What happens when a refund is returned to the originator?

[brandy_humphrey0]

I received my direct deposit for my taxes but they sent it back.

[xmasbaby0]

If you e-filed:

Banking information for direct deposit is wrong

If you entered incorrect banking information for your refund, you can change it if your return is rejected.  If it is accepted, however, it is too late to change it.  The bank will reject the refund and send it back to the IRS.  Then the IRS will issue a paper check and mail it to the address you put on your tax return.  Expect a delay of at least a couple of weeks to receive your refund.

Here is what the IRS says about entering incorrect banking information

https://www.irs.gov/help-resources/tools-faqs/faqs-for-individuals/frequently-asked-tax-questions-an...

[brandy_humphrey0]

I've double checked my banking information and it's completely accurate. That's not it, my sister's friend posted on Facebook that she had the same issue as myself and still no help from anywhere. It's frustrating I have four small children and I feel like no matter how hard and how much I work it doesn't pay off...

[mesquitebean]

Have you talked to the bank and asked them why they sent it back?   If you know they received it and sent it back, then they must know some reason.

Also who was the deposit from?   Was it a Federal refund from the IRS/US Treasury, or was it a state refund (if applicable) from your state tax agency?  

Or did you choose to pay any TurboTax fees out of the Federal refund?   If you chose to pay any fees out of the Federal refund, the deposit to your bank does not come from the IRS.    With that payment method, the IRS sends a Federal refund to an intermediary bank where the fees are subtracted.  Then it is that intermediary bank that sends the rest of the refund on to your bank (or card) account.  So if that deposit is refused by your bank, it goes back to the intermediary company that processed the fees.    If you DID use that option to pay product fees, we can tell you how to check on it with the third-party company SBTPG that handles it. 

[brandy_humphrey0]

Thank you for your reply. I did use Turbotax and had them remove the fee's from my Federal tax. Also I got a hold of my bank and they said they didn't know why it was sent back.

[CarissaM]

If your name was different on the bank than what it was on the return, that could cause the refund to be denied by your bank. 

[mesquitebean]

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@ brandy_humphrey0 wrote:

Thank you for your reply. I did use Turbotax and had them remove the fee's from my Federal tax. Also I got a hold of my bank and they said they didn't know why it was sent back.

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You said TurboTax removed the fees from your Federal "tax."  But I presume you meant from your Federal refund.

As  CarissaM mentioned, perhaps the account name didn't match exactly.

Since you paid your TurboTax product fees out of your Federal refund, you might be able to follow the process and get some information on "where" it is by signing into your temporary account at SBTPG (Tax Products Group) that handles that process.  They receive the funds from the IRS and subtract the fees, then send it on to your bank.  If the deposit from SBTPG's bank to your bank fails, then SBTPG would normally send a check in the mail to the address on the return.   In less-common instances, they might send it back to the IRS, who would send a check in the mail.

If you wish, you can see if you can learn any info by signing in at this page.

https://www.sbtpg.com/

Choose the "For Taxpayers" portal.

Then choose the tool "Check with TPG."

If you need to speak to them at some point, SBTPG has a phone contact page at the following link. It also shows their business hours. 

https://help.sbtpg.com/hc/en-us/articles/230084587-Contact-Information

[brandy_humphrey0]

The only thing different from my Federal Return and State return is my middle initial. I received my state refund with no problem.