Are you looking to update your routing number for an upcoming tax refund, or have you already filed and need to change where a pending refund goes? The process is very different depending on your situation! Let's get this sorted out.
Changing your routing number for the IRS can seem like a daunting task, but with the right information and a step-by-step approach, you can navigate the process effectively. This comprehensive guide will walk you through everything you need to know to ensure your tax refund or payment goes to the correct bank account.
Understanding IRS Direct Deposit and Payments
Before we dive into how to change your routing number, it's crucial to understand how the IRS handles direct deposits and payments. The IRS strongly encourages direct deposit for refunds because it's the fastest, safest, and most convenient way to receive your money. Similarly, direct debit is an easy way to pay your taxes directly from your bank account.
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| How Can I Change My Routing Number For Irs |
Why is Accuracy So Important?
Even a single incorrect digit in your routing or account number can cause significant delays or even lead to your refund being sent to the wrong account. The IRS assumes no responsibility for taxpayer error when it comes to incorrect banking information. This means if you enter the wrong numbers, it's largely up to you to rectify the situation, which can be challenging after a return has been processed.
Step 1: Assess Your Current Situation - Have You Filed Your Tax Return Yet?
This is the most critical question! Your ability to change your routing number depends entirely on whether or not your tax return has been filed and, if so, its current status.
Sub-heading: Scenario A: You Haven't Filed Your Tax Return Yet
This is the easiest scenario! If you haven't yet submitted your tax return (whether electronically or by mail), you have full control over your direct deposit information.
Tip: Read mindfully — avoid distractions.
Sub-heading: Scenario B: You've Filed Your Tax Return, but It Hasn't Been Accepted or Has Been Rejected
If you've e-filed your return and it's still pending (meaning the IRS hasn't formally accepted or rejected it), or if it has been rejected by the IRS, you may still have an opportunity to make corrections.
Sub-heading: Scenario C: Your Tax Return Has Been Accepted by the IRS
This is the most challenging scenario. Once your tax return has been accepted by the IRS, it becomes extremely difficult, and often impossible, to change your direct deposit information. The system is designed for security and efficiency, and changes after acceptance are generally not permitted directly through the IRS.
Step 2: Detailed Guide Based on Your Filing Status
Now, let's break down the specific steps for each scenario.
Step 2.1: Changing Your Routing Number Before Filing Your Tax Return
If you haven't filed yet, consider yourself lucky! This is straightforward.
- Step 2.1.1: Locate the Direct Deposit Section in Your Tax Software/Form.
- If you're using tax preparation software (e.g., TurboTax, H&R Block, FreeTaxUSA), navigate to the section where you enter your banking information for direct deposit. This is usually near the end of the filing process, just before you submit your return.
- If you're filing a paper return, locate the direct deposit lines on your Form 1040 (or relevant tax form).
- Step 2.1.2: Carefully Input the New Routing and Account Numbers.
- Double-check your routing number and account number. The routing number is typically nine digits long and identifies your financial institution. The account number identifies your specific account at that institution.
- Where to find them: You can find these numbers on your checks, by logging into your online banking portal, or by contacting your bank directly. Many banks list their routing numbers on their websites.
- Some software may ask you to re-enter the numbers to confirm. Take your time with this step!
- Step 2.1.3: Review Your Entire Return Before Filing.
- Before you hit "submit" or mail your return, do a final review of all your information, especially the direct deposit details. This final check can prevent headaches later.
- Step 2.1.4: Submit Your Tax Return.
- Once you're confident all information is accurate, proceed to file your tax return.
Step 2.2: Changing Your Routing Number When Your Return is Pending or Rejected
If you've e-filed and your return is either still pending or has been rejected, you have a window of opportunity.
QuickTip: Read step by step, not all at once.
- Step 2.2.1: Wait for IRS Acceptance or Rejection Notification.
- The IRS will typically inform you within 24-48 hours if your e-filed return has been accepted or rejected.
- Step 2.2.2: If Your Return is Rejected
- Congratulations! This is your chance. Log back into your tax preparation software.
- The software will usually highlight the errors that led to the rejection. Locate the section where you entered your banking information.
- Correct the routing and/or account numbers carefully.
- Resubmit your e-filed return. Ensure you get a new confirmation that it has been successfully e-filed.
- Step 2.2.3: If Your Return is Pending
- While a return is pending, some tax software may allow you to make changes. Check with your specific tax software provider's support documentation or contact their customer service. However, once the IRS begins processing, this window usually closes quickly.
- If your software doesn't allow changes while pending, your best bet is to wait for a rejection. If it gets accepted with the wrong information, proceed to Step 2.3.
Step 2.3: What to Do If Your Tax Return Has Been Accepted by the IRS
This is where it gets tricky. Generally, once the IRS accepts your e-filed tax return, you cannot directly change your direct deposit information with them. The IRS does not have an online tool or a simple phone number to update banking details for an already accepted return.
- Step 2.3.1: Do NOT File an Amended Return (Form 1040-X) Solely to Change Banking Information.
- An amended return is used to correct errors in income, deductions, credits, or filing status, not for changing direct deposit details. Filing one for this reason will likely cause delays and won't fix the direct deposit issue. While Form 1040-X now allows direct deposit for refunds generated by the amended return, it doesn't change the direct deposit for the original return's refund.
- Step 2.3.2: Contact Your Financial Institution (The Bank Account You Originally Provided).
- If you entered an incorrect routing number or an account number for an account that is closed or no longer active, the bank will likely reject the direct deposit attempt.
- When the bank rejects the direct deposit, they will return the funds to the IRS.
- Once the funds are returned to the IRS, the IRS will then issue a paper check and mail it to the address on file from your tax return. This process can take several weeks, so patience is key.
- Step 2.3.3: Contact the IRS (Limited Options).
- You can try calling the IRS at 1-800-829-1040. However, be aware that their ability to stop a direct deposit once it's in process, especially after acceptance, is extremely limited. They usually advise you to wait for the bank to reject the deposit, leading to a paper check.
- Important Note: The IRS cannot compel a bank to return funds once they have been deposited into an account. If the funds go into a valid account that is simply not yours (due to a typo, for example), it could become a civil matter between you and the account holder. This is why double-checking is so vital!
- Step 2.3.4: Track Your Refund.
- Use the IRS's "Where's My Refund?" tool on IRS.gov to check the status of your refund. This tool will inform you if your refund has been sent, if it's been returned to the IRS, or if a check has been issued. You'll need your Social Security Number, your filing status, and the exact refund amount.
Step 2.4: For Tax Payments (Direct Debit)
If you have scheduled a direct debit payment to the IRS and need to change the routing number:
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- Step 2.4.1: If You Used IRS Direct Pay:
- The IRS Direct Pay system allows you to change or cancel a scheduled payment up to 2 days prior to the scheduled payment date. You will need your confirmation number from when you set up the payment.
- If you're within this window, you can cancel the existing payment and then set up a new one with the correct routing number.
- Step 2.4.2: If You Used EFTPS (Electronic Federal Tax Payment System):
- EFTPS also allows you to make changes or cancel payments up to a certain point before the payment date. Log in to your EFTPS account to manage your scheduled payments.
- Step 2.4.3: If You Paid Through Your Tax Software (Electronic Funds Withdrawal):
- Some tax software allows you to modify payment details before the return is filed. If the return has already been filed and the payment is scheduled, you'll need to check the specific software's policy. If the payment is already processing, you might need to contact your bank to try and stop the payment (though this is not always successful) and then make a separate payment to the IRS through another method (like Direct Pay or a check).
- Step 2.4.4: If a Payment Fails:
- If a direct debit payment fails due to incorrect banking information or insufficient funds, the IRS will send you a payment return notice, and you will need to resubmit the payment through another method. Penalties and interest may apply if the payment is late.
Step 3: Proactive Measures and Best Practices
To avoid these headaches in the future, follow these best practices:
- Always double-check your routing and account numbers before submitting your tax return or scheduling a payment.
- If possible, copy and paste the numbers from your online banking portal directly into your tax software to avoid manual entry errors.
- Keep a copy of your tax return for your records, which will include the direct deposit information you provided.
- If you change banks or close an account, make sure to update your financial information with all relevant parties, including the IRS for future filings.
- Consider using the IRS "Where's My Refund?" tool regularly once you've filed your return to stay informed about its status.
Frequently Asked Questions (FAQs)
Here are 10 related FAQ questions to help you further:
How to check my tax refund status with the IRS?
You can check your tax refund status using the IRS's "Where's My Refund?" tool available on IRS.gov. You'll need your Social Security number, filing status, and the exact refund amount.
QuickTip: The more attention, the more retention.
How to correct a wrong routing number before e-filing?
If you haven't e-filed yet, simply go back to the direct deposit section of your tax software or paper form and carefully update the routing and account numbers before submitting your return.
How to change direct deposit after my return is accepted by the IRS?
Generally, you cannot change direct deposit information with the IRS once your return has been accepted. If the bank rejects the deposit, the IRS will issue a paper check to your address on file.
How to get my refund if my bank account is closed?
If your direct deposit is sent to a closed account, the bank will reject the deposit and return the funds to the IRS. The IRS will then mail a paper check to the address you provided on your tax return.
How to stop a direct debit tax payment if I entered the wrong routing number?
If you used IRS Direct Pay or EFTPS, you can often cancel the payment up to 2 days before the scheduled payment date. Log in to the respective system and cancel, then reschedule with the correct information. If you're past the cancellation window, you may need to contact your bank.
How to avoid errors when entering banking information for the IRS?
Triple-check all digits, especially the routing number. Consider copying and pasting from your bank's website or using a physical check as a reference. Ensure the account is active and in your name (or joint name for joint returns).
Tip: Train your eye to catch repeated ideas.
How to contact the IRS about a direct deposit issue?
You can call the IRS at 1-800-829-1040. However, be prepared for limited assistance once a direct deposit is in process, as they generally cannot stop or reroute it.
How to update my address with the IRS for a mailed refund check?
If you need to update your address, you can file Form 8822, Change of Address, or Form 8822-B, Change of Address or Responsible Party - Business, with the IRS. You can also notify them in writing or by phone.
How to get a paper check if I prefer it over direct deposit?
When filing your tax return, simply do not select the direct deposit option. The IRS will then automatically issue a paper refund check to the mailing address provided on your return.
How to split my refund into multiple bank accounts?
You can use IRS Form 8888, Allocation of Refund (Including Savings Bond Purchases), to direct your refund into up to three different U.S. financial accounts. This form can be submitted with both e-filed and paper returns.
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