TurboTax Stimulus Check Update as Customers Await Direct Deposit Payments

The IRS has begun issuing third stimulus payments, with some Americans expected to receive theirs over the weekend.

The first batch of payments are being sent by direct deposit while additional batches will be sent in coming weeks by direct deposit and by mail as a check or debit card, the IRS said Friday.

Some users of Intuit's TurboTax, the tax-filing software, could potentially face delays in receiving their third stimulus payments if the bank information provided on their latest filed tax return is not up-to-date or no longer valid.

Users whose bank details have changed since filing their latest tax return could face issues as they currently aren't able to update their bank information.

"Right now, there is no way to change your information for your stimulus check. The payment will be based on the information from your latest tax return and will go to the bank account or address the IRS has on file for you," TurboTax advises.

While the Get My Payment tool on the IRS website allows people to check the status of their third payment, it doesn't allow them to update their bank information.

Residents whose third stimulus funds are sent to either a closed or the wrong bank account are expected to face delays as the IRS will be required to reissue the payment as a check to be mailed to your home.

Back in January, some TurboTax users experienced delays receiving their second stimulus payments due to an error. Users were warned at the time that some payments may have been sent to bank accounts that are no longer valid.

Twitter user @MotherLeonard asked TurboTax on Monday: "With the second stimulus, TurboTax customers dealt with a delay due to an error. Is TurboTax better prepared for the third round or should we anticipate a delay again?"

TurboTax replied: "We know stimulus checks are important and we confirmed with the IRS that they have accurate final bank account information for all TurboTax customers."

Newsweek has contacted TurboTax for comment.

Eligibility for third stimulus payments is determined using residents' latest tax return from either 2020 or 2019.

"The IRS will use data already in its systems to send the third stimulus payments. Taxpayers with direct deposit information on file will receive the payment that way. Those without current direct deposit information on file will receive the payment as a check or debit card in the mail," according to the IRS website.

"No action is needed by most taxpayers; the payments will be automatic and, in many cases, similar to how people received the first and second round of Economic Impact Payments in 2020," the IRS said Friday.

On Friday, President Joe Biden tweeted: "85 percent of American households will get direct checks from the American Rescue Plan."

Income levels in the latest round of stimulus payments have changed. Some may not be eligible for the third payment even if they received a first or second stimulus payment or claimed Recovery Rebate Credit (RRC), the IRS explains.

"The third stimulus payment will be larger for most people. Most families will get $1,400 per person, including all dependents claimed on their tax return. Typically, this means a single person with no dependents will get $1,400, while a family of four (married couple with two dependents) will get $5,600," the IRS said Friday.

Third stimulus checks are protected from being seized for tax, child support and other government debts.

But private creditors and debt collectors can use stimulus funds to cover fees such as civil damages or consumer debt. The IRS could also potentially access stimulus payments claimed through RRC.

The graphic below, produced by Statista, illustrates the composition of the $1.9 trillion stimulus package.

Stimulus Package 1.9tn - Statista
Statista
TurboTax software California store 2016
TurboTax software products displayed at a Costco store on January 28, 2016 in Foster City, California. Some TurboTax users could potentially face delays in receiving their third stimulus payments. Kimberly White/Getty Images for TurboTax