Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Refund and Amount of Tax Owed

Refund or Tax Due

Refunds and U.S. Savings Bonds

Taxpayers can request that their refund be deposited directly into a TreasuryDirect online account to purchase U.S. Treasury marketable securities and savings bonds. Details can be found at

Taxpayers who do not have a TreasuryDirect online account also have the option to purchase savings bonds with their federal income tax refunds. Additional details are covered later in the lesson.


RALs, RACs, and Other Financial Products: You may be asked about Refund Anticipation Loans (RALs). A RAL is money borrowed by a taxpayer from a lender based on the taxpayer's anticipated income tax refund. A variation of a RAL is a Refund Anticipation Check (RAC). Financial Institutions also offer a variety of other financial products to taxpayers based on their refunds. Providers that assist taxpayers in applying for a RAL or other financial products have additional responsibilities and may be sanctioned by the IRS if they fail to adhere to the requirements.

Form 1040 showing a zero in the line for applying overpaid tax to next year's estimated tax.