Recently, the IRS added on a new feature that will allow taxpayers who electronically filed amended returns to receive their refund through direct deposit. Typically, taxpayers who electronically filed amended returns had to wait for a paper check, but not anymore. The IRS is working to ensure that tax filing is an easy experience for everyone involved.
Which tax form do I use to file amended returns?
If you need to file an amended return, you’ll need to use Form 1040-X. This amended return form is used to make changes or correct errors on a previously filed tax return. It can be used for any of the three most recent tax years, and it can be filed on paper or electronically. When you’re ready to file, you’ll need to attach a copy of your original tax return, as well as any other forms or schedules that were affected by the changes. Be sure to fill out all necessary fields and sign the form. Keep in mind that any changes made on your amended return could impact other forms or schedules that you have already filed for that tax year, so be sure to review them carefully. If you have any questions about filing an amended return, contact a qualified tax preparer for assistance.
Why did the IRS decide to add this new feature for electronically filed amended returns?
According to the IRS, taxpayers file a total of approximately 3 million amended returns each year. With that being said, the IRS makes it their mission to improve all of the taxpayers’ experience in any way that they can. IRS Acting Commissioner Doug O’Donnell says that “This important update will cut refund time and reduce inconvenience for people who file amended returns. We always encourage direct deposit whenever possible. Getting tax refunds into taxpayers’ hands quickly without worry of a lost or stolen paper check just makes sense.”
What else should I know about the new feature?
The IRS’ new direct deposit feature for electronically filed amended returns is optional. If you would like to, you can still submit a paper version of the Form 1040-X and you will receive a paper check. It is important to note that direct deposit will not be available on amended returns that were submitted on paper. Whether you submit your Form 1040-X on paper or electronically, you can check the status through the IRS’ online tool “Where’s My Amended Return?”
How do I set up the direct deposit?
As mentioned by IRS Acting Commissioner Doug O’Donnell, setting up to receive a direct deposit is the fastest way to get your money. Setting up the direct deposit is easy and can be done right on the e-filing website. All you need is the routing and account number of your bank account. Once the IRS has processed your filing, they will deposit your refund directly into your account. Direct deposit is secure and reliable, so you can rest assured that your tax refund will be deposited into the right account with no issues.
How long will it take to receive my direct deposit?
Currently, the processing time for both paper and electronically filed amended returns is more than 20 weeks. Even if you decide to file the amended returns electronically, the IRS still processes them manually. Although, one great benefit of electronically filing is that it shortens the time it would take to mail it. Additionally, you are more than likely to receive your refund faster and safer if you choose the direct deposit option. Remember to make sure that all of your information is correct on the amended return to ensure that there are no further issues.
With the taxpayers’ needs in mind, the IRS continues to think of new ideas that are convenient for everyone. Now that they’ve added the new feature for electronically filed amended returns, you no longer have to worry about the secureness of your refund in the mail. Also, remember that if you prefer to do everything by paper, you still have that option. For more information regarding features the IRS has recently added, check out our article on the free filing portal!