@Drehamm wrote:
I know that much I’m just curious about If turbo tax sent them the correct routing and account numbers this time cause im December when we got the 600 stimulus check they sent it to the Santa Barbara bank if you got your fees taken out of your taxes I’m just hoping it doesn’t mess up again cause that’s money that I could use lol
Turbotax can't update the IRS, you have to do it for yourself when the IRS allows it.
Refund transfer is a bad idea and a bad product. At best, you are paying $40 extra so that you can avoid paying the Turbotax fees up front. The IRS will not split a tax refund with the software provider, so the only way for refund transfer to work is that your refund is sent to a third party bank that opens an account in your name, receives the refund, subtracts the fees, and forwards the rest of the money to your regular bank account. That means that refund transfer can only work if the IRS is given an account number for the third party bank and not your own regular bank account number. That's the way it works and the only way it can work.
Now, in theory, either Turbotax or the third party bank could tell the IRS what your correct bank account information is. However, that is possibly a violation of taxpayer privacy laws, since you never gave turbotax or the bank permission to share your account number. It also doesn't take into account that some taxpayers might have changed their bank account, or might not have filed recently and have no bank account on file with the IRS at all. And lastly, there never was a need for such a procedure before 2020, because the stimulus payments are unprecedented--have never occurred before in IRS history, and the IRS had no process in place to make such payments or gather correct bank information.
So the IRS is creating a process where the taxpayer will tell the IRS directly what bank account to use, if the bank account to be used for the advance CTC payments will be different than the one used for the most recent tax refund. This same procedure will be used by taxpayers who used refund transfer, who want to change their bank account for other reasons, and for taxpayers who did not recently file a return at all. And being the IRS, it's not ready yet.
