Is TurboTax sending stimulus money back to the IRS because you all don't want anything to do with your customers using this app to file their 2020 tax returns

[lilliehester]

Is TurboTax sending stimulus money back to the IRS

[NCperson]

IRS sends money directly to your financial institution. ..Turbo Tax never touches it 

[Critter-3]

First Turbotax never gets your refunds ... they are not part of the process.    So if you used the third party bank to receive your refund, pay the TT fees and send the rest to your bank account or to a prepaid debit card then  according to the IRS this time they will not send the stimulus  to the third party banks and if they do the banks will not accept them if they are sent :

If you used the refund processing service to pay the TT fees from the federal refund and the balance put on the TT card then the processing bank will NOT be accepting those deposits.  They will be rejected and the IRS will issue a check mailed to the address they currently have on file.  Putting in a change of address with the IRS before filing your return will be a waste of time since it will not be processed fast enough but you can put in a forwarding address with the post office if allowed.

The IRS will stop mailing payments on 1/15  so if you do not get a check in the mail by 1/27 you can get the money on the 2020 return you will file.  The IRS will not start processing returns until 1/27 at the earliest so you have time to wait and see.  

https://www.sbtpg.com/coronavirus-stimulus-payment-info/Economic Impact Payment Information

Last updated: Dec. 30 2020 8:12 am

12/30/2020 Update

The IRS has announced that the second round  Economic Impact Payments(EIP) are being delivered directly to qualified taxpayers, and the IRS has indicated payments will NOT  be delivered to Refund Transfer banks including Santa Barbara TPG. TPG will not play a role in facilitating these payments. The eligibility amount and status of your stimulus payment can be found at IRS.gov/coronavirus.

If the IRS indicates funds were sent to TPG those funds will be rejected back to the IRS. The IRS may indicate funds were deposited to an account ending in the last four digits of your Social Security number. For your protection any account that was established at TPG to facilitate processing of your tax refund was closed when you received your original tax refund, and that account no longer exists.

Unfortunately, TPG does not have any visibility into this information, therefore our agents cannot answer any questions regarding these payments.

TurboTax has NO control over your stimulus check, nor can TT track it or tell you when you will receive it.  The IRS will use the same banking information for the 2nd stimulus that they used for the first one.  If that account (or card) is closed then the stimulus will go back to the IRS and they will mail you a check.

See this information from the IRS:

https://www.irs.gov/newsroom/treasury-and-irs-begin-delivering-second-round-of-economic-impact-payme...

From the IRS:

Bank Account Information

Where did the IRS get my bank information, and what if I need to change it? (updated May 15, 2020)

My bank account information has changed or was incorrect. Can I update it using the tool? (updated J...

No. To help protect against potential fraud, the tool does not allow people to change direct deposit information already on file with the IRS.

If we issue a direct deposit and the bank information is invalid or the bank account has been closed, the bank will reject the deposit. We will then mail your Payment as soon as possible to the address we have on file for you, and we will update Get My Payment to reflect the date your payment will be mailed. Typically, once the payment is mailed, it will take up to 14 days to receive the payment, standard mailing time.

This was published in the Wall Street Journal  and begins to explain the timing and how these 2nd payments are going to occur: 

"To avoid sending money during tax-filing season, Congress established a Jan. 15 deadline for making the stimulus payments. Eligible individuals who don’t receive a check or direct deposit by that date will have to request a $600 refund when filing 2020 tax returns. "

That means the IRS is going to have to change how the EIP form that ties to Line 30 works prior to opening up the submission window in late January..... and it's how they are going to ensure that there isn't any unintentional 'double dipping' (I get a stimulus payment and I fail to state that on my 2020 tax return)

The IRS has no Congressional authority to send out payments after January 15, 2021.  The law further states this 2nd stimulus (like the 1st one) is an advance of the 2020 tax return - not the 2021 tax return!

Once we get past January 15, 2021, the only way the IRS has to get the 2nd stimulus to taxpayers is through the 2020 tax return, which I suspect means re-tooling the EIP form that ties to Line 30. 

and sure enough this is what the tax bill states (page 1969 if anyone really cares)

‘‘(ii) DEADLINE.—
23 ‘‘(I) IN GENERAL.—Except as
24 provided in subclause (II), no refund
25 or credit shall be made or allowed
under this subsection after January
15, 2021.

Hot off the press ... straight from the horse's mouth ...

https://www.irs.gov/newsroom/treasury-and-irs-begin-delivering-second-round-of-economic-impact-payme...   

[Opus 17]

If you selected that you would pay your pay your TurboTax fees from your refund, then the IRS does not have your banking information.  To pay your fees from your refund, your refund must go to a third-party bank which opens a temporary account in your name, deducts the fees, and then closes the account and sends the rest of your refund to your regular bank. This is because the IRS will not split the refund with TurboTax. This also means that the IRS does not have your real banking information, it only has the information for the temporary account at the third party bank.  

This will also happen if you choose to have your refund paid on a debit card or if you request the refund advance, because in both of those cases, your refund must also go to a temporary account at a third-party bank and not directly to your regular bank account.

The IRS knows which banks are used for this service, and if they see that your refund was sent to one of these banks, they should mail you a check or a debit card containing your stimulus payment.   If the IRS sends the stimulus payment to the third-party bank, in some cases the third-party bank will be able to re-open your temporary account and put the stimulus payment on your debit card. In other cases, the third-party bank will reject the payment and send it back to the IRS.

You also had the opportunity up through about October to go to the IRS website and inform them of your correct banking information. If you did not do this, it is not TurboTax’s fault.

I have always argued that paying your fees out of your refund is a terrible idea, not only because it cost an extra $40 service charge, but because it puts another bank that you don’t know in between you and your refund. There are many other ways of paying TurboTax’s fees without using the service.  The economic stimulus payment in 2020 simply makes the refund transfer idea even worse than usual.

You should expect that your second round payment will be paid to you in the same way as the first round payment. If not, that’s on the IRS as well, TurboTax has no control over how the IRS processes payments. Any payment that you do not receive by January 15 can be claimed as part of your refund on your 2020 tax return.

[grice]

i did not receive my check after the text that it was coming.  what do i do   when i try and check on IRS it is saying my info does not match can you help me please;

thanks

[JamesG1]

The IRS Get My Payment tool can be difficult to work with.

If you have not received your second stimulus check, you will receive your payment in the form of a Rebate Recovery Credit on line 30 of your 2020 Federal tax return when you file.

TurboTax will compare your one or two stimulus payment amounts to the computations within TurboTax.  The computations within TurboTax are based upon the information that you have entered into the tax software.  If you are due an additional amount, it will be issued as a Rebate Recovery Credit (RRC) on line 30 of the 2020 1040 tax return. 

In TurboTax Online, you are prompted to input stimulus check 1 and stimulus check 2 information under Review down the left hand side of the screen.

You can access your stimulus check choices by following these steps: 

• Down the left side of the screen, click on Federal.
• Across the top of the screen, click on Other Tax Situations.
• At the screen Let’s keep going to wrap up.  Click on Let’s keep going.
• At the screen Let’s make sure you got the right stimulus amount, click Continue.
• At the screen Did you get a stimulus payment? you can update your stimulus check entries.

See also this TurboTax Help.

[SMP81309]

Both payments, husband and myself were never deposited in our accounts as stated by IRS on 1/4/2021.  I called the financial institution as recommended, and was told the payments were rejected because the info on the account didn't match. Both names are on the joint account. Where did the checks go?  ( The 1st  payments went to different accounts, why not the same banking info?)

[DoninGA]

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@SMP81309 wrote:

Both payments, husband and myself were never deposited in our accounts as stated by IRS on 1/4/2021.  I called the financial institution as recommended, and was told the payments were rejected because the info on the account didn't match. Both names are on the joint account. Where did the checks go?  ( The 1st  payments went to different accounts, why not the same banking info?)

---

Complete and file your 2020 federal tax return.  You will be eligible for the Recovery Rebate Credit for the stimulus payments you did not receive.

The stimulus questions are asked in the Federal Review section of the TurboTax program.  Any payment you were eligible to receive based on the 2020 Federal tax return but did not receive will be entered on the Federal tax return, Form 1040 Line 30 as a tax credit.  The credit is included in the federal tax refund or it will reduce the amount of federal taxes owed.

[JamesG1]

The IRS recently began issuing a second round of stimulus payments to those eligible. Unfortunately, because of an IRS error, millions of payments were sent to the wrong accounts and some may not have received their stimulus payment.

If you were entitled to a stimulus payment but did not receive one, you may need to claim the Recovery Rebate Credit on your 2020 tax return to get your money.

In TurboTax Online, you are prompted to input stimulus check 1 and stimulus check 2 information under Review down the left hand side of the screen.

You can access your stimulus check choices by following these steps: 

• Down the left side of the screen, click on Federal.
• Across the top of the screen, click on Other Tax Situations.
• At the screen Let’s keep going to wrap up.  Click on Let’s keep going.
• At the screen Let’s make sure you got the right stimulus amount, click Continue.
• At the screen Did you get a stimulus payment? you can update your stimulus check entries.

TurboTax will compare your two payment amounts to the computation within TurboTax.  The computations within TurboTax are based upon the information that has been entered into the tax software.  If you are due an additional amount, it will be issued as a Recovery Rebate Credit (RRC) on line 30 of the 2020 1040 tax return.

See also this TurboTax Help.