18000: 2023.02.01 Broadcast - Direct Deposit for 1040-X Amended Returns

Direct Deposit for 1040-X Amended Returns

Next week the IRS will begin accepting electronically filed 2022 amended returns with direct deposit information. The IRS will not allow direct deposit if an amended return is paper filed.

A Drake Tax 2022 software update is scheduled for release Monday, February 5, to allow direct deposit on 2022 amended returns e-filed on or after February 6, 2023. After the update, re-calculate returns before e-filing.

The update will enable the following changes in Drake Tax 2022 when a DD screen is present on an amended return: ​​​​​​

• The DDPMT page, found in the View/Print mode of the return, will display the 1040-X direct deposit information.
• Once a 1040-X e-file override option has been selected on the EF screen, a note will be displayed at the bottom of Form 1040-X explaining that the refund will be delivered via direct deposit.
• Direct deposit is available for e-filed amended returns only. If the taxpayer chooses to paper-file the amended return, federal direct deposit entries made on the DD (Direct Deposit/Form 8888) will be disregarded.