@abigailluv23
You said you are paying your TurboTax fees out of your Federal refund. In that circumstance, the IRS will send the direct deposit to an intermediary bank, where the fees are taken out. Then that intermediary bank would try to make the deposit into your bank, where you say the account is closed. If your bank rejects the deposit from the intermediary bank, it goes back to the "sender" of the funds, which in that circumstance is the intermediary bank. i.e., that second direct deposit is from the intermediary bank--not from the IRS. When the intermediary bank gets it back, one of 2 things can happen.
Most commonly the intermediary bank would send you a check to the address on your return, less a service fee for the failed deposit. So be careful when looking through your mail so that you don't think it's "junk mail" by mistake. But occasionally when it goes back to the intermediary bank, the intermediary bank, for reasons unknown to me, will send it back to the IRS and let the IRS issue a paper check in the mail.
In case you end up needing to talk to them, the third-party company that administers that "pay out of refund" method is Santa Barbara Tax Products Group (SBTPG). Scroll down on the linked page below to get their phone number.
https://help.sbtpg.com/hc/en-us/articles/230084587-Contact-information
SBTPG also has a refund lookup tool on their website, that might give you some info once the IRS releases your funds. Use the "For Taxpayers" button at:
https://www.sbtpg.com/
One other wrinkle, although much less common:
If you voluntarily closed the bank account recently, sometimes a bank will automatically re-open the account back up if a direct deposit comes in within "X" number of days, such as within 30 or 60 days, etc. Check with your bank to see what their policy is in that regard.
