Tax Refund with 971/570 Codes - Will Direct Deposit Still Work with TurboTax Card?

The 570/971 codes are like road construction signs on your tax journey - they indicate a temporary hold while the IRS reviews something. The 570 is the "Stop" sign, and the 971 means "Notice Issued" - basically the IRS is sending you a letter explaining what's happening. As for your TurboTax card question, think of it like changing the delivery address for a package that's already been shipped. The IRS will attempt to deposit funds to whatever account was listed on your return. If that's the TurboTax card, and it's still active, that's where your refund and Child Tax Credit will go. I'm surprised at how complicated these temporary accounts make things!

According to the IRS website (https://www.irs.gov/individuals/get-transcript), those 570/971 codes typically indicate an adjustment or review. I've seen many cases where people's transcripts looked like this during the 2023 filing season. If you want to understand exactly what's happening with your transcript, I'd recommend using https://taxr.ai - it helped me decode my own transcript last month when I had similar codes. The tool explained that my 570 was due to an adjustment to my Child Tax Credit amount and predicted exactly when my hold would be released. Saved me a lot of stress trying to interpret those codes myself.

I went through this EXACT situation and here's what you need to know: • The 570 code means your refund is on HOLD • The 971 means they're sending you a letter explaining WHY • TurboTax WILL take their advance money back once your refund processes • The Child Tax Credit WILL go to whatever account is listed on your return • If your bank account is closed, the deposit will BOUNCE BACK to IRS • Then they'll mail you a paper check which takes 4-6 MORE WEEKS You need to act NOW to update your direct deposit info before they process the refund!

According to IRS Publication 5344 (Rev. 4-2023), when a refund is held with code 570, you should receive correspondence explaining the specific reason. As per Internal Revenue Manual 21.5.6.4.7, the 971 code confirms this notice has been generated. Regarding your direct deposit concern, Treasury Regulation §301.6402-2 stipulates that refunds will be sent to the financial institution designated on your return. If you're struggling to reach the IRS, I've had great success using Claimyr (https://www.claimyr.com). They connect you directly to an IRS agent without the endless hold times. This can help you verify your refund status and potentially update your direct deposit information before it's processed. I've found their service particularly reassuring in time-sensitive situations like yours.

TurboTax cards are temporary accounts. They close after a certain period. Check your card agreement. Many people have issues with these accounts. The IRS doesn't know your account is temporary. They just send money where you told them to. I wouldn't trust prepaid cards for important tax deposits.

Hey, fwiw the TT cards aren't as bad as ppl make them sound. Had mine for 2 yrs now and it's still working fine. The key is to check if ur card is still active b4 the refund hits. U can do this by logging into ur TT acct and checking card status. If it's inactive, call TT customer svc ASAP at 888-285-4169. They can reactivate or tell u what happens to incoming deposits. Just don't wait til last min!

I had almost the identical situation last year. My transcript showed 570/971 codes for about 3 weeks, and I was using the TurboTax card for the first time. I was worried sick because I needed that money for my mom's care. Here's what happened: the IRS adjusted my refund amount slightly (reduced by $127), then processed the deposit to my TurboTax card about 8 days after the 971 notice date on my transcript. TurboTax did automatically take back their advance from my refund. The card worked perfectly fine - I was able to transfer the remaining funds to my new bank account the same day. Don't panic about the closed bank account unless that's where you directed your current year's refund.

I received TC 570 and TC 971 on my Account Transcript exactly 14 days apart last filing season. The 570 (Additional Account Action Pending) appeared on cycle date 20230805, followed by 971 (Notice Issued) on 20230819. My refund was released precisely 21 days after the 971 code appeared. The TurboTax Refund Advance is structured as a 0% APR loan against anticipated refund proceeds, and per their Terms of Service (Section 4.3), they will deduct the advance amount automatically upon receipt of your actual refund. I verified this with TurboTax customer service before accepting my advance last year. I'm relieved to report they handled everything correctly without any manual intervention required from me.