Turbotax Stimulus Update As Some Users Might Not Receive IRS Payment Until End of January

Second stimulus payments for some users of Intuit's TurboTax were reported to be "still at the IRS," and some may not receive payment until the end of the month, the tax-filing software company advised.

The company noted Monday on Twitter: "We have successfully gotten stimulus payments to millions of TurboTax customers affected by the IRS error.

"Unfortunately, for some tax filers affected by the IRS error, stimulus payments are still at the IRS. Without the IRS releasing these funds to us, we do not have a way to get your payment to you. The IRS will need to re-issue your stimulus payment.

"According to the IRS, stimulus payments are expected to be deposited into bank accounts by the end of January. If you are a TurboTax customer in this group, we have sent you an email directly letting you know," the company added.

In a statement on Friday, the IRS SAID: "IRS and Treasury continue to work closely with our partners in the tax and financial industry to do everything possible to get the second round of Economic Impact Payments [EIPs, stimulus payments] to the American people as quickly as possible.

"At this point, over 100 million EIPs have been direct deposited into eligible recipients' accounts. Some recipients may have had their payment directed to the temporary bank account established when their 2019 tax return was filed.

"The IRS and tax industry partners are taking immediate steps to redirect stimulus payments to the correct account for those affected. The IRS anticipates many additional taxpayers will receive payments following this effort," the statement added.

Last week, several TurboTax users were reported to be having issues receiving their second stimulus checks.

The IRS noted at the time: "Because of the speed at which [the] IRS issued this second round of payments, some payments may have been sent to an account that may be closed or no longer active. By law, the financial institution must return the payment to the IRS, they cannot hold and issue the payment to an individual when the account is no longer active."

What to do if you're affected

Customers are advised to check the Get My Payment tool on the IRS website to verify where their stimulus check was deposited or mailed.

For those receiving their second stimulus payment by mail (either as a check or in the form of a debit card), "the IRS urges people to carefully watch their mail for either of these during January."

"For those who have not yet received direct deposits, they should continue to watch their bank accounts for a deposit in coming days. IRS tax industry partners are taking steps to redirect stimulus payments to the correct taxpayer account for as many people as possible," the IRS said Friday.

The IRS also warned that the taxpayer information accessed via the Get My Payment tool, including account details and potential deposit dates, "may continue to display unfamiliar account numbers as the IRS continues to work through and update this issue.

"The IRS reassures taxpayers who do not recognize the bank account number displayed in the Get My Payment tool that deposits were not made to the wrong account; this is not an indicator of fraud.

"If you do not recognize the account number, it may be an issue related to how information is displayed in the tool tied to temporary accounts used for refund loans/banking products. The IRS is working to address this," the government body added.

Users who do not receive their full second stimulus payment or only receive a partial payment can claim a Recovery Rebate Credit on their 2020 tax returns.

"Taxpayers in this situation are urged to file electronically with direct deposit to ensure their tax refund–and their stimulus payment–reach them as soon as possible," the IRS said.

Those who are told they are not receiving a payment or that their payment status is unavailable when accessing the Get My Payment tool can check their eligibility using the 2020-2021 Stimulus Check Calculator found at the Intuit website or see the IRS website for more information on eligibility.