The IRS announced that people electronically filing Form 1040-X (Amended U.S Individual Income Tax Return) will be able to select direct deposit for any resulting refund. Previously, taxpayers who filed Form 1040-X with had to wait for a paper check for any refund.
The IRS has been encouraging direct deposit whenever possible, but there has been no option for direct deposit for amended filing with worry of a lost or stolen paper check. The IRS began accepting the Form 1040-X electronically in 2020 but until now did not offer direct deposit as an option for a refund.
No matter how a taxpayer files the amended return, they can still use “Where’s My Amended Return?” (online tool to check the status). You’re expected to see the processing the direct deposit status also.
Taxpayers still have the option to submit a paper version of the Form 1040-X and receive a paper check. But, direct deposit is not available on amended returns submitted on paper.
Current processing time is more than 20 weeks for both paper and electronically filed amended returns, as processing an amended return remains a manual process even if it’s filed electronically. However, filing electronically cuts out the mail time, and including direct deposit information on an electronically submitted form provides a convenient and secure way to receive refunds faster.