Are you ready to ensure your tax refund lands right where you want it? Updating your direct deposit information on TurboTax is a crucial step to getting your money quickly and securely. Let's dive in and make sure your financial details are accurate!
Understanding Direct Deposit and TurboTax
Direct deposit is by far the fastest and safest way to receive your tax refund. Instead of waiting for a paper check in the mail, your refund is electronically transferred directly into your bank account. TurboTax, a popular tax preparation software, facilitates this process by securely transmitting your chosen bank account details to the IRS.
However, life happens, and sometimes bank accounts change. You might have opened a new account, closed an old one, or simply made a mistake during initial entry. Knowing how to update this information is key to avoiding delays or complications with your refund.
Important Note: The ability to change your direct deposit information depends heavily on the status of your tax return.
Step 1: Determine Your Tax Return's Status
This is the most critical first step because it dictates whether you can even change your direct deposit information. Have you already filed your taxes? Has the IRS accepted your return? The answers to these questions will determine your options.
Sub-heading: Scenario A: You Haven't Filed Yet (or Your Return Was Rejected)
This is the ideal scenario for making changes! If your tax return is still in progress, or if you've already filed but it was rejected by the IRS (meaning it hasn't been processed yet), you have the opportunity to update your direct deposit details without much hassle.
Sub-heading: Scenario B: Your Return Has Been Filed and Accepted by the IRS
Unfortunately, if your tax return has already been accepted by the IRS, you generally cannot change your direct deposit information through TurboTax or directly with the IRS. The IRS processes refunds quickly, and once your return is accepted, the direct deposit instructions are usually locked in.
What happens then? If the bank account information you provided is incorrect or the account is closed, the bank will reject the deposit and send the refund back to the IRS. The IRS will then typically issue a paper check and mail it to the address you provided on your tax return. This can cause a significant delay in receiving your refund, so it's always best to be accurate from the start.
Step 2: Updating Direct Deposit Information Before Filing (or After Rejection)
If you fall into Scenario A, congratulations! You can easily update your direct deposit details. Here's a step-by-step guide:
Sub-heading: For TurboTax Online Users
Sign In to TurboTax: Go to the TurboTax website and sign in to your account.
Access Your Return: Once logged in, navigate to your tax return. You might see a "Take me to my return" or "Pick up where I left off" option.
Go to the "File" Section: On the left-hand side navigation bar (or at the top, depending on your TurboTax version), look for the "File" tab or section. Click on it.
Locate Refund/Payment Info: Within the "File" section, you'll find a step related to "Your refund/payment info" or "How you want to receive your refund." Click on "Start," "Revisit," or "Continue" next to this option.
Choose Direct Deposit: On the screen that asks how you want to receive your federal refund (or pay your taxes, if applicable), select the option for "Direct deposit to bank account" or "In my bank."
Pro Tip: If your old bank information is pre-filled, you might need to select an option like "Other refund options" or similar to gain access to edit the details. Don't be afraid to click around a bit if you don't see an obvious "edit" button immediately. Often, selecting an alternative option temporarily allows you to then re-select direct deposit and input new details.
Enter Your New Bank Information: Carefully enter the new routing number and account number for your bank account.
Double-check, then triple-check! Accuracy is paramount here. One wrong digit can send your refund to the wrong place or cause it to bounce back to the IRS.
Confirm Account Type: Make sure you select the correct account type (checking or savings).
Review and Continue: Review the entered information to ensure it's absolutely correct. Once satisfied, click "Continue" or the equivalent button to proceed with filing your return.
Sub-heading: For TurboTax Desktop (CD/Download) Users
Open TurboTax Desktop: Launch the TurboTax software on your computer.
Open Your Tax File: Open the tax file you are currently working on.
Navigate to "File": Similar to the online version, locate and click on the "File" tab in the menu bar.
Proceed Through Interview Questions: Continue through the interview questions until you reach the screen titled "How do you want your [Your Refund Amount] federal refund?"
Select Direct Deposit: Choose "Direct Deposit to bank account."
Enter New Information: Input the updated bank routing number and account number.
Verification is key! Ensure these numbers are exact.
Save and Continue: Confirm the details and continue through the filing process.
Step 3: What to Do If Your Return Has Been Accepted (Scenario B)
As mentioned, once your return is accepted by the IRS, changing direct deposit information is generally not possible. However, there are a few things to be aware of:
Sub-heading: The Refund Bounces Back
If you entered incorrect or closed bank account information, the bank will attempt the direct deposit and, upon failure, will send the refund back to the IRS. This process can take several weeks.
Sub-heading: Receiving a Paper Check
Once the IRS receives the bounced refund, they will then issue a paper check to the mailing address you provided on your tax return. Ensure your mailing address is current and accurate in your TurboTax profile! This is your fallback if direct deposit fails.
Sub-heading: Contacting the IRS (Limited Impact)
While you cannot change your direct deposit details with the IRS once accepted, in very rare cases and only if the return hasn't yet posted to their system, you might be able to call the IRS to stop the direct deposit. If successful, this would also result in a paper check being mailed. The IRS phone number is 1-800-829-1040. Be prepared for potentially long wait times.
Crucial Advice: Do not try to call your bank to "stop" a deposit that hasn't arrived yet. The IRS initiates the deposit, not your bank, and your bank cannot typically intercept a refund already in process without specific instructions from the IRS after a failed attempt.
Step 4: Verifying Your Direct Deposit Information
After making any changes (or even if you haven't), it's always a good practice to verify your direct deposit information.
Sub-heading: Before You File
Carefully review the routing and account numbers you've entered.
Compare them against a physical check or your bank's online banking portal. Mistakes are surprisingly easy to make.
Sub-heading: After Filing
Monitor your bank account for the expected refund.
Utilize the IRS "Where's My Refund?" tool. This tool will provide the most up-to-date status of your federal refund, including when it was sent and if there were any issues.
For state refunds, check your specific state's tax department website for a similar "Where's My Refund?" tool.
Wrapping Up
Updating your direct deposit on TurboTax is a straightforward process as long as your return hasn't been accepted by the IRS. Being proactive and double-checking your banking details before you hit that "file" button can save you a lot of time and potential headaches. While it's disappointing if you miss the window, rest assured that the IRS will eventually issue a paper check if the direct deposit fails.
10 Related FAQ Questions
How to check my bank's routing number and account number?
You can find your bank's routing number and your account number on a physical check (the routing number is typically the first nine digits at the bottom, followed by your account number), through your online banking portal, or by contacting your bank directly.
How to know if my TurboTax return has been accepted by the IRS?
You can check the status of your federal tax return using the IRS "Where's My Refund?" tool on the IRS website. You'll need your Social Security Number, filing status, and exact refund amount. TurboTax also provides status updates within your account.
How to change my direct deposit information if my return was rejected?
If your return was rejected, simply log back into your TurboTax account, navigate to the "File" section, and re-enter the correct direct deposit information before re-filing your return.
How to get my refund if direct deposit fails due to incorrect information?
If direct deposit fails because of incorrect bank information, the bank will send the refund back to the IRS. The IRS will then typically issue a paper check and mail it to the address you provided on your tax return.
How to track my paper refund check from the IRS?
Once the IRS issues a paper check, you can still monitor the "Where's My Refund?" tool for updates. If a significant amount of time passes and you haven't received it, you may need to contact the IRS directly.
How to ensure my mailing address is correct for a paper check?
Before filing, double-check your personal information section in TurboTax to ensure your current mailing address is accurately entered. If your address changes after filing, you should notify the IRS by filling out Form 8822, Change of Address.
How to split my tax refund into multiple direct deposit accounts?
The IRS allows you to split your refund into up to three different accounts using Form 8888, Allocation of Refund (including Savings Bonds). TurboTax will guide you through this option if you choose to split your refund.
How to avoid direct deposit issues in the future?
Always double-check your routing and account numbers carefully before submitting your return. Consider having a second person verify the numbers for extra assurance.
How to contact TurboTax support for direct deposit issues?
You can find support options, including their community forums and contact information, on the TurboTax support website. Be aware that customer service wait times can be longer during peak tax season.
How to know when my refund will be deposited?
The IRS typically issues most refunds within 21 days for e-filed returns with direct deposit, assuming no issues. You can track your specific refund status using the IRS "Where's My Refund?" tool for the most accurate timeline.
