It's that time of year again – tax season! And while filing your taxes can feel like a daunting task, getting your refund via direct deposit is usually a smooth and quick process. But what happens if you need to change your direct deposit information on TurboTax? Maybe you've switched banks, closed an old account, or simply realized you entered the wrong numbers. Don't panic!
This comprehensive guide will walk you through the steps of editing your direct deposit information on TurboTax. We'll cover everything from when you can make changes to what to do if it's too late, ensuring you receive your refund without a hitch.
Ready to take control of your tax refund? Let's get started!
Step 1: Assess Your Filing Status – Have You Filed Yet?
This is the absolute first question you need to ask yourself, as it dictates whether you can even change your direct deposit information within TurboTax.
Sub-heading: If you HAVE NOT filed your tax return yet:
Congratulations! You're in the best possible position. If your return is still in "pending" status or you haven't officially e-filed or mailed it, you can easily update your bank details. This is the ideal scenario for making changes.
Sub-heading: If you HAVE already filed and your return has been accepted (or mailed):
Unfortunately, once your tax return has been accepted by the IRS (or your state tax agency) or physically mailed, it is generally too late to change your direct deposit information through TurboTax. The IRS processes refunds quickly, and any changes at this stage would likely be ineffective and could even cause further delays or issues.
What to do if your return has been accepted? Don't worry, all is not lost!
Incorrect Account/Routing Number: If you entered an incorrect routing or account number, and the bank cannot process the deposit (e.g., the account doesn't exist, or the name on the account doesn't match yours), the IRS will typically reject the direct deposit and mail you a paper check instead. This might take a bit longer, but you will still receive your refund.
Correct Account, Wrong Bank/Person: If the direct deposit goes into a valid account that's just not yours (e.g., you accidentally used a friend's or family member's old account), you will need to contact the bank directly to try and resolve the issue. The IRS will not retrieve the funds.
Call the IRS (in specific situations): In very limited circumstances, before your return has been processed and the refund issued, you might be able to call the IRS (800-829-1040) and request to stop the direct deposit. However, this is rare and not guaranteed.
Step 2: Navigating TurboTax to Edit Direct Deposit (If Not Filed)
If you are still in the glorious "pre-filing" phase, follow these steps to update your direct deposit information:
Sub-heading: Log In to Your TurboTax Account
Open TurboTax: Launch the TurboTax software on your computer or go to the TurboTax website and sign in to your account.
Access Your Return: Select "Open or continue your return" to get back to where you left off.
Sub-heading: Locating the Refund Section
Go to the "File" Section: In the left-hand menu (or navigation bar), look for the "File" section. This is crucial.
Find Refund/Payment Info: Within the "File" section, you'll typically see a step or option related to "Your refund/payment info" or "How you want to receive your refund." Select "Start," "Revisit," or "Continue" next to this step.
Sub-heading: Choosing Your Refund Option
"See All Options" or "Other Refund Options": On the screen that asks how you want to receive your refund (e.g., "Get your refund up to 5 days early"), you'll likely see an option like "See all options" or "Other refund options." Click on this. This step is often where users get stuck, as the direct deposit option might not be immediately visible or seem unchangeable.
Select "Direct Deposit": After clicking "See all options" or "Other refund options," you should be presented with various refund methods. Choose "Direct deposit" and then follow the on-screen instructions.
Sub-heading: Entering Your New Bank Details
Enter New Routing and Account Numbers: This is where you'll input the correct routing number and bank account number for your desired direct deposit.
Double-check, triple-check, quadruple-check! This is perhaps the most important part. Even a single digit off can lead to your refund being delayed or sent to the wrong account.
Verify Account Type: Ensure you select the correct account type (checking or savings).
Account Holder Name: The name on the bank account must match the primary taxpayer's name on the tax return. If it's a joint return, the account can be in either spouse's name or both. Deposits into accounts not matching the taxpayer's name are often rejected.
Confirm and Continue: Once you've entered and verified your new bank information, confirm the details and proceed through the remaining steps to finalize your filing process.
Step 3: What to Do if Your Direct Deposit is Rejected After Filing
Even if you entered incorrect information and your return was accepted, there's a safety net.
Sub-heading: The IRS Will Issue a Paper Check
If the bank account information you provided is invalid (e.g., wrong routing number, closed account, incorrect account number format), the financial institution will reject the direct deposit. When this happens, the IRS will automatically mail a paper check to the address listed on your tax return.
Be Patient: Receiving a paper check takes longer than direct deposit, usually several weeks from the date the direct deposit was rejected.
Verify Your Address: Make sure the mailing address on your filed return is accurate to ensure you receive the check.
Sub-heading: If the Funds Go to an Incorrect Valid Account
This is the trickier situation. If you accidentally entered an account number that belongs to another valid account (e.g., an old account of yours that's still active, or an account belonging to someone else you know), the funds might be deposited there.
Contact the Bank Immediately: Your first step is to contact the bank where the funds were mistakenly deposited. Explain the situation and see if they can assist in retrieving the funds. They may or may not be able to help, especially if the account belongs to another individual.
IRS Cannot Intervene: The IRS generally does not have the authority to retrieve funds once they have been successfully deposited into a valid account, even if it's not the intended recipient.
Step 4: Tracking Your Refund Status
No matter how you choose to receive your refund, it's always a good idea to track its status.
Sub-heading: Using the IRS "Where's My Refund?" Tool
Visit IRS.gov: Go to the official IRS "Where's My Refund?" tool (irs.gov/refunds).
Provide Information: You'll need to enter your Social Security Number (or ITIN), your filing status, and the exact refund amount shown on your return.
Check Status: The tool will provide you with the status of your refund:
Return Received: Your return has been received by the IRS.
Refund Approved: The IRS has processed your return and approved your refund. It will provide a date for when the refund is expected to be sent.
Refund Sent: Your refund has been sent.
Sub-heading: Checking Your Bank Account (for Direct Deposit)
Once the IRS "Where's My Refund?" tool indicates your refund has been sent, it's a good idea to check your bank account directly. Direct deposits typically appear within a few business days of the "sent" date.
Important Considerations:
Fraud Prevention: Always double-check any links or communications regarding your tax refund. The IRS will never contact you via email, text message, or social media to request personal or financial information.
Paying TurboTax Fees with Your Refund: If you opted to pay your TurboTax fees directly from your federal refund, this might affect how your direct deposit information is handled. Some users have reported needing to go through specific prompts to change bank details if this option was selected.
State Refunds: Remember that federal and state refunds are processed separately. You might need to check your state's tax website for information on your state refund status.
10 Related FAQ Questions
Here are 10 frequently asked questions, all starting with "How to," along with their quick answers, to further assist you with direct deposit on TurboTax:
How to check my direct deposit information after I've e-filed on TurboTax?
You can usually find your direct deposit account information on your Tax Return Summary within your TurboTax account after signing in. Look under "Your tax returns & documents" for the relevant tax year.
How to change my direct deposit if my return is still pending?
If your return is still pending, you should be able to go back into the "File" section of TurboTax, select "Your refund/payment info," and then "See all options" to change your direct deposit details before it's officially accepted.
How to find my bank's routing number and account number?
Your routing number and account number can typically be found on your checks (routing number is usually the first nine digits at the bottom, account number follows), by logging into your online banking, or by contacting your bank directly.
How to stop a direct deposit if I entered the wrong account after filing?
Once your return is accepted, stopping a direct deposit is extremely difficult and rarely possible. The IRS generally advises that if the bank rejects the deposit, they will mail a paper check. In very limited, early stages, you might try calling the IRS directly (800-829-1040), but it's not guaranteed.
How to handle a rejected direct deposit from the IRS?
If your direct deposit is rejected by your bank due to incorrect information, the IRS will automatically issue a paper check and mail it to the address on your tax return. This typically takes several weeks.
How to get my refund if my bank account was closed after I filed?
If your bank account was closed after you filed and the direct deposit is attempted, the bank will reject the deposit. The IRS will then mail a paper check to the address on your tax return.
How to split my tax refund into multiple direct deposit accounts using TurboTax?
TurboTax allows you to split your refund into up to three different accounts by utilizing IRS Form 8888, "Allocation of Refund." You'll find this option within the refund section when setting up your direct deposit.
How to know if my direct deposit information was successfully updated?
After making changes and before filing, TurboTax will show you a summary of your refund details, including the updated direct deposit information. Always review this summary carefully before you submit your return.
How to contact TurboTax support for direct deposit issues?
You can access TurboTax support through their website's help section, community forums, or by looking for options to contact a tax expert or customer service, though direct phone support for free editions may be limited.
How to avoid common direct deposit errors when filing taxes?
To avoid common errors, always double-check your routing and account numbers by comparing them with your bank statements or checks. Ensure the name on the bank account exactly matches the primary taxpayer's name on the tax return.
