing a bill that would let taxpayers get their income tax refund on a prepaid debit card.
Sen. Eric Kearney said the state needs to adjust to the marketplace.
“This prepaid debit card program will benefit those citizens that do not have a bank account for direct deposit, or for those who wish to avoid the hassle with paper checks and check cashing fees,” Kearney said in a statement. “They will also be able to use their prepaid debit cards in stores, online, over the phone, or anywhere that accepts debit cards.”
Kearney said 6 other states allow residents to receive their income tax returns on debit cards. Those include South Carolina, Louisiana, New York, Georgia, Oklahoma, and Connecticut.
He said the state is working out an arrangement with the major debit card providers so that fee would not be incurred to the state or the taxpayer.
Kearney successfully sponsored a bill in 2010 that allowed an income tax refund to be deposited directly tin a checking, savings or individual retirement account.