Taxpayers Filing Amended Returns Can Finally Get Their Refunds Via Direct Deposit

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What happenedThe IRS has announced that taxpayers who need to file an amended tax return will now be able to receive their associated refunds via direct deposit. Previously, filers who had to submit an amended tax return could only receive their refunds via paper check in the mail.So whatRoughly 3 million taxpayers file an amended return each year and now those refunds can hit bank accounts automatically, allowing recipients to get their hands on that money sooner.
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“This is a big win for taxpayers and another achievement as we transform the IRS to improve taxpayer experiences,” said IRS Acting Commissioner Doug O’Donnell. “This important update will cut refund time and reduce inconvenience for people who file amended returns.”Now whatYou may need to file an amended tax return if you make a mistake on your original return that isn’t just a matter of incorrect math (generally, the IRS can reconcile math errors on its own). You might file an amended tax return due to failing to claim the right credits and deductions, or claiming a tax break you realize you weren’t eligible for.Another big reason why filers often need to amend a tax return boils down to receiving an amended tax form from an outside party, like a 1099 form. These situations generally can’t be helped.However, one step you can take to avoid having to file an amended tax return is to submit your taxes electronically. Most software programs are designed to guide you toward the right credits and deductions so you know what to claim.If you want to reduce your chances of needing to file an amended tax return even more, hire a tax professional. Even though those who file an amended tax return are now eligible for direct deposit refunds, the simple act of having to resubmit a tax return is enough to delay that money. And at a time when inflation is surging, any refund-related holdup could be extremely detrimental.Alert: highest cash back card we’ve seen now has 0% intro APR until 2024If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR until 2024, an insane cash back rate of up to 5%, and all somehow for no annual fee. In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes. Read our free reviewWe’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy. 

What happened

The IRS has announced that taxpayers who need to file an amended tax return will now be able to receive their associated refunds via direct deposit. Previously, filers who had to submit an amended tax return could only receive their refunds via paper check in the mail.

So what

Roughly 3 million taxpayers file an amended return each year and now those refunds can hit bank accounts automatically, allowing recipients to get their hands on that money sooner.

“This is a big win for taxpayers and another achievement as we transform the IRS to improve taxpayer experiences,” said IRS Acting Commissioner Doug O’Donnell. “This important update will cut refund time and reduce inconvenience for people who file amended returns.”

Now what

You may need to file an amended tax return if you make a mistake on your original return that isn’t just a matter of incorrect math (generally, the IRS can reconcile math errors on its own). You might file an amended tax return due to failing to claim the right credits and deductions, or claiming a tax break you realize you weren’t eligible for.

Another big reason why filers often need to amend a tax return boils down to receiving an amended tax form from an outside party, like a 1099 form. These situations generally can’t be helped.

However, one step you can take to avoid having to file an amended tax return is to submit your taxes electronically. Most software programs are designed to guide you toward the right credits and deductions so you know what to claim.

If you want to reduce your chances of needing to file an amended tax return even more, hire a tax professional. Even though those who file an amended tax return are now eligible for direct deposit refunds, the simple act of having to resubmit a tax return is enough to delay that money. And at a time when inflation is surging, any refund-related holdup could be extremely detrimental.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2024

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR until 2024, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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