You've just finished filing your taxes, breathing a sigh of relief, when suddenly it hits you: you entered the wrong direct deposit information! Or perhaps you've simply changed bank accounts since your last filing, and you want to ensure your next refund goes to the right place. Don't panic! While the process can be a little tricky once your return is filed, it's not impossible to navigate. This comprehensive guide will walk you through everything you need to know about changing your direct deposit information with the IRS.
How Do I Change My Direct Deposit Information with the IRS? A Step-by-Step Guide
Changing your direct deposit information with the IRS largely depends on when you realize the error or need to make the change. We'll cover different scenarios to help you find the right path.
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| How Do I Change My Direct Deposit Information With The Irs |
Step 1: Assess Your Filing Status – Have You Filed Yet?
Before you do anything else, ask yourself this crucial question: Have I already submitted my tax return to the IRS? Your answer will dictate the entire process.
- Scenario A: "No, I haven't filed yet!"
- Congratulations! This is the easiest scenario to be in. If your tax return is still in draft form or you haven't officially e-filed or mailed it, you have full control over your direct deposit details.
- Scenario B: "Yes, I've already filed!"
- This is where things get a bit more complex, but still manageable. The key here is whether the IRS has accepted your return or rejected it.
Step 2: Changing Direct Deposit Before Filing (The Easy Path!)
If you haven't filed your tax return yet, correcting or updating your direct deposit information is straightforward.
Sub-heading: Using Tax Software (TurboTax, H&R Block, TaxSlayer, FreeTaxUSA, etc.)
Most tax software programs make it incredibly easy to manage your direct deposit details.
QuickTip: Focus more on the ‘how’ than the ‘what’.
- Navigate to the Refund/Payment Section: Log into your tax software account. Look for a section related to "Refund," "Payment Options," "File," or "Direct Deposit." This is usually towards the end of the filing process, just before you submit your return.
- Edit Your Bank Information: You'll typically find fields for your bank routing number and account number. Carefully delete the old or incorrect information and enter the new details.
- Pro-Tip: Double-check these numbers! A single digit error can cause significant delays or issues. You can usually find these numbers on your bank's website, mobile app, or a physical check.
- Confirm and Save: The software will likely ask you to confirm the new numbers by re-entering them. Once confirmed, save the changes.
- Proceed with Filing: Now you can confidently proceed with e-filing your tax return, knowing your refund will go to the correct account.
Sub-heading: For Paper Filers
If you're filing a paper return, the process is even simpler:
- Locate the Direct Deposit Section: Find the direct deposit section on your Form 1040 (or relevant tax form).
- Enter Correct Information: Clearly write your updated bank routing number and account number in the designated boxes.
- Review and Mail: Before mailing your return, carefully review all information, especially the direct deposit details, to prevent any errors.
Step 3: Changing Direct Deposit After Filing (The Tricky Path!)
This is where understanding the IRS process is critical. The ability to change direct deposit information once you've filed depends on the status of your return.
Sub-heading: If Your Return Was Rejected by the IRS
This is your second-best scenario after not having filed at all! If the IRS rejects your e-filed return (often due to a data mismatch, incorrect AGI, or other errors), you get a chance to fix it.
- Receive Rejection Notification: Your tax software or tax preparer will notify you that your return has been rejected.
- Access Your Return for Correction: Log back into your tax software or contact your tax preparer. You'll be able to access your return to make corrections.
- Update Direct Deposit Information: Go to the section where you entered your direct deposit details (as described in Step 2, Scenario A). Correct the bank routing and account numbers.
- Resubmit Your Return: Once you've made the necessary corrections, resubmit your e-filed return. The IRS will then process it with the updated bank information.
Sub-heading: If Your Return Was Accepted by the IRS
This is the most challenging scenario. Once the IRS has accepted your e-filed tax return, you generally cannot directly change your direct deposit information with them. The system is set up to process refunds quickly, and attempts to change bank details mid-process could lead to fraud.
QuickTip: Stop scrolling fast, start reading slow.
So, what are your options if your return has been accepted and you realize the direct deposit information is wrong or needs to be changed?
- Call the IRS Immediately (If Refund Not Yet Posted):
- If you've just realized the mistake and your refund hasn't been posted to an account yet, call the IRS directly at 1-800-829-1040.
- Explain your situation and request that they stop the direct deposit. This is not guaranteed to work, especially if the process is far along, but it's your best first shot.
- If they are able to stop the direct deposit, they will typically then issue a paper check to the mailing address on your tax return.
- What Happens if the Direct Deposit Goes to an Invalid Account?
- If you entered an account number or routing number that doesn't exist, or is for an account that's closed, the bank will reject the direct deposit.
- When the bank rejects the deposit, they will send the funds back to the IRS.
- Once the IRS receives the returned funds, they will then issue a paper check and mail it to the mailing address you provided on your tax return. Be aware: This process can add significant delays to receiving your refund (weeks, sometimes months).
- What Happens if the Direct Deposit Goes to Someone Else's Account?
- This is the most problematic situation. If you entered incorrect information that does correspond to an existing, valid account (even if it's not yours), the IRS will deposit the refund into that account.
- In this case, the IRS cannot compel the bank to return the funds. You will need to work directly with the financial institution to try and recover your money. This often becomes a civil matter between you and the financial institution/account holder.
- If you have contacted the financial institution and two weeks have passed with no results, you can file Form 3911, Taxpayer Statement Regarding Refund, to initiate a trace with the IRS. This allows the IRS to contact the bank on your behalf, but again, they cannot force the bank to return the funds if they were deposited into a valid account.
- Amending Your Return (Form 1040-X):
- Important Note: Filing an amended return (Form 1040-X) is not for changing direct deposit information. An amended return is used to correct errors related to your income, deductions, credits, or filing status. It will not alter where your refund is sent. If you file an amended return that results in an additional refund, that new refund will be issued to the direct deposit information (or by paper check) based on your original return's method, or if you provide new information on the amended form, it will be processed for the new refund only.
Step 4: Verifying and Tracking Your Refund
Once you've taken steps to correct or manage your direct deposit, you'll want to track your refund.
Sub-heading: Using the "Where's My Refund?" Tool
The IRS offers an excellent online tool to check the status of your refund:
- Visit the IRS Website: Go to IRS.gov and search for "Where's My Refund?" or directly access it.
- Provide Information: You'll need to enter your Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), your filing status (Single, Married Filing Jointly, etc.), and your exact refund amount from your tax return.
- Check Status: The tool will provide updates on your refund's status, including whether it's been received, approved, or sent. It will also indicate if it's being direct deposited or mailed as a check.
- IRS2Go App: You can also use the IRS2Go mobile app, which offers similar functionality.
Sub-heading: Understanding Refund Delays
If you had an issue with direct deposit, expect delays.
Reminder: Save this article to read offline later.
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- Paper checks take longer: If your direct deposit was rejected and a paper check is being issued, it will take several weeks to arrive by mail.
- Tracing a refund: If you need to file Form 3911, the tracing process can take up to 120 days for resolution as banks are allowed up to 90 days to respond to the IRS. Patience is key here.
Step 5: Best Practices for Future Filings
To avoid direct deposit headaches in the future, follow these best practices:
- Verify Information Meticulously: Always double-check your bank routing number and account number before submitting your tax return. Compare them against a voided check, your online banking portal, or a bank statement.
- Confirm Account Type: Ensure you're providing information for a checking or savings account that is able to receive direct deposits. Some mobile apps or prepaid cards might have different routing/account numbers for direct deposits – confirm with your provider.
- Account Ownership: The IRS generally requires refunds to be deposited into accounts that are in your name, your spouse's name, or both (for joint returns). Depositing into an account solely owned by someone else is not advisable and can lead to issues.
- Split Your Refund (Optional): The IRS allows you to split your refund into up to three different financial accounts. You can do this electronically through your tax software or by using Form 8888, Allocation of Refund (for paper filers). This can be useful for saving, investing, or depositing into different types of accounts (e.g., checking, savings, health savings accounts, certain retirement accounts).
- Keep Records: Save a copy of your filed tax return, including the direct deposit information you provided, for your records.
10 Related FAQ Questions
How to check my direct deposit information after filing?
You cannot directly check or view the bank account information you provided to the IRS after your return has been accepted through an online tool. However, you can review the copy of your tax return that you saved or was provided by your tax software/preparer, as it will show the direct deposit details you entered.
How to stop a direct deposit refund from the IRS?
If your return has been accepted but the refund hasn't been posted yet, you can try calling the IRS directly at 1-800-829-1040 to request a stop to the direct deposit. This is not always possible, especially if the process is far along.
How to update bank details for an IRS payment (e.g., estimated taxes)?
For payments made to the IRS (like estimated taxes), if you scheduled a payment via IRS Direct Pay and need to change or cancel it, you can do so online using the "Look Up a Payment" option on the Direct Pay page, provided you have your confirmation number and it's at least two business days before the scheduled payment date.
QuickTip: Reread for hidden meaning.
How to get my refund if direct deposit failed?
If your direct deposit fails (e.g., due to an invalid or closed account), the financial institution will typically return the funds to the IRS. Once the IRS receives the returned funds, they will issue a paper check and mail it to the address on file from your tax return.
How to recover funds if my IRS refund went to the wrong account?
If your refund was deposited into a valid but incorrect account (e.g., someone else's account), you must work directly with the financial institution that received the funds. The IRS cannot compel the bank to return the money. If unsuccessful after two weeks, you can file Form 3911, Taxpayer Statement Regarding Refund, to initiate an IRS trace.
How to avoid direct deposit errors for future tax returns?
Always double-check your bank routing and account numbers against a reliable source (like your bank's website or a voided check) before submitting your tax return. Ensure the account is active and in your name or a joint name.
How to split my IRS refund into multiple accounts?
You can split your IRS refund into up to three different accounts by selecting the option in your tax software or by using IRS Form 8888, Allocation of Refund, if you file a paper return.
How to know if the IRS has accepted my e-filed return?
Most tax software will provide you with an email or in-app notification confirming whether your e-filed return has been accepted or rejected by the IRS. You can also check the "Where's My Refund?" tool on IRS.gov for the most up-to-date status.
How to change direct deposit for Social Security benefits, not tax refunds?
Changing direct deposit for Social Security benefits is a separate process handled by the Social Security Administration (SSA). You can usually do this by logging into your My Social Security account online, calling the SSA at 1-800-772-1213, or contacting your bank to see if they can send your information to the SSA via the Automated Enrollment (ENR) process.
How to get a paper check if I previously opted for direct deposit?
If you can successfully stop a direct deposit that hasn't posted, the IRS will typically mail you a paper check. If your direct deposit fails, the IRS will also mail you a paper check to the address on your tax return. For future refunds, you simply don't select the direct deposit option when filing your tax return.
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