Who Gets Rebate

2008-05-13 by

Today TaxMama hears from Laura in Arizona, who tells us “I did my daughter’s taxes this year through Turbo Tax. We had the AZ State refund deposited into her account and the Federal refund deposited into mine. Is that the reason that she hasn’t received her direct deposit rebate check yet? Will it be a paper check because of it?”

Hi Laura,

Actually, when you enter a bank account into the tax return, IRS doesn’t know it’s your account or your daughter’s. The IRS computers only know that this is the designated bank account to deposit tax refunds related to this specific tax return.

So, your daughter will not be getting the Stimulus Rebate at all. It will be deposited into your bank account once the rebates are issued.

Be patient. They are on their way. You should receive the rebate by next week or a few days later.
http://www.irs.gov/irs/article/0,,id=180250,00.html

And remember, you can find answers to all kinds of questions about Stimulus Rebates and other tax issues, free. Where? Where else? At TaxMama.com

[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips by e-mail, that never appear on the site. Please click on the subscribe link and join us.]

Download the MP3 (0:00min, 0MB) or listen now...

Ask TaxMama
Where taxes are fun and answers are free
www.TaxQuips.com
The number ONE free tax podcast online
IRS Stimulus Rebate FAQs
When is your rebate checking coming your way?

# | Posted in Tax Quips | Comments » (4)



All Comments RSS

  1. Lion Says:
    May 13th, 2008 at 07:36 am

    If mom’s still doing daughter’s taxes for her (and even receiving a refund) might daughter be a dependent and not qualify for a rebate?

  2. Patty Says:
    May 13th, 2008 at 05:02 pm

    If daughter was claimed as a dependent, then she would not qualify for the stimulus payment, that is correct.

    Also, as a FYI – banking institutions have the right to refuse a deposit if the names do not match (name on deposit to name on account it is being deposited to). In the future, the daughter may need to have the deposit go into an account with her own name on it.

  3. Cindy Says:
    May 22nd, 2008 at 03:42 pm

    I have been following the rule for YEARS that a Federal Direct Deposit cannot be deposited into a bank account that does not match the SOCIAL SECURITY number on the return. Am I wrong? If the IRS DID permit this, don't you think there would be about a thousand dishonest tax preparers / ERO's that would substitute their own bank account numbers to steal their client's refunds? That's the rationale I use when trying to explain to clients that they have to Direct Deposit into their OWN accounts, and not someone else's. What do you think?

  4. Patty Says:
    May 28th, 2008 at 09:58 am

    It is my understanding that the rules (or regulations) as to what type of deposit is accepted to what account is decided by each banking institution, not the IRS. I have never found anything other at IRS.gov. Majority of banks will not accept deposits where the names do not match, but some smaller banks will, especially if they know the customer or it's a dependent of their account holder. Example of a caution the IRS uses for name not matching account name – from the IRS Tax Tip 2008-20 "A word of caution — some financial institutions do not allow a joint refund to be deposited into an individual account. Check with your bank or other financial institution to make sure your direct deposit will be accepted. Also, make sure you have the correct nine-digit routing number and your account number when selecting direct deposit." This caution is specific for MFJ (so that one spouse does not file and claim the refund) but as you see, this does not say the IRS will not allow.

Google Custom Search