TurboTax Stimulus Update As Users Report Issues With Receiving Checks
Users of Intuit's TurboTax, the tax-filing software, have reported issues with receiving their second stimulus checks, with the IRS warning some payments may have been sent to bank accounts that are no longer valid.
In a statement Monday, the IRS said: "Payments started going out last week and will continue through mid-January. Direct deposit payments are being made first to those that have valid routing and account information on file for direct deposit purposes.
"Because of the speed at which [the] IRS issued this second round of payments, some payments may have been sent to an account that may be closed or no longer active. By law, the financial institution must return the payment to the IRS, they cannot hold and issue the payment to an individual when the account is no longer active," the IRS said.
Several users took to social media to voice their concerns. Adaora Okoli, an internal medicine resident physician at Tulane University, tweeted: "Apparently, the IRS screwed up stimulus deposits for people who filed with TurboTax and got their filing payment deducted from their tax return."
User @meaganrosae, a freelance writer, tweeted: "If you used Turbo Tax or HR Block and had your filing fees deducted from your return, the IRS probably sent your $600 to them instead. Why this happened when the IRS had most DD [direct debit] info on file, I have no idea."
"Apparently HR Block/Turbo Tax create a temp bank account to process your fees from your return, I think. So the IRS sent your stimulus there. Lots of folks seeing bank account numbers they don't recognize on the IRS site — this is why," the user added.
What TurboTax says
Speaking to Newsweek, a spokesperson for Intuit said: "The IRS is the sole party with the ability to determine eligibility and distribute stimulus payments. As part of the income tax filing, the IRS receives accurate banking information for all TurboTax filers who receive a tax refund, which the IRS can use to deposit stimulus payments.
"While the IRS is exploring options to correct their issue, they have stated that this may cause a delay in stimulus payments for some.
"We know how important these funds are for so many Americans and that everyone is anxious to get their money. We are partnering with the IRS to help taxpayers receive their payments as quickly as possible," the spokesperson added.
What to do if you're affected
The Intuit website notes: "For those eligible [for the second stimulus check] but who don't receive the payment for any reason, it can be claimed by filing a 2020 tax return in 2021."
The IRS also said in its Monday statement: "While the IRS is exploring options to correct these payments, if you have not received your full payment by the time you file your 2020 tax return, you may claim the Recovery Rebate Credit on your tax return.
"The credit is figured like the Economic Impact Payment, except that the credit eligibility and the credit amount are based on the 2020 tax year information, including income.
"For people who received a partial Economic Impact Payment, they can take the Recovery Rebate Credit for any remaining amount they're eligible for by completing line 30 of the 2020 Form 1040 or 1040-SR."
Both the IRS and Intuit advise that customers should check the Get My Payment tool on the IRS website to verify where their stimulus check was deposited or mailed.
The IRS is unable to change any user's payment details, including bank account or mailing information.
"If your payment was delivered to a prepaid Turbo VisaDebit Card and you no longer have it, we'll help you get a replacement card at no cost," Intuit adds.
Those who are told they are not receiving a payment or that their payment status is unavailable when accessing the Get My Payment tool can check their eligibility using the 2020-2021 Stimulus Check Calculator found at the Intuit website or see the IRS website for more information on eligibility.
