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Common questions for direct deposit or electronic payment in Lacerte

SOLVED•by Intuit•145•Updated 1 year ago

Get answers to frequently asked questions about setting up direct deposit or electronic payments in Lacerte.

How do I setup direct deposit or electronic funds withdrawal for individual returns (1040/1040-X)

New for tax year 2022, e-filed 1040-X returns can receive a refund by direct deposit. Paper filed amendments will still be issued refund checks by mail.

To setup direct deposit:

  1. Go to Screen 3, Miscellaneous Information/Direct Deposit.
  2. From the left Sections, choose Direct Deposit of Refund/Electronic Payment.
  3. Check the box, Direct deposit of federal refund.
  4. If the banking information was entered in a prior year review the banking information and check the Bank account information verified box.
  5. If you need to enter new banking information scroll down to Financial Institution #1 and enter the fields that apply.

If the type of account selected is IRA, the program will limit the amount deposited to the IRA limits. If more than one IRA account is selected, then the total is limited to the IRA limits. The limitation is computed per person and can be computed using this year's or next year's IRA limits.

To generate Form 8888:

To generate Form 8888, you can use one of the following methods:

  • For a refund deposited to multiple accounts - Enter information on Screen 3, Miscellaneous Info./Direct Deposit, under the Allocation of Refund to Direct Deposit (8888) section, in the Financial Institution #2 subsection.
  • To purchase savings bonds - Enter information on Screen 3, Miscellaneous Info./Direct Deposit, under the Allocation of Refund to Savings Bond Purchases (8888) section.

To setup electronic funds withdrawal:

  1. Go to Screen 3, Miscellaneous Information/Direct Deposit.
  2. From the left Sections, choose Direct Deposit of Refund/Electronic Payment.
  3. Under Electronic Filing Only - Main Form check the Electronic payment of balance due checkbox.
  4. If the return is e-filed on or before the due date the payment date will automatically be the due date of the tax return. If the taxpayer wants to pay before the due date use the Electronic payment date [O] field to enter a custom date. If the return is e-filed after the due date of the tax return the transmission date is used.
  5. If the banking information was entered in a prior year review the banking information and check the Bank account information verified box.
  6. If you need to enter new banking information scroll down to Financial Institution #1 and enter the fields that apply.
  7. Review the e-file payment record to verify all the payment information is correct.

By default, the full balance due will be transmitted for the electronic funds withdrawal. See below if you need to set up a partial payment.

Setting up a partial payment amount:

  1. Go to Screen 3, Miscellaneous Information/Direct Deposit.
  2. In the Miscellaneous section enter the payment amount in Form 1040 payment (defaults to amount due) [O]. 

To setup direct deposit:

  1. Go to Screen 4.1, Miscellaneous /Other Information.
  2. From the left Sections, choose Direct Deposit of Refund (8050)/Electronic Payment.
  3. Check the box, Direct deposit of refund.
  4. If the banking information was entered in a prior year review the banking information and check the Bank account information verified box.
  5. If you need to enter new banking information enter the fields that apply in the Bank Information section.

To setup electronic funds withdrawal:

  1. Go to Screen 4.1, Miscellaneous /Other Information.
  2. From the left Sections, choose Direct Deposit of Refund (8050)/Electronic Payment.
  3. Under Electronic Filing Only - Main Form check the Electronic payment of balance due checkbox.
  4. If the return is e-filed on or before the due date the payment date will automatically be the due date of the tax return. If the company wants to pay before the due date use the Electronic payment date [O] field to enter a custom date. If the return is e-filed after the due date of the tax return the transmission date is used.
  5. If the banking information was entered in a prior year review the banking information and check the Bank account information verified box.
  6. If you need to enter new banking information enter the fields that apply in the Bank Information section.
  7. Go to the Check Return tab.
  8. On the left side select Forms then e-file Payment Record.
  9. Review the record to verify all the payment information is correct.

To setup direct deposit:

  1. Go to Screen 3.1, Misc. Info. /Other Info.
  2. From the left Sections, choose Direct Deposit of Refund (8050)/Electronic Payment.
  3. Check the box, Direct deposit of refund.
  4. If the banking information was entered in a prior year review the banking information and check the Bank account information verified box.
  5. If you need to enter new banking information enter the fields that apply in the Bank Information section.

To setup electronic funds withdrawal:

  1. Go to Screen 3.1, Misc. Info. /Other Info.
  2. From the left Sections, choose Direct Deposit of Refund (8050)/Electronic Payment.
  3. Under Electronic Filing Only - Main Form check the Electronic payment of balance due checkbox.
  4. If the return is e-filed on or before the due date the payment date will automatically be the due date of the tax return. If the company wants to pay before the due date use the Electronic payment date [O] field to enter a custom date. If the return is e-filed after the due date of the tax return the transmission date is used.
  5. If the banking information was entered in a prior year review the banking information and check the Bank account information verified box.
  6. If you need to enter new banking information enter the fields that apply in the Bank Information section.
  7. Go to the Check Return tab.
  8. On the left side select Forms then e-file Payment Record.
  9. Review the record to verify all the payment information is correct.

To set a paper return for direct deposit:

  1. Go to Screen 3, Miscellaneous Information/Direct Deposit.
  2. From the left Sections, choose Direct Deposit of Refund/Electronic Payment.
  3. Check the box, Direct deposit of federal refund.
  4. If the banking information was entered in a prior year review the banking information and check the Bank account information verified box.
  5. If you need to enter new banking information scroll down to Financial Institution #1 and enter the fields that apply.
  6. When printing the Government filing copy of the return the banking informaiton will show on the 1040 line 35b.

If you have multiple clients that use the same bank you can setup a bank information list to save data entry for the routing numbers. Once setup simply open the list and select the appropriate bank for the client. This can be done in each module.

  1. From the Settings menu choose Table Editor. 
  2. From the Contents on the left click the + next to Miscellaneous Info./ Direct Deposit. 
  3. Click on Bank Name.
  4. Use the Add and Delete buttons at the bottom of the screen to add or delete banks.
  6. Click OK.

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