How Can I Enter Direct Deposit Information in ProWeb?
Electronic Return
In the event that the taxpayer chooses to e-file their return, to enter their direct deposit information, they should:
- Go to the Tax Return Summary Page
- Select E-File
- Then proceed to Federal Return Type: E-File : Direct Deposit
- Upon getting to this point, the program will prompt you on what to do on the E-File page.
The direct deposit information is entered in the Taxpayer’s Bank Account Information section. The taxpayer can divide the refund into three bank accounts, a paper check or alternatively it can be used to buy a maximum of 3 saving bonds. The total saving bonds and deposits and the total refund should be equal.
- Choose the Account type then enter the Name of the Bank.
- Select the option for Pull Refund in case the entire refund is to be deposited into this account. Only enter the amount of the refund to be deposited in this account, in the event that the refund is to be split into different accounts.
- Enter the Routing Transit Number (RTN), Account Number. You will be required to reenter the RTN and the account number so as to avoid any error. Ensure that the RTN is from a CHECK and not from a DEPOSIT SLIP. There are banks that instead of RTN, use an internal routing number in their deposit slips. In case you fail to use the correct RTN, the refund will be delayed for weeks.
- In the event that the refund is either to be partly mailed by paper check, split into different banks or part of it be used to buy savings bond, then, you will be required to enter the extra information in the Paper Check Allocation Section, the Bank Accounts section and the Purchase Savings Bonds section respectively.
Mailed/Paper Returns
To enter direct deposit information on a return filed by paper:
- Go to the Tax Return Summary Page
- Select E-File
- Then to the Federal Return Type: Paper Return with Direct Deposit
- Proceed through the steps shown to you on the E-File page.
The direct deposit information is entered in the Taxpayer’s Bank Account Information section. The taxpayer can divide the refund into three bank accounts, a paper check or alternatively it can be used to buy a maximum of 3 saving bonds. The total saving bonds and deposits and the total refund should be equal.
- Choose the Account type then enter the Name of the Bank.
- Select the option for Pull Refund in case the entire refund is to be deposited into this account. Only enter the amount of the refund to be deposited in this account, in the event that the refund is to be split into different accounts.
- Enter the Routing Transit Number (RTN), Account Number. You will be required to reenter the RTN and the account number so as to avoid any error. Ensure that the RTN is from a CHECK and not from a DEPOSIT SLIP. There are banks that instead of RTN, use an internal routing number in their deposit slips. In case you fail to use the correct RTN, the refund will be delayed for weeks.
- In the event that the refund is either to be partly mailed by paper check, split into different banks or part of it be used to buy savings bond, then, you will be required to enter the extra information in the Paper Check Allocation Section, the Bank Accounts section and the Purchase Savings Bonds section respectively.
Direct Deposit Limits
The IRS has limited the number of refunds that can be electronically filled into one financial account or a single prepaid debit card to three, to curb fraud and identity theft. All refunds after the third are instantly converted to paper refund checks then mailed to the taxpayer. A notification is sent to the taxpayer informing them that the direct deposit limit has been exceeded and as a result, they will be served with a paper refund check in the absence of any other problem with the return.
Financial accounts and prepaid/reloadable cards and debit cards are all subject to the limitation.
The limitation affects few taxpayers. It may affect those families that have the refunds of its members (parents and children) all deposited into a bank account that is for the entire family. If in this situation, a taxpayer needs to either accept paper refund checks or seek other deposit arrangements.
The limitation on the direct deposits stops criminals from easily accessing multiple refunds. It is also a means of protecting taxpayers from those preparers who deposit part of or the whole refund into their bank accounts.
Ensure that direct deposits are only made to those accounts that have the name of the taxpayer. Form 8888 cannot be used to split the refund nor can it be used to recover preparer fees. The fees cannot also be recovered by having a joint account for the preparer and the taxpayer. According to the Internal Revenue Code, such actions are punishable and can be disciplined under the Treasury Circular 230.
Additional Information: