If you need to change your direct deposit information on TurboTax, follow the step-by-step directions given below.
To access your account, login with your username and password. If you do not remember your login credentials, TurboTax provides account recovery options.
On the main page, look for the ‘navigation’ menu on the top and click on the “My Account” option in this menu.
Under the “My Account” section, you will see a list of options to manage your TurboTax account.
Look for an option that reads ‘refund’ or ‘payment.’ Within the section, click on the “Direct Deposit” option to manage the direct deposit information.
Once you click the “Direct Deposit” option, you will be redirected to a new page to edit/add your latest bank account information.
The page will prompt you to enter all the necessary information related to your direct deposit, such as your account number, routing number, account type, etc.
As a part of the account setup process, TurboTax might send you a verification code via email or text. At times, test deposits of a few cents are sent for account validation.
To ensure the accuracy of the new direct deposit information, TurboTax will prompt you to review and confirm the changes before submitting the new information.
After reviewing all the information, you can submit the changes. You will find a ‘continue’ or ‘confirm’ button on the screen to submit the changes.
If any information is lacking or missing, TurboTax will guide you to provide the same to complete the process.
Once you successfully submit your new direct deposit information, TurboTax will send you an update confirming the changes.
There are several benefits of using direct deposit on TurboTax, which are discussed below:
Even though no method is 100% foolproof, the use of direct deposit on TurboTax mitigates the risk of fraud to a great extent. It’s more secure than a paper check because funds are transferred electronically.
With direct deposit, your refund will be available for use faster than any other mode of payment because the money will be transferred directly to your account. You will also have a clear record of everything.
Once you update your direct deposit on TurboTax, you will get the tax refund deposited directly into your account. So, there’s no need to visit a bank or ATM to deposit a paper check.
Physical checks can get lost when we are not available at our regular mailing address. By opting for direct deposits, you will receive the funds securely even when you are away from your mailing address.
Physical refund checks can sometimes take a long time to arrive due to unforeseen circumstances. Paper checks can also get lost or misplaced during transit. With direct deposits, you won’t run into such issues.
You will need to provide a few personal and financial information to set up direct deposit on TurboTax, which are as follows:
- Full name
- Social Security Number
- Email address
- Bank account details
There are certain limitations regarding the use of direct deposit on TurboTax, which are discussed below.
- If the return is already filed, you will have to go through additional steps to change your direct deposit information.
- If you happen to provide incorrect information, your refund will get delayed.
- Some banks may also charge fees for receiving tax refunds through direct deposits.
- The TurboTax security procedures require one to go through additional verification steps.
Both processes involve electronic methods to streamline tax-related procedures. Electronic filing is a process of filing your tax electronically, which is submitted to the IRS. It’s faster than filing a paper return.
With respect to tax refunds, you can receive the refund amount through a physical paper check or directly into your bank account. Direct deposit lets you receive the tax refund electronically into your designated bank account.
A tax return is a form you send to the IRS to report your financial information. It shows how much you earned in a financial year and how much you owe towards taxes to the government.
A tax refund is the amount the government pays you back for excessive payment towards taxes. It’s normally issued after you file your tax returns.
Other than direct deposit, you can receive your tax refund through a paper check or prepaid debit card. The tax refund can also be used to purchase U.S. Saving Bonds. Furthermore, you can apply the tax refund to next year’s taxes.
While filing taxes using tax software or through a tax professional, you can donate the full amount or a portion of the tax refund amount to qualified charitable organizations set by the IRS. You will most likely receive some tax benefits out of your donation.
The refund processing time can vary based on the accuracy of the submitted information and the volume of the tax returns processed by the IRS during peak tax filing months.
Usually, direct deposit tax refunds are processed within 21 days of your IT return being accepted. The processing time for physical paper checks is much longer. Therefore, direct deposits are suggested for faster refund processing.