As tax season approaches in 2026, the Internal Revenue Service (IRS) is continuing its transition to electronic payments for tax refunds, with direct deposit now the default method for disbursing funds. This system is faster, more secure, and cost-effective for the IRS.
However, taxpayers must ensure their bank information is correct to avoid delays, mistakes, and the potential need for a paper check.
Given the shift toward digital payments, getting your bank details right is critical. A simple mistake, such as an incorrect account number or routing number, can result in delayed refunds or the rejection of direct deposit altogether. Here’s what taxpayers need to know to make sure their direct deposit information is accurate when filing their tax returns.
How Direct Deposit for IRS Payments Works
Direct deposit is a method by which the IRS electronically transfers your tax refund into a bank account, such as a checking or savings account. For those who choose this option, the IRS deposits the refund directly into the account you designate on your tax return.
Key Advantages of Direct Deposit
- Speed: Direct deposits are faster than paper checks, and refunds typically arrive within 21 days of filing.
- Security: Unlike mailed checks, direct deposit eliminates the risk of lost or stolen refunds.
- Convenience: Funds are deposited automatically into your bank account, saving you a trip to the bank.
To set up direct deposit, taxpayers must provide specific details to the IRS during tax filing. This includes the bank routing number, account number, and the type of account (checking or savings).
Guide to Ensuring Your Bank Info is Correct
1. Understand the Information You Need to Provide
Before filing your tax return, make sure you understand the bank details required for direct deposit:
- Routing Number: A nine-digit number that identifies your financial institution. This number can be found on the bottom of your checks or through your bank’s online system.
- Account Number: Your unique bank account identifier, usually found next to the routing number on your checks or via online banking.
- Account Type: Indicate whether the deposit is being made to a checking or savings account.
For example, when using a check, the routing number will be at the bottom left, followed by your account number. Make sure both numbers are accurate to avoid issues with the transfer.
If you are using an online bank or prepaid debit card, check with your provider to ensure the account is eligible to receive direct deposits.
2. Double-Check Your Numbers
Errors in your bank details are the leading cause of problems with direct deposit. A minor mistake in your routing or account number can prevent the IRS from depositing your refund, leading to delays or the return of the payment. Before submitting your tax return, double-check the information you enter.
Tax software often includes a built-in feature to help verify that the numbers are correct, but the final responsibility lies with the taxpayer. Ensure your account information matches exactly what your bank provides. If you are unsure, contact your bank or review your online banking portal for the correct numbers.
Common Mistakes and How They Impact Your Refund
1. Typos in Routing or Account Numbers
A small error in your routing number (e.g., one incorrect digit) can cause your direct deposit to fail. The IRS will attempt the deposit again, but if the information is still incorrect, your refund will be issued by check, which can delay processing by several weeks.
What You Should Do:
- Always use official documentation or your bank’s online system to find your routing and account numbers.
- Review the numbers carefully before submitting them with your tax return.
2. Wrong Account Type
If you accidentally select savings instead of checking or vice versa, the IRS may not be able to process the deposit correctly. The IRS does not automatically re-route payments, and if the account type doesn’t match, the payment will be rejected.
What You Should Do:
- Confirm the account type before submitting your return. If you’re unsure, check with your bank.
3. Using an Inactive or Closed Account
If you’ve closed your bank account or changed banks since the last time you filed taxes, the IRS will attempt to deposit your refund into the wrong account. If the account is inactive or closed, the deposit will be rejected, and you may have to wait weeks for a paper check.
What You Should Do:
- If you’ve changed accounts, update your bank details in your tax return and verify that the new account can accept direct deposits.
- Use the IRS tool “Where’s My Refund?” to track your refund and verify that it was successfully deposited.
What to Do if Your Refund is Rejected or Delayed
In the case of an incorrect direct deposit, the IRS will send a CP53E notice. This notice informs you that the refund could not be processed due to an issue with your bank account information. You typically have 30 days to update the information on your IRS Online Account.
If you fail to update the information within the required timeframe, the IRS will issue your refund by check. This process could take up to six weeks or longer.
What You Should Do:
- Act quickly to update your bank account information using your IRS Online Account.
- If your refund was sent by paper check, wait for it to arrive by mail.
IRS Tools for Verifying Your Refund Status
The IRS “Where’s My Refund?” tool provides the most up-to-date information about the status of your refund, including whether it was successfully deposited or if there were any issues with your direct deposit information.
You can also use your IRS Online Account to:
- View your refund status
- Update your bank information if required
- Check if a CP53E notice has been issued.
What You Should Do:
- Regularly check the IRS portal for updates, especially during tax season when delays are common.
Example: Entering Bank Info on IRS Form 1040
When filing your taxes via Form 1040, the bank details section for direct deposit is relatively simple. Here’s an example of how to correctly fill out this section:
- Line 21a: Enter your routing number (ensure it’s nine digits).
- Line 21b: Enter your account number (check carefully for any errors).
- Line 21c: Indicate whether the account is a checking or savings account.
If you’re filing electronically, tax software like TurboTax or H&R Block will prompt you to enter these details. It’s important to double-check each field before submission.
Using Tax Software and Professional Help
Tax software can help ensure that the information entered for direct deposit is correct. Many tax platforms have features that validate account numbers and alert users if there’s a mistake. If you use a tax preparer, ensure they double-check this information before submitting the return to the IRS.
Tips for Using Online Banking for Direct Deposit
If you’re using an online-only bank, or a mobile banking service, confirm with the provider that they accept IRS direct deposits. Many newer, digital-first banks, like Chime, Varo, and others, offer routing and account numbers for tax refund deposits.
Before filing, check with your online bank’s customer support to ensure their accounts can process IRS refunds and ask for their routing and account numbers. This step helps avoid potential issues when the IRS attempts the deposit.
Related Links
IRS 2026 Filing Rules – What’s New This Year and How Refund Processing Is Changing
IRS Refund Delays 2026 – Top Reasons Your Tax Refund May Take Longer
The Future of Direct Deposit in Tax Filing
As the IRS continues to phase out paper checks, direct deposit will remain the preferred method for tax refunds. Expect further efforts to encourage electronic payments, with additional tools to simplify the filing and refund process.
In the future, the IRS may introduce enhanced features, such as faster processing times and expanded eligibility for receiving refunds via direct deposit.
Why Accuracy Is Key for Direct Deposit IRS Payments
As the IRS continues to prioritize electronic payments, ensuring that your bank account information is accurate is crucial for receiving timely refunds. Errors, even minor ones, can lead to significant delays and frustration, but following the steps outlined in this article can help you avoid common pitfalls and ensure that your refund arrives securely.
By carefully verifying your bank details, using available IRS tools, and remaining proactive about updates, taxpayers can enjoy a smooth, efficient refund process.
