The District of Columbia Office of Tax and Revenue (OTR) announced today a new option taxpayers can choose to receive their local income tax refunds. Beginning next year, a prepaid card will be available as an alternative to paper checks and direct deposit.

The prepaid cards will be available at no cost to taxpayers, and no bank account or credit check is required to enroll. Taxpayers who choose to receive the cards can use them to conveniently and securely pay bills and make purchases online, by telephone, and at retail locations. In addition, taxpayers - including those without bank accounts - can make in-person cash withdrawals at most banks.

"The new prepaid card may be especially beneficial to taxpayers who don't have bank accounts," said Stephen M. Cordi, deputy chief financial officer for the Office of Tax and Revenue. "Expanding our tax refund options to include this new prepaid card empowers District of Columbia taxpayers with a more convenient, and secure alternative to paper checks."

The DC OTR issues more than 50 percent of income tax refunds via paper checks each year. The switch to the tax refund cards will save the District money by reducing check printing and mailing costs.

The new prepaid card will be ready to use after being activated by the cardholder, providing taxpayers with immediate access to their District tax refund. In addition to ATMs, cardholders can get cash back at the point-of-sale (with PIN transactions) at most retail locations. Cardholders are also protected against unauthorized or fraudulent charges (terms and conditions apply).

Those who do not select an option on their tax return will receive a tax refund card.  However, refunds under $25 or greater than $2,500 do not qualify for the tax refund card and will be issued by check. 

For additional information on the prepaid card option, taxpayers should visit: otr.dc.gov/refundprepaidcards.