Turbotax Stimulus Update as Millions Hit by IRS Error to Receive Payments from Today

Millions who use Intuit's TurboTax, whose second stimulus payments were delayed due to an error by the Internal Revenue Service (IRS), will begin receiving their money from Friday.

The tax-filing software company advised Friday: "We are happy to share that stimulus payments will begin to be deposited today for millions of our customers affected by the IRS error," in a post on Twitter.

"We expect most of these payments to be available today, but banks could take a few business days to process. Payment will be deposited into the same bank account that customers received their 2019 tax refund.

"Customers receiving a stimulus payment will receive an email from TurboTax letting them know their stimulus payment is on the way," the company added.

Earlier this week on Monday, the IRS warned some second stimulus payments may have been sent to bank accounts that are no longer valid.

"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[the] IRS issued this second round of payments, some payments may have been sent to an account that may be closed or no longer active.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must return the payment to the IRS, they cannot hold and issue the payment to an individual when the account is no longer active," the IRS said.

In an updated statement on Thursday, the IRS advised: "The direct deposit payments may take several days to post to individual accounts. Some Americans may have seen the direct deposit payments as pending or as provisional payments in their accounts before the scheduled payment date of January 4, 2021, which is the official date funds are available.

"Paper checks also began going out and will continue to be sent through January. Some people will be mailed debit cards in January, and the IRS urges people to carefully check their mail.

"Mailed payments will require more processing and mailing time. Those who reside abroad will have longer wait times for checks as disruptions to air travel and mail delivery in some countries will slow delivery," the IRS noted.

The U.S. Treasury Department and IRS also stated they will begin issuing around eight million second stimulus payments by prepaid debit cards, known as Economic Impact Payment (EIP) cards, from this week.

In a statement Thursday, the IRS noted: "These EIP Cards follow the millions of payments already made by direct deposit and the ongoing mailing of paper checks that are delivering the second round of Economic Impact Payments as rapidly as possible.

"For those who don't receive a direct deposit, they should watch their mail for either a paper check or a prepaid debit card. To speed delivery of the payments to reach as many people as soon as possible the Treasury's Bureau of Fiscal Service is sending payments out by prepaid debit card," the statement added.

The IRS and Intuit advise customers to check the Get My Payment tool on the IRS website to verify where their stimulus check was deposited or mailed.

Those who do not receive their full second stimulus payment by the time they file their 2020 tax returns can claim a Recovery Rebate Credit on their tax returns, the IRS noted.

"For people who received a partial Economic Impact Payment [second stimulus 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," the IRS said.

Users 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.