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My stimulus payment has been delayed because I e-filed through Trubo Tax. How long is the delay?

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April 17, 2020
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TurboTax Free Edition Online

Best answer by Opus 17

If you used Turbotax and had a direct deposit paid into your regular bank account without using refund processing to pay your fees, then the IRS has your bank info and your payment should not be held up. Also, if you requested your refund be deposited on a NEW debit card, then the IRS has the account number of that debit card and will use that. Your payment will not be delayed by Turbotax.

If you used refund transfer to pay your Turbotax fees out of your refund, you put another bank in between you and the IRS. Since the IRS does not have your regular bank account number, they will mail a check. We don't know the time frame for that.

(Refund transfer is never a good idea and I never recommend it. There are better and cheaper ways of paying the Turbotax fees that do not have a $40 service charge and do not hide your information from the IRS.)

When you use refund transfer to pay your fees from your refund, your refund is sent to a third party bank that opens a new account in your name to receive the refund, they deduct the fees, and send the rest of the money to you. This is because the IRS will not split the refund and pay Turbotax for you. This means that the IRS only sees the account number for your temporary account at the in-between bank and never sees your regular bank account number. You agreed to this, even if you didn't understand what you were agreeing to.

As a result, the IRS may try to send your stimulus payment to a closed account at the in-between bank. When it gets rejected, they will send a check to the mailing address on your tax return instead but it will take longer. You may be able to update the IRS with your actual bank information at their web site. https://www.irs.gov/coronavirus/economic-impact-payments

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Opus 17Answer

Employee

If you used Turbotax and had a direct deposit paid into your regular bank account without using refund processing to pay your fees, then the IRS has your bank info and your payment should not be held up. Also, if you requested your refund be deposited on a NEW debit card, then the IRS has the account number of that debit card and will use that. Your payment will not be delayed by Turbotax.

If you used refund transfer to pay your Turbotax fees out of your refund, you put another bank in between you and the IRS. Since the IRS does not have your regular bank account number, they will mail a check. We don't know the time frame for that.

(Refund transfer is never a good idea and I never recommend it. There are better and cheaper ways of paying the Turbotax fees that do not have a $40 service charge and do not hide your information from the IRS.)

When you use refund transfer to pay your fees from your refund, your refund is sent to a third party bank that opens a new account in your name to receive the refund, they deduct the fees, and send the rest of the money to you. This is because the IRS will not split the refund and pay Turbotax for you. This means that the IRS only sees the account number for your temporary account at the in-between bank and never sees your regular bank account number. You agreed to this, even if you didn't understand what you were agreeing to.

As a result, the IRS may try to send your stimulus payment to a closed account at the in-between bank. When it gets rejected, they will send a check to the mailing address on your tax return instead but it will take longer. You may be able to update the IRS with your actual bank information at their web site. https://www.irs.gov/coronavirus/economic-impact-payments

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Ejr84

This is proving to be inaccurate information, as I check all the boxes for being eligible to receive a stimulus deposit, have NOT received my direct deposit, but DID supply my banking info to turbo tax when I filed my 2019 taxes and did NOT use the refund processing method—I paid my fees up front with the same card attached to my checking account. So therefore, by your information provided, the irs should have my bank info and there should be no reason for delay under that reasoning.

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Opus 17

Employee

How do you know the IRS isn’t screwing up?

When did you file your 2019 tax return, and what is the status of your refund? Did you file a 2018 tax return last year, and did you use the same bank account for direct deposit, and did you get your refund last year?