Millions of stimulus payments to TurboTax customers and others sent to the wrong accounts

Millions of stimulus payments to TurboTax customers and others sent to the wrong accounts

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The payments – worth up to $ 600 per taxpayer and $ 600 for each of its dependents – were part of Covid’s last aid package signed into law in late December.

The IRS began issuing direct deposits of these payments on December 29 and says that up to 100 million have already been completed.

But, according to Intuit TurboTax to spokeswoman Ashley McMahon, “millions of payments have been sent to the wrong accounts and some may not have received their stimulus payments.”

About 13 million people may have been affected, according to a source in the banking sector.

The IRS on Friday said it was taking immediate steps to redirect stimulus payments to the correct account for those affected.
“For taxpayers who have verified Get My Payment and received a response indicating that a direct deposit should be sent to an account that they do not recognize, the IRS advises them to continue monitoring their bank deposits,” advised the agency.

The people most likely to be affected are those who have used early repayment loans or similar products. In such cases, their stimulus payments may have been directed to the temporary bank account established by the online tax preparation company they used when their 2019 tax return was filed.

It may also have affected some people who changed their bank last year, and the IRS does not yet have their new registered checking account.

Earlier this week, the IRS attributed the error to the speed with which the new law required the agency to issue the second round of Economic Impact Payments.

For those who do not receive the stimulus payment before filing their 2020 income tax return, the IRS advises them to claim refundable recovery discount credit. The credit will be granted in the same amount as the stimulus payment for which you are eligible. Repayable credits reduce your dollar-for-dollar tax obligation, and if you exceed your tax obligation, the rest will be sent to you as a refund.
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Friday morning early, TurboTax said its customers are likely to start seeing their stimulus payments deposited directly soon.

“Stimulus payments will begin to be deposited on January 8 for millions of our customers affected by the IRS error,” wrote the company on its blog. “We expect that most of these payments will be available that day, but banks may take a few business days to process.”

TurboTax said it will send an email to customers when their payments are deposited.

You can find more information from the IRS on the status and procedures for receiving your stimulus payment here and here.

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