Can I Change Where My Tax Refund Goes? Here’s What to Know

Getting a tax refund can be a relief, but ensuring it goes to the right place is crucial. If you’ve switched banks, closed an account, or want to split your refund between multiple accounts, you may be able to update where your money is sent.

Understanding when and how you can change your refund destination depends on whether you’ve already filed your return and what method you originally chose for receiving the funds.

Reviewing Your Current Bank Details

Before expecting a tax refund, verifying that your bank account details are accurate can prevent delays or misdirected funds. Even a single incorrect digit in an account or routing number can result in the deposit being rejected or sent to the wrong recipient. Banks do not always cross-check names with account numbers, meaning an error could create complications requiring additional steps to resolve.

If an account has been closed or is inactive, the bank will typically return the deposit to the IRS, which may then issue a paper check. This process can take weeks. Some banks may initially accept the deposit and later reject it, adding further uncertainty.

If you have multiple accounts, deciding where to deposit the refund can make a difference. Some prefer a high-yield savings account to earn interest, while others opt for a checking account for immediate access. Certain banks offer incentives for direct deposits, such as cash bonuses or waived fees.

Updating Direct Deposit on Your Return

When filing your tax return, entering the correct direct deposit details ensures your refund arrives without issues. The IRS allows taxpayers to split their refund into up to three accounts using Form 8888. Each account must be in your name, and the total allocation must match the full refund amount, or the IRS may issue a paper check instead.

The IRS does not verify account ownership before processing a deposit, so incorrect details could result in the refund going to an unintended recipient. If the routing or account number does not match an active account, the deposit will usually be rejected and returned. However, if the incorrect information corresponds to an existing account, retrieving the money may require working directly with the bank, which is not always successful.

Tax software and professional preparers typically provide a confirmation step before submission, allowing you to double-check deposit details. Some platforms highlight potential errors, such as mismatched routing numbers. If using a tax preparer, ensure they have your most recent banking information, as outdated details from a prior year’s return could be carried over by mistake.

Changing Information After Filing

Once a tax return has been submitted, changing where a refund is sent becomes difficult. The IRS processes returns quickly, especially those filed electronically, meaning refund instructions are often locked in within hours or days.

If the return has not yet been processed, there may be a small window to make changes. The IRS Where’s My Refund? tool can indicate whether the refund is still pending. If it has not been approved, calling the IRS at 1-800-829-1040 may allow for an update, though success is not guaranteed. Representatives can sometimes halt processing if the deposit has not been initiated, but once the refund is scheduled or sent, no further modifications can be made.

If the funds are deposited into the wrong account, recovery depends on the bank’s policies. Banks are not required to return an erroneously deposited refund unless the account holder agrees. If the funds have already been withdrawn, legal action may be necessary. Filing Form 3911, Taxpayer Statement Regarding Refund, may help initiate an IRS investigation, but resolution times vary.

Considering Alternate Refund Delivery Methods

For those who prefer not to use direct deposit, other refund delivery options exist. One alternative is receiving a paper check by mail, which may be useful for those without a bank account. However, mailed refunds take longer to process and can be delayed by the U.S. Postal Service. If a check does not arrive within 28 days of the issue date, the IRS allows taxpayers to request a replacement.

Another option is having the refund loaded onto a prepaid debit card. The IRS does not issue these directly, but many tax preparation services, such as H&R Block and TurboTax, offer them as part of their refund disbursement services. These cards provide immediate access to funds without a traditional bank account but often come with fees for ATM withdrawals or inactivity. Reviewing the card’s terms before selecting this option can help avoid unexpected costs.

Communicating With the Tax Authority

If an issue arises with your tax refund or you need to make changes after filing, contacting the IRS or your state tax agency is the next step. Response times vary depending on the time of year and the complexity of the request.

Calling the IRS is often the fastest way to address refund concerns, though wait times can be long, especially during peak tax season. When speaking with a representative, having your Social Security number, filing status, and exact refund amount can help verify your identity and speed up the process. If a refund has been delayed or misdirected, the IRS may request additional documentation, such as Form 3911, to initiate an investigation.

For state refunds, contacting the relevant state tax department is necessary, as each state has its own policies. Many states offer online refund tracking tools similar to the IRS’s Where’s My Refund? system.

If a refund has been sent to the wrong account and the bank refuses to return the funds, the IRS has limited ability to intervene. If fraud or identity theft is suspected, filing an Identity Theft Affidavit (Form 14039) may be necessary. For those who experience repeated refund issues, setting up an IRS Identity Protection PIN (IP PIN) can add an extra layer of security.