- Information about having your taxes deducted from your bank account.
Direct Debit When E-filing
Direct Debit is way to have the income tax that you owe taken directly out of your bank account. When you select direct debit to pay your tax, you authorize the U.S. Department of the Treasury (through a Treasury Financial Agent) to transfer the specified payment amount from your bank account to the Treasury's account.
Select a link to go directly to a topic:
- If I use direct debit, do I need to file Form 1040-V?
- How do I check the status of my direct debit transaction?
- When is my balance owed considered to be paid on time?
- How do I know that TurboTax received my direct debit request?
- When will my account be debited?
- Can I cancel my direct debit transaction?
- Can I change the amount that will be deducted from my account?
- Can I change the bank account I'm using to pay my balance due?
- What if I don't have adequate funds available on the day I've specified?
- Can I designate a specific Direct Debit date?
- What if the bank returns the payment?
No. You do not need to print and mail Form 1040-V, the federal payment voucher, if you use the direct debit method of payment. Your direct debit authorization takes the place of this paperwork.
To verify the date that funds will be withdrawn from your account, or to confirm that funds have been transferred, call one of the following numbers:
- (888) 353-4537 before May 2, 2008
- (800) 829-1040 after May 2, 2008
If you selected Direct Debit and your return was successfully e-filed by midnight on April 15, 2008, you are in compliance with IRS and state taxing authority requirements and are not subject to penalties or late fees. The actual debit to your bank account might not occur until after April 15, but it's the date of authorization that determines penalties and fees. See the When was my account debited? section of this article for more information.
You can be assured your Direct Debit was successfully processed if:
- You verified the accuracy of the bank account information you provided to TurboTax and
- You received a Successful Transmission message when you e-filed your return and
- Your return is accepted by the IRS as indicated when the status of the return is Accepted. (See Check the Status of Your E-filed Return.)
The IRS debits your account on the day your e-filed return is accepted. However, it can take the bank up to five days to complete the transaction and update your account information.
Please check with your bank or financial institution for the date of debit. We recommend that you wait five days after the e-file return is accepted before inquiring as to when the debit occurred.
Helpful information
- TurboTax can verify the status of your e-filed return but not the debit date.
- Neither TurboTax nor the IRS sends debit notifications.
- The IRS will notify you only if there are problems accessing or debiting your account.
- You will not be penalized if you authorized the Direct Debit on or before April 15, 2008. The actual debit might occur after April 15th, but it's the date of authorization that determines if there is a penalty.
Yes. You can cancel the transaction up to 48 hours (midnight, Eastern time) before the date you designated the funds to be debited. To cancel your direct debit transaction, call one of the following numbers:
- (888) 353-4537, before May 2, 2008
- (800) 829-1040, after May 2, 2008
 | Important: If you cancel the direct debit transaction, you must pay your federal taxes by mailing Form 1040-V, the federal payment voucher, and a check to the IRS by April 15, 2008. |
To print Form 1040-V:
- Go to the Forms menu and select Open a Form.
- In the list of forms, scroll to the bottom of the list, select Form 1040-V Payment Voucher, and then select Open.
- Enter all necessary information in Form 1040-V.
- Go to the File menu and select Print.
- In the Printing dialog box, select Print.
- Mail Form 1040-V with your payment to the IRS service center for your area.
No. To use direct debit, you must pay the full amount of the tax you owe to the IRS.
No. After you e-file, you can't change the bank account that will be debited. Be aware that direct debits are processed at 12:01 a.m. on the day you requested that your debit be made. Make sure your debit amount is covered by the close of business on the day before your scheduled debit.
If you don't have adequate funds available on the day you told the IRS to deduct your balance due, the transaction will be treated as if you "bounced" a check.
A few days after the transaction was supposed to occur, the IRS will send you a letter notifying you that the transaction failed due to inadequate funds. It will also tell you about your remaining payment options. Your bank may also charge you a fee, depending on its direct debit guidelines.
Yes. If you e-filed your return before April 15, 2008, TurboTax allowed you to specify the date when you wanted the direct debit to occur. When you specify a direct debit date, the actual debit occurs after your return is accepted by the IRS but not before the designated date.
 | Note: If you designate a weekend or bank holiday as the direct debit date, the bank might delay the transaction until the following business day. |
If you e-file your return after April 15, 2008, you do not have the option to designate a Direct Debit date, and your Direct Debit will be authorized on the date of e-filing.
If a payment is returned by the financial institution due to insufficient funds, incorrect account information, closed accounts, and so on, the IRS will notify you. The IRS sends a notification letter to the address on record explaining why the payment could not be processed. This letter provides alternative options for making the payment.
