You've just realized your bank account information on TurboTax needs to be updated. Perhaps you've changed banks, closed an old account, or simply made a typo. Don't panic! While the process can be straightforward if done at the right time, there are crucial considerations depending on when you need to make this change. Let's dive into a comprehensive guide to navigate this process.
The Critical Timing: Before vs. After Filing
Before we get into the step-by-step, it's absolutely vital to understand that the ability to change your bank information in TurboTax is highly dependent on the status of your tax return.
Before you e-file your return: This is the ideal scenario. You have full control and can easily update your direct deposit or direct debit information.
After you e-file, but while your return is pending: Unfortunately, even at this stage, you cannot change your banking information. The IRS does not allow it.
After your return has been accepted by the IRS: It's too late to change your banking information through TurboTax or directly with the IRS.
Knowing this upfront will save you a lot of frustration!
Step 1: Assess Your Filing Status – Are You Pre-File or Post-File?
Hold on a minute! Before you click a single button, let's figure out where you stand. Have you already hit that "File" button on TurboTax?
If you haven't e-filed yet: Fantastic! You're in the best position. Proceed to Step 2.
If you have e-filed, and your return is pending or accepted: Deep breaths. This means you likely cannot change your bank information directly in TurboTax. Skip to Step 3 for what to do next.
Step 2: Changing Bank Information Before You E-File (The Best Scenario)
If your return is still in progress and you haven't officially e-filed it yet, congratulations! This is relatively simple.
2.1 Accessing the "File" Section
Sign In to TurboTax: Open your TurboTax account online or launch the desktop application.
Navigate to Your Return: Look for an option like "Take me to my return" or "Pick up where I left off" to continue working on your taxes.
Find the "File" Tab: On the left-hand side or at the top of your screen (depending on your TurboTax version), you should see a "File" tab or section. Click on it.
2.2 Locating Refund/Payment Information
"Your refund/payment info": Within the "File" section, look for a step or option labeled "Step 2 Your refund/payment info" or similar. It might say "Start" or "Revisit" next to it. Click this option.
2.3 Selecting Your Refund/Payment Method
"Get your refund/payment screen": You'll be presented with options on how you want to receive your refund (or how you want to pay if you owe taxes).
"See all options" or "Other refund options": If your previous bank information is pre-filled, you might not see a direct "change" button immediately. Look for a link or button that says "See all options" or "Other refund options." This is key!
Choose "Direct Deposit" or "Direct Debit": On the subsequent screen, you'll likely have the choice between direct deposit, paper check, or other payment methods. Select the direct deposit option if you're expecting a refund, or direct debit if you're making a payment.
2.4 Entering Your New Bank Details
Edit or Enter New Information: This is where you'll finally be able to input your updated bank details. Carefully enter the new routing number and account number. Double-check every digit!
Account Type: Make sure to select the correct account type (checking or savings).
Confirm and Continue: Follow the on-screen prompts to confirm your new banking information and continue through the filing process.
Important Considerations:
Paying TurboTax Fees from Refund: If you elected to pay your TurboTax fees out of your federal refund, this might add an extra step or a slight variation in the screens you see. You'll still be able to change your direct deposit information, but you might need to confirm your payment method for TurboTax first.
Review Thoroughly: Before you finalize your e-file, do a final review of your entire return, paying special attention to the bank information you've just entered. A small error can cause significant delays.
Step 3: What to Do If You've Already Filed (Pending or Accepted)
This is where things get a bit more challenging, as TurboTax cannot change your banking information once your return is pending or accepted by the IRS. The IRS also does not allow you to change direct deposit information after a return has been filed.
3.1 Scenario A: Refund is Expected (Incorrect Direct Deposit Info)
If you've entered incorrect bank information for your refund and your return has been accepted, here's what typically happens:
Bank Rejection: The bank account you provided is either invalid, closed, or the name on the account doesn't match the name on the tax return. The bank will reject the direct deposit.
Refund Sent Back to IRS: Once the bank rejects the deposit, the funds are sent back to the IRS.
Paper Check Issued: The IRS will then issue a paper check and mail it to the mailing address you provided on your tax return.
Expect Delays: This process can take several weeks, so be prepared for a delay in receiving your refund.
What You Can Do:
Monitor Your Refund Status: Regularly check the IRS "Where's My Refund?" tool (irs.gov/refunds) using your Social Security number, filing status, and refund amount. This will give you the most up-to-date information on the status of your refund.
Verify Your Mailing Address: Ensure the mailing address on your filed tax return is absolutely correct. If it's not, you might need to file a Form 8822, Change of Address, with the IRS, which can further delay things.
Contact Your Bank: If you're unsure if the account is truly invalid or closed, contact your bank to confirm. They might be able to provide information on why the deposit was rejected.
Do NOT file an amended return (Form 1040-X) to change bank information. This will not help and can complicate things further.
3.2 Scenario B: Payment is Owed (Incorrect Direct Debit Info)
If you've set up a direct debit payment for taxes owed and the bank information is incorrect, this can lead to:
Payment Rejection: Your bank will reject the debit.
Penalties and Interest: The IRS may consider this a missed payment, potentially leading to penalties and interest for late payment.
What You Can Do:
Make an Immediate Payment: The most critical step is to immediately make your tax payment through an alternative method.
IRS Direct Pay: This is the quickest way to make a payment directly from your bank account. Visit irs.gov/payments/direct-pay.
Debit Card, Credit Card, or Digital Wallet: You can also pay online through an approved third-party payment processor (fees may apply). Visit irs.gov/payments.
Mail a Check or Money Order: As a last resort, you can mail a check or money order, but ensure it's postmarked by the tax deadline.
Contact the IRS: It's advisable to contact the IRS directly as soon as possible to explain the situation and prevent further penalties. Be prepared with your tax return information and proof of your attempt to pay.
Monitor IRS Notices: Keep an eye out for any notices from the IRS regarding the rejected payment. Respond promptly to avoid further issues.
Step 4: Beyond Basic Changes – Other Scenarios
4.1 Changing Bank Info for Future Years
Once your current year's return is filed and processed, remember to update your bank information in TurboTax for the next tax season. TurboTax often pre-fills information from previous years, so proactively updating it will prevent future headaches. You'll do this following the steps in Step 2 during your next tax preparation.
4.2 TurboTax Fees and Bank Information
If you opted to pay your TurboTax fees from your federal refund, and then later need to change your bank information, this can add a layer of complexity. The refund goes to a third-party processor (like Santa Barbara Tax Products Group - TPG) first, who then deducts the fees and sends the remainder to your account. If the account is incorrect, TPG will be the first to know.
Contact TPG: If you used this service and your direct deposit for the refund (after fees) is an issue, you might need to contact Santa Barbara Tax Products Group (sbtpg.com) for assistance. They can provide insight into the status of your refund and whether it was rejected by the bank.
Frequently Asked Questions (FAQs)
Here are 10 related FAQ questions to help clarify common concerns:
How to change bank info on TurboTax before I file?
To change bank info before filing, navigate to the "File" section in TurboTax, then find "Step 2 Your refund/payment info." From there, select "See all options" or "Other refund options" to enter your new direct deposit or direct debit details.
How to change direct deposit info in TurboTax if my return is pending?
You cannot change your direct deposit information in TurboTax or with the IRS once your return is in a "pending" status. If the direct deposit fails, the IRS will typically mail a paper check.
How to change bank account for my refund after my TurboTax return is accepted?
Once your TurboTax return has been "accepted" by the IRS, you cannot change the bank account for your refund. The bank will reject the deposit if the information is incorrect, and the IRS will then mail a paper check to the address on your return.
How to get my refund if I entered the wrong bank account in TurboTax?
If you entered the wrong bank account and your refund direct deposit is rejected by the bank, the IRS will automatically mail a paper check to the address listed on your tax return. This process can cause delays.
How to change the bank account for my tax payment if I owe money and used direct debit?
If you owe taxes and provided incorrect bank information for a direct debit payment, you cannot change it after filing. You must immediately make your payment through an alternative method like IRS Direct Pay (irs.gov/payments) or by credit/debit card to avoid penalties.
How to check the status of my refund after changing bank info (or if it's incorrect)?
You can check the status of your federal refund using the IRS "Where's My Refund?" tool at irs.gov/refunds. For state refunds, check your state's revenue department website.
How to ensure my bank information is correct for next year's TurboTax filing?
To ensure correctness for next year, always review your bank information carefully in the "File" section of TurboTax before e-filing. Do not assume pre-filled information from previous years is still accurate.
How to avoid extra fees when changing bank information in TurboTax?
There are no extra fees directly from TurboTax for changing direct deposit information before you file. However, if you choose to have TurboTax fees deducted from your refund, and issues arise, there might be service fees from the third-party processor. The best way to avoid this is to pay TurboTax fees upfront with a credit/debit card.
How to contact the IRS about a rejected direct deposit?
If your direct deposit is rejected, wait for the IRS to mail a paper check. If you have concerns or have waited an unreasonable amount of time, you can try contacting the IRS directly via phone, but be prepared for potentially long wait times.
How to update my personal information (like address) in TurboTax?
You can update your personal information, including your address, within your TurboTax account profile. For tax purposes, ensure the address on your filed return is current. If you need to change your address after filing, you may need to file a Form 8822 with the IRS.
