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

Millions of stimulus payments for 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 their dependents – were part of the latest Covid relief package signed at the end of December.

The IRS began issuing direct deposits of payments on Dec. 29, saying up to $ 100 million has already been completed.

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

According to one source in the banking industry, about 13 million people could be affected.

The IRS said Friday that it is taking immediate steps to divert stimulus payments to the right account for those affected.
“For taxpayers who have reviewed Get My Payment and received a response indicating that a direct deposit should be sent to an account they do not recognize, the IRS advises them to continue to open their bank accounts. monitor for deposits, “the agency advised.

Those most likely to be affected are those who have used loans for repayments or similar products. In those cases, their stimulus payments can be sent to the temporary bank account by the online tax preparation firm they used when filing their tax return for 2019.

It may also have affected people who have changed banks in the past year, and the IRS has not yet recorded their new 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 payments with economic impact.

For anyone who does not receive their stimulus payment before submitting their tax return for 2020, the IRS advises them to claim the repayable Repayment Credit. The credit is awarded on the same amount as the stimulus payment for which you are eligible. Refundable credits reduce your tax liability dollar-for-dollar and if it exceeds your tax liability, the rest will be sent to you as a refund.
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Early Friday morning, TurboTax said its customers are likely to start seeing their direct deposited stimulus payments soon.

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

TurboTax said it will email customers when their payments have been paid in.

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

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