What Happens if You Enter the Wrong Bank Account Details on Your Tax Return?

You might seriously hold up your refund.

As a general rule, once you submit your tax return, it generally takes the IRS 21 days or less to issue your refund. But in some cases, your tax refund might take a lot longer than that to arrive.

If you make an error on your tax return, for example, that could delay your refund, because the IRS will need time to sort it out. You might also experience a delay in getting your refund if you file your tax return on paper, as opposed to using software to file it electronically. 

Meanwhile, a good way to expedite your tax refund is to sign up for direct deposit. But if you botch your checking account details and enter the wrong information on your tax return, you might set yourself up for the opposite scenario -- a refund delay.

When you get your bank account information wrong

When you sign up for direct deposit of a tax refund, you'll generally need to provide your bank account number as well as your bank's routing number. Failing to enter both pieces of information correctly could delay your refund. 

Here's how some scenarios like this might play out. Let's say you omit a number when entering your bank account details on your tax return. In that case, the IRS may not even attempt to deposit a refund into your bank account, but rather, it may just send you a check in the mail from the start. But that could cause your refund to take longer to arrive.

Similarly, you might enter the wrong bank account number, but one that's a valid number for another account. In that case, your bank might reject the refund the IRS sends when the details don't match up. In that case, the funds will generally be returned to the IRS, and once that happens, the agency can issue you a new refund by check. But again, all of that will take time, resulting in a delayed refund.

Now, what's even scarier is that you might enter a bank account number belonging to someone else, and your bank may not spot the error and allow the refund deposit to go through. In that case, you may need to work with your bank directly to recover your refund. 

But all told, a simple mistake like transposing some numbers could leave you with a big headache on your hands. So your best is to enter your banking details very carefully when signing up for direct deposit.

A second set of eyes wouldn't hurt

Maybe you're filing a tax return on your own and aren't using a tax preparer. In that case, you may want to ask a friend or roommate to read your bank account details to you as you enter them on your return, or to double-check the information you've entered before submitting your taxes. 

It's easy enough to get something wrong when you're entering several strings of numbers. But that's also a mistake that could cause you not only a refund delay, but a world of stress you'd probably rather avoid.