Debit Savings account
When filing my federal and state returns on 4/13 and choosing direct debit from savings to pay what was owed, neither before nor after receiving the standard 'Congratulations', was any information of any kind provided by FreeTaxUSA, that some banks do not allow direct debit from a savings account.
Consequently I was not informed that my returns were not really accepted until the state notified me about 10 days later that the return NOT accepted. To make it even more onerous, FreeTaxUSA provided no way to change the debit to a checking account without submitting an amended return - with no changes - solely to debit checking. AND AGAIN paying over $16 to file online - solely to debit my bank account.
At a minimum FreeTaxUSA should make their direct debit information less opaque. Even better the instructions should advise to check with the bank before trying to debit savings and should provide a way to debit a changed tax payment without submitting amended returns.
Answers
-
Hi BobDunn66, I'm so sorry for the trouble you had getting your payment processed. I hope I can help to clarify things.
When we inform you that your tax return was accepted, that means you've passed some initial security checks, and the IRS and state agree to receive your return via e-file and start processing it. It doesn't mean they have verified the accuracy of your return yet or approved all the information included with your return. It also doesn't mean your tax payment has been approved/processed. Rather, the IRS and your state are simply acknowledging receipt of your tax return and payment information.
Direct debit is usually the safest and simplest method to pay your taxes. With direct debit, we transmit your payment information to the IRS and your state, who then process the payment. We don't receive any updates from the IRS or the state, so we're not aware of the final status of your payment.
We generally rely on the user to provide valid account information for a direct debit payment. Occasionally a payment won't be successfully processed by the IRS or state. This can happen for various reasons, including a typo in the account information, insufficient funds, or a closed account. This is why we advise (on the last screen after filing) that you make sure your direct debit goes through as scheduled.
It's helpful to know that some banks don't allow direct debit from a savings account. That could be useful information to include on the payment screens. I will pass this on to our development team for consideration as we update our software for 2025. We are always looking for ways to improve and appreciate your feedback.
In the meantime, I'm glad to hear that the state notified you of the unsuccessful tax payment so you could get that remedied. I'm sorry we weren't able to help you correct your direct debit information. This is done according to the IRS guidelines, which don't allow changes to that information once a tax return has been submitted for processing.
Amended returns typically aren't recommended for changing bank account information. Rather, they are used to report changes in the calculations on your tax return. If you need to submit new payment information to the IRS or state after a declined payment, the best way to handle that would generally be to go directly to the IRS and/or state website to make a payment. For example, here's a link to the IRS website where you can make a payment by direct debit without needing to file an amendment:
It sounds like you were able to file an amended return and include the correct bank account information for your tax payment. I hope that gets processed successfully! If you run into an issue like this again in the future, please reach out to customer support for assistance. They can often direct you regarding the best way to proceed.
0
