TurboTax is not the only company to be on the ball. That may be why they jumped on the problem once it was discovered and say they are working closely with the IRS to rectify the issue. It's in the best interest of tax preparation companies to maintain the confidence of their customers. As part of the $900 billion relief bill passed in December 2020, the Treasury Department was given until Jan.
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Once the company deducted the fee and sent the remainder of the refund to you, they would have closed the temporary account set up to receive the refund.Īccording to the IRS, the glitch resulted from the speed at which they are required to distribute stimulus checks. In a typical year, unimpacted by a global pandemic, this temporary account would have represented business as usual. Once you permitted them to deduct their fee from your refund check, they opened a temporary bank account to receive the funds.
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You had two options: Cover the fee up front or allow the tax preparation service to receive your refund, subtract the service fee, and send the remainder on to you. Before you filed the return with the IRS, you were required to pay the tax preparation. It worked like this: You completed your return. If you find yourself caught up in the snafu, it is likely because you opted to pay the tax preparation fee out of your expected refund. Tax preparation companies across the country were quickly apprised of the situation and are working with the IRS to get money to the rightful recipients. Customers of H&R Block, Jackson Hewitt, and other tax preparation services experienced the same delay in payment, and for the same reason. Taxpayers who filed using TurboTax in 2019 were not the only ones impacted by the payment glitch. If you're eligible for a $600 stimulus check, you can file a Recovery Rebate Credit claim at that time (line 30 of Form 1040 or 1040-SR). If that's the case, you'll need to wait until you file your 2020 tax return to provide the IRS with your new account information. If you've changed banks since receiving your last stimulus check, your old bank is legally required to return the funds to the IRS. If not, TurboTax plans to make deposits into the bank account listed on your 2019 taxes. You may find that your stimulus money has already been deposited.
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If you are a TurboTax customer, check your bank account. On Friday, TurboTax began distributing the stimulus payments mistakenly sent their way. That's likely because the IRS mailed your stimulus money to the tax preparation company you used to file taxes. If you're one of them, you may find yourself waiting just a little longer for your stimulus check to arrive.
#Turbotax stimulus check software#
Millions of Americans used tax preparation software to complete their 2019 taxes.
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"We have been working around the clock on the stimulus payments and the filing season.While millions of Americans wait in frustration for their stimulus checks, tax preparation companies work feverishly to get them in the mail. "We are working hard to minimize the burden on taxpayers wherever possible during this extraordinary time," the spokesperson said. An H&R Block spokesperson also said the incidents were "isolated." Last year, the tax preparation companies came under fire after the IRS mistakenly sent the second stimulus payments to temporary "pass-through" accounts that had been set up in previous years.Īn IRS spokesperson told CNBC that any payments that had been sent this month to closed accounts would be returned and reissued in less than two weeks. In response to the backlash, a TurboTax spokesperson told CNBC that the account issue has only impacted a "small group" of customers.