How to Cash a Third Party Tax Return Check
Tax season is that time of year that may bring a smile to the faces of those who expect to receive tax refund checks. However, bank rules always come into play when a person wants to cash a check, especially if the payee cannot cash his own check and needs a third party to cash it on his behalf.
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Instructions
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Have the payee on the check sign the check over to the third party. This is done by having the payee sign (exactly as the name is stated on the check) on the back end of the check in the endorsement area. Under the signature, the payee should write "Pay to the order of ___." The third party should endorse under that line. This is the most important step. If the payee does not sign the check over to the third party, it is against the law for the third party to cash the check. After endorsement, the third party is responsible for the check and its worth.
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Bring the original payee with valid photo identification to the third party's bank. Most bank policies will state that in order to cash a third party check, both individuals must be present for cashing purposes with photo identification. This reduces the potential for fraud.
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Make sure to have at least an amount of money in your account that is equal to the amount written on the check. If the bank account does not have enough cash to cover the check, some bank tellers will not cash the full amount. Instead, they will deposit the rest of the check.
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Keep a level head during this process. At times, third party check cashing (especially with government checks) is an irritating process because of the many bank rules. Be calm and keep a smile on your face.
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Tips & Warnings
A solution to avoid government check cashing entirely is to have the check directly deposited into the bank account of the party to whom it is issued. A check for the funds may be cut after deposit.
If the bank will not allow you to cash the check, do not argue with the teller or manager. They are simply following their bank's rules.
