WASHINGTON — After a mixup with customer's second relief payments, TurboTax released a statement early Friday morning saying their money is finally on the way.
The tax preparation service said the checks will start being deposited into the customer's bank account, where they received their 2019 tax refund, starting Friday, Jan. 8.
"We have been working tirelessly with the Treasury and IRS to get your stimulus payments to you," TurboTax said in an email to customers. "We know how important these funds are for so many Americans and we regret that an IRS error caused a delay in you receiving your stimulus payment."
The IRS and the Treasury Department began issuing the Economic Impact Payments last week. The payment is $600 for each eligible adult and dependent for people earning up to $75,000, or $150,000 for married couples filing jointly. Those earning more than that are eligible for a reduced payment.
The IRS said that direct deposit payments would take several days to post to individual accounts but funds were largely available last Monday. Some payments are also being sent via paper check or debit cards during the month of January.
Many Americans who used a tax preparation service, like TurboTax, ran into problems when they saw their stimulus checks were deposited into an account they didn't recognize.
Samantha Smith of Dallas said she received her $1,200 relief payment in the spring via direct deposit without any issues. But her payment for this round of economic relief went to an account she did not recognize.
She contacted TurboTax, which prepared her most recent tax filing, and was told if she paid her tax preparation fees with her refund due, rather than paying for it upfront, then the second payment may have been sent to a TurboTax bank.
TurboTax in its statement Friday reassured customers that their checks should be available on Jan. 8, or a few business days later depending on how long the banks process it.
For most Americans, the IRS has said that there is no action required by eligible individuals to receive this second payment. The payments are automatic, and people should not contact their financial institutions or the IRS with payment timing questions.