Changing your direct deposit information on TurboTax is a common need, but it's crucial to understand the timing involved. The ability to change your banking details depends entirely on whether or not you've already filed your tax return. Let's dive into a comprehensive guide to help you navigate this process!
How to Change Your Direct Deposit on TurboTax: A Step-by-Step Guide
Hey there! Are you looking to make sure your tax refund lands in the right account this year? Maybe you've opened a new bank account, or perhaps you just realized you entered the wrong details. Whatever the reason, you're in the right place! We're going to walk you through the process of updating your direct deposit information on TurboTax, step by step. Let's get started!
Understanding the Critical Window: Before vs. After Filing
Before we jump into the "how-to," it's absolutely vital to understand this key point:
If you HAVE NOT filed your tax return yet: Great news! You have the flexibility to change your direct deposit information easily within TurboTax. This is the ideal scenario.
If you HAVE already filed your tax return (and it's been accepted by the IRS): This is where it gets a bit trickier, and generally, you cannot change your direct deposit information. The refund process is already in motion.
We'll address both scenarios, but it's important to set your expectations upfront.
Scenario 1: Changing Direct Deposit BEFORE You File Your Tax Return
This is the best-case scenario! You still have full control over your refund destination.
Step 1: Access Your TurboTax Account and Your Return
Log In to TurboTax: First things first, head over to the TurboTax website (or open the desktop application) and log in to your account. Make sure you're using the correct credentials for the return you wish to modify.
Open or Continue Your Return: Once logged in, you'll need to navigate to your current tax return. Look for an option like "Continue your return" or "Take me to my return."
Step 2: Navigate to the "File" Section
Locate the "File" Tab/Section: On the left-hand navigation menu (or at the top, depending on your TurboTax version), you'll typically find a section or tab labeled "File." Click on this. This section is where you prepare to send your return to the IRS.
Step 3: Find Your Refund/Payment Information
Look for Refund/Payment Info: Within the "File" section, you'll see several steps or options. Look for a step that specifically mentions "Your refund/payment info" or "How you want to receive your refund." It might be labeled something like "Step 2: Your refund/payment info."
Click "Start," "Revisit," or "Continue": Select the appropriate button next to this option to proceed.
Step 4: Select Direct Deposit and Update Details
"Get your refund" Screen: You'll likely land on a screen titled "Get your refund" or similar. Here, you'll usually see various options for receiving your refund.
Choose "See all options" (if applicable): Sometimes, your previous direct deposit information might be pre-filled. To change it, you might need to click on "See all options" or "Choose other refund options" if it's not immediately apparent.
Select "Direct Deposit": From the available options, explicitly choose "Direct deposit."
Enter Your New Banking Information: This is the critical part! You'll be prompted to enter the following details for your new bank account:
Bank Routing Number: This is a 9-digit code that identifies your financial institution. You can usually find it on your checks or through your online banking portal.
Bank Account Number: This is your specific account number at that bank.
Account Type: Indicate whether it's a "Checking" or "Savings" account.
Double-Check Everything! Before moving on, please, please, please triple-check all the numbers you've entered. A single incorrect digit can lead to significant delays and complications. It's like proofreading your essay before submitting it for a grade!
Step 5: Continue and Complete Filing
Save Your Changes: Once you've entered and verified your new direct deposit information, click "Continue" or "Next" to save these changes.
Proceed with Filing: You can now continue with the rest of the filing process, review your return, and ultimately e-file it with confidence that your refund will go to the correct account.
Scenario 2: What Happens If You Need to Change Direct Deposit AFTER Filing?
This is where the news is generally not what most people want to hear.
The Unfortunate Reality: It's (Almost) Too Late!
Once you have successfully e-filed your tax return and it has been accepted by the IRS, you generally cannot change your direct deposit information through TurboTax or directly with the IRS. The wheels are already in motion.
What Happens If You Entered Incorrect Information?
Don't panic just yet. The IRS has a process for this, though it will likely cause a delay in your refund.
If the Bank Account is Invalid or Closed: If you entered a routing number or account number that doesn't exist, or if the account is closed, the bank will reject the direct deposit. They cannot deposit funds into a non-existent or closed account.
Funds Returned to the IRS: When the direct deposit is rejected by the bank, the funds are sent back to the IRS.
Paper Check Issued: The IRS will then typically issue a paper check for your refund and mail it to the address you provided on your tax return.
Important: Ensure the mailing address on your tax return is correct! If that's also outdated, you'll face further delays.
Expect Delays: This process of the direct deposit being rejected and a paper check being issued can take several weeks, or even longer, beyond the typical 21-day direct deposit timeframe.
If the Bank Account is Valid but Belongs to Someone Else (and the names don't match): In most cases, banks have security measures in place. If the name on the tax return (your name) does not match the name on the bank account, the bank will usually reject the deposit and return the funds to the IRS. Again, a paper check will likely be mailed to you.
If the Bank Account is Valid and Belongs to Someone Else (and the names do match, or it's a joint account): This is a more complicated situation. If the funds are successfully deposited into an account that is not yours, recovering them can be challenging and may require direct communication with the bank and potentially legal action if the account holder is uncooperative. TurboTax and the IRS generally cannot intervene in such cases once the funds have been successfully deposited.
What to Do If Your Return Has Been Accepted with Incorrect Information:
Do NOT File an Amended Return (Yet): An amended return (Form 1040-X) is not the way to correct direct deposit information. You only amend a return to correct errors in income, deductions, credits, or filing status.
Monitor Your Refund Status: Keep a close eye on the IRS "Where's My Refund?" tool (irs.gov/refunds). This is your best resource for tracking the status of your refund. It will eventually show if your direct deposit was attempted and rejected.
Ensure Your Address is Correct: As mentioned, if your direct deposit fails, the IRS will mail a paper check to the address on your return. Double-check that this address is accurate. If it's not, you'll need to contact the IRS to update your address.
Be Patient: The process of a rejected direct deposit and subsequent paper check issuance can take time. Avoid calling the IRS unless the "Where's My Refund?" tool indicates a significant delay or suggests contacting them.
Tips for a Smooth Direct Deposit Experience
Verify Before You Click "File": Always, always take an extra minute to verify your bank routing and account numbers before you submit your return. It's the simplest way to avoid headaches.
Use Your Own Account: It's highly recommended to use a bank account in your own name (or a joint account where your name is listed) to receive your refund.
Keep Records: Save a copy of your filed return, which includes the direct deposit information you provided.
Frequently Asked Questions (FAQs)
Here are 10 common questions about changing direct deposit information on TurboTax, with quick answers:
How to change my direct deposit before filing my taxes on TurboTax?
You can change your direct deposit information by going to the "File" section of your TurboTax return, navigating to the "Your refund/payment info" step, and entering the new routing and account numbers before you e-file.
How to change my direct deposit after my TurboTax return has been accepted by the IRS?
Unfortunately, you generally cannot change your direct deposit information once your return has been accepted by the IRS. The process is already underway.
How to find my bank's routing number for direct deposit on TurboTax?
Your bank's routing number is typically a 9-digit number found on the bottom left of your checks, or you can usually find it by logging into your online banking portal or contacting your bank directly.
How to know if my direct deposit information was entered correctly on TurboTax?
During the filing process, TurboTax will show you the bank details you've entered. Always review these carefully before submitting your return. You can also review your filed return after submission to confirm the details.
How to check the status of my tax refund after changing direct deposit info on TurboTax?
After filing, you can check your federal refund status using the IRS "Where's My Refund?" tool at irs.gov/refunds. For state refunds, check your state's Department of Revenue website.
How to get my refund if my direct deposit was rejected due to incorrect info?
If your direct deposit is rejected by your bank, the IRS will typically mail a paper check to the address listed on your tax return. This process will cause a delay.
How to update my mailing address if my direct deposit is rejected and a check is mailed?
If your mailing address on file with the IRS is incorrect, you'll need to contact the IRS directly to update it. You can usually do this by calling them or submitting a change of address form.
How to avoid issues when entering direct deposit information on TurboTax?
Always double-check your routing and account numbers, verify they belong to you, and ensure the account is active and correctly identified as checking or savings before you finalize and file your return.
How to contact TurboTax customer service about direct deposit issues?
You can find TurboTax customer service contact information on their website, typically in the "Help" or "Support" section. However, remember they cannot change direct deposit details once the IRS has accepted your return.
How to prevent my refund from going to an old or closed account with TurboTax?
Always update your banking information within TurboTax before you e-file your tax return if your banking details have changed since your last filing. If you plan to close an account, do so after you receive your refund.
