Tax Refund Deposited Into the Wrong Account? Here’s What to Do

There are several reasons your tax refund might get routed to the wrong savings or checking account. Let’s take a look.

Incorrect information 

1. Wrong account number on tax return

It’s easy to make a mistake when filling out important documents such as your tax return – there are so many forms! If you accidentally provide the government with the wrong bank account number when filing your taxes, your money could be delayed or even deposited into someone else’s account.

There are ways to fix the issue, but double-checking your account number is correct from the start will help avoid unwanted stress later on. If you’re paying someone to do your taxes for you, double-check to ensure they have your correct account number.

2. Wrong routing number on tax return

The same goes for your bank’s routing number when filling out your tax documents. Your routing number is just as important as your account number since it tells the IRS where to send your funds.

Messing up a single digit could derail how fast you receive your tax refund. Double-check the routing number for your bank when filling out your information.

Information Overload: Filing taxes means inputting a lot of information. In addition to your bank account and routing numbers, ensure you have correctly entered your address and Social Security number, have only claimed tax deductions for which you qualify, and have chosen the right tax bracket.

Identity theft

In other instances, a tax refund deposited into the wrong account can be the result of something more serious. For example, a common method of tax identity theft involves criminals getting the jump on taxpayers and filing a fraudulent return using their Social Security number or tax identification number.

According to the Federal Trade Commission (FTC) Consumer Sentinel Network, there were 66,477 reports of tax-related fraud in the first three quarters of 2022, with a spike during the second quarter, when taxes were due.³

Suppose another person fraudulently files a tax return on your behalf. In that case, the IRS will accept the return in good faith and issue the refund to the person who filed the return – meaning they’ll deposit the money in the fraudster’s bank account, not yours.

Typically, a bank will reject a direct deposit that doesn’t match the name on the account. In that case, the bank should send the money back to the IRS, in which case you’ll receive your refund in the form of a paper check.

To protect yourself from identity theft and fraudulent activity during tax season: 

• Keep your online information secure
• Take care not to file your taxes late
• Keep all your physical and electronic documents for your records
• Educate yourself about common money scams
• Choose a reliable and trustworthy tax preparer

To learn more about identity theft and tax refunds, check out the IRS’s Taxpayer Guide to Identity Theft.