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How to deposit tax refund in multiple bank accounts with ProSeries

by Intuit•1• Updated 1 week ago

This article will walk you through depositing a tax refund in more than one bank account.

You can specify additional bank accounts to deposit tax refunds by using Form 8888.

What's new for tax year 2024:

  • Purchase of savings bonds discontinued. The program allowing for your refund to be deposited into your TreasuryDirect® account to buy savings bonds, as well as the ability to buy paper bonds with your refund, has been discontinued.

Follow these steps to specify additional bank accounts for the tax refund deposit:

  1. Open the client return.
  2. Go to the Federal Information Worksheet.
  3. Click the QuickZoom for Part VIII - Refund Options.
  4. Scroll down to the Direct Deposit subsection.
  5. Complete any applicable information about the first bank account.
  6. Click the QuickZoom to Form 8888 to enter additional accounts button.
  7. Enter any information about the additional bank accounts under Part I - Direct Deposit.
    • You may enter up to 2 additional bank accounts on Form 8888.
    • All bank accounts must be from U.S. banks and in the taxpayers name.

The rules below explain how the taxpayer's direct deposit may be adjusted:

  • Math errors: The following rules apply if your refund is increased or decreased due to a math error.
    • Refund increased: If you made an error on your return and the amount of your refund is increased, the additional amount will be deposited to the last account listed. If you asked that your refund be split among three accounts, any increase will be deposited to the account on line 3. If you asked that your refund be split among two accounts, any increase will be deposited to the account on line 2.
    • Refund decreased: If you made an error on your return and the amount of your refund is decreased, the decrease will be taken first from any deposit to an account on line 3, next from the deposit to the account on line 2, and finally from the deposit to the account on line 1.
    • Note: If you appeal the math error and your appeal is upheld, the resulting refund will be deposited to the account on line 1.
  • Refund offset: The following rules apply if your refund is offset (used) to pay past-due federal tax or certain other debts.
    • Past-due federal tax. If you owe past-due federal tax and your refund is offset by the IRS to pay the tax, the past-due amount will be deducted first from any deposit to an account on line 3, next from the deposit to the account on line 2, and finally from the deposit to the account on line 1.
    • Other offsets: If you owe other past-due amounts (such as state income tax, child support, spousal support, or certain federal nontax debts, such as student loans) subject to offset by the Treasury Department's Financial Management Service (FMS), the past-due amounts will be deducted first from the deposit to the account with the lowest routing number. Any remaining amount due will be deducted from the deposit to the account with the next lowest routing number and then from the deposit to the account with the highest routing number.
  • Caution: If the deposit to one or more of your accounts is changed due to a math error or refund offset, and that account is subject to contribution limits, such as an IRA, HSA, Archer MSA, or Coverdell ESA, or the deposit was deducted as a contribution to a tax-favored account on your tax return, you may need to correct your contribution or file an amended return.
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