Waiting for your refund? For some taxpayers, it’s about to get a lot faster. The IRS has announced that taxpayers who file their amended returns (Form 1040-X) will now be able to electronically select direct deposit for their refund.
Electronically Filed Amended Returns
For years, filing an amended return has been a slow process. Paper filing of amended returns was required until 2020, when the IRS Announced that 2019 Forms 1040 and 1040-SR returns could be modified electronically. The program expanded againallowing taxpayers to electronically file amended returns for Form 1040-NR, Form 1040-SS, Form 1040-PR, as well as Forms 1040 and 1040-SR.
Now the IRS is implementing another option: direct deposit.
Even though the IRS had allowed taxpayers to file certain tax returns electronically, taxpayers still had to wait for a paper check for any refund. IRS processing delays and mail delays added to the long list of frustrations for taxpayers filing amended returns. Now, anyone who electronically files Form 1040-X can opt for direct deposit to receive their refund more quickly.
Of course, “faster” is relative as processing times are still long. The IRS has indicated that the current processing time is over 20 weeks for paper and electronically filed amended returns. If that has you baffled, it’s because the IRS still processes amended returns manually, even if those returns are filed electronically. Still, filing electronically can get your return delivered to the IRS more quickly than filing on paper, and direct deposit should speed things up once the refund is available.
“This is a huge victory for taxpayers and another milestone as we transform the IRS to improve taxpayer experiences,” said Acting IRS Commissioner Doug O’Donnell. “This important update will reduce refund time and reduce inconvenience for people filing amended returns. Whenever possible, we recommend direct deposit. Getting tax refunds into the hands of taxpayers quickly without worrying about loss or stealing a paper check makes sense.
Of course, just because you can e-file an amended return doesn’t mean you have to: You can file a paper version of Form 1040-X and receive a paper check if you prefer. But keep in mind that direct deposit is not available for amended paper returns.
No matter how you file your amended return, electronically or on paper, you can check the status using the Where is my amended return? on the IRS website. You can learn more about your tax refund and how to check the status of your refund here.
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