NO, TurboTax has a glitch which they repeatedly do not fix year after year. Please see my comments to Doc's Answer ... in order to also have DirDep for State (at least on a CA return) follow the steps in my answer to Doc5108 (Intuit will not allow me to past my info in this form but I could as a comment to "Doc")
ONE POSSIBILITY which I don't use ... if you e-file state then you might also be prompted to verify DirDep for state.
WARNING - Even if you have DirDep set up from a prior year, DON'T ASSUME IT WILL WORK THIS YEAR. While the Fed DirDep has transferred every year I can remember, my State DirDep info for some reason is NEVER transferred.So I have to use the steps listed to add it back every year.
Even if you
enter your Dir Dep info and you see the Dir Dep for the Federal return, it is
not set up on the state return.
• This has been a long term glitch
• I have
complained about this issue for over TEN YEARS NOW:
ISSUE
• You enter Dir Dep info during Easy Step for your Federal return.
• You are never asked if you want Dir Dep for your State return.
• OR
• Even if you made certain in the prior year that your TurboTax file had the
correct settings and information so a state refund was refunded by Dir Dep, the
settings and info for the state return ARE NOT imported into your new tax year
file for state even though they ARE for federal.
• ALSO
• In Easy Step there is NOTHING to allow you to specify you desire Dir Dep for
your State return
• This assumes you have a legitimate refund (if you owe, there will be no Dir
Dep)
• THE 1040 Info Worksheet settings for THE SAME INFO are ALWAYS imported into
the new tax year file.
• The 540 Info Worksheet settings ARE NEVER imported. The choice to have the
Dirdep is not imported AND the bank settings are not imported.
• DISCLOSURE I only fill out returns involved with California, it is possible,
based on some other user comments I read, some states do not allow Dir Dep
refunds under certain conditions.
SOLUTION
• Leave Easy Step temporarily. Click on View / Forms
• Scroll down until you see <State> and the second form should be Info
Worksheet, Click it once and the form will open to your right.
• Scroll down to PART VII, click the Yes to elect DirDep of state refund, then
enter the Institution, Check/Sav, Routing Number, and Accounting number.
