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If your bank rejected the direct deposit of the tax refund then it was sent back to the IRS. The IRS will then mail a refund check to the address entered on the tax return.
December 30, 2023 3:49 PMIf your bank refused the deposit, the money was sent back to the IRS or ---if you were paying your TurboTax fees from your refund----back to the third party bank that handles refund processing. If it went back to the IRS, the IRS will issue a paper check and mail the check to the address on your tax return---better make sure you put the right mailing address on your tax form.
If you entered incorrect banking information for your refund, you can change it if your return is rejected. If it is accepted, however, it is too late to change it. The bank will reject the refund and send it back to the IRS. Then the IRS will issue a paper check and mail it to the address you put on your tax return. Expect a delay of at least several weeks to receive your refund.
Here is what the IRS says about entering incorrect banking information
If you used "refund processing" it is going to be more frustrating and take longer.
If you chose to have your fees deducted from your federal refund, but entered wrong or closed bank account information for your direct deposit, you are going to have an aggravating, frustrating situation. Your refund will go back to the third party bank. The third party bank might issue and mail you a check, or they might send your refund back to the IRS and then you will have to wait for the IRS to mail you a check.
If the third party bank mails the check, it will come in a plain envelope via first class mail so make sure you open all mail and do not assume anything is junk mail without opening it. While you are waiting, make sure that the address you entered on your tax return is correct, or your problem will be even worse.
if you chose to have your TurboTax fees deducted from your federal refund then the banking information on the tax form is the information to send your refund to the third party bank. That bank gets your refund first from the IRS. They take out your TurboTax fees and send the rest to you---and that bank has YOUR direct deposit information.
When you choose "refund processing" TurboTax gets its fees when the IRS releases your refund. Your refund goes to the third party bank. The bank takes out your fees and then that bank sends the rest of the refund to you.
How can I see my TurboTax fees?
Santa Barbara Tax Products Group , LLC (SBTPG) is the bank that handles the Refund Processing Service when you choose to have your TurboTax fees deducted from your refund. This option also has an additional charge from the bank that processes the transaction.
You can contact them SBTPG, toll-free, at 1-877-908-7228 or go to their secure website www.sbtpg.com
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
