Good news for hundreds of thousands of Americans – the government is testing a pilot program to distribute federal income tax refunds via prepaid debit cards. Green Dot, a household name to millions of Americans who utilize prepaid debit cards on a regular basis, is the company responsible for managing the pilot program.

The limited offer will be extended to 600,000 lower income taxpayers, those most likely to be without a traditional banking relationship in the first place.

MyAccountCard Visa Prepaid Card Offers – Federal Income Tax Refund Debit Cards

Beginning next week, 600,000 low- to middle-income taxpayers will receive a letter from the U.S. Treasury Department instructing them how to use the card. In order to participate in the program, an individual must activate the MyAccountCard so a 2010 federal tax refund can be direct deposited onto the card.