Direct Deposit

Important: Incorrect banking information will delay your refund. Therefore, please verify that your bank account number and bank routing transit number (RTN) are correct before submitting your return.

“Due to changes in the electronic banking rules, North Carolina Department of Revenue will no longer allow direct deposits to go through or to foreign financial institutions. If you use a foreign financial institution you will be issued a paper check”.

Direct deposit is available for individual income tax returns that are E-filed by an approved tax preparer or an approved on-line service provider. Direct deposit will only be available for the original refund and is not available to taxpayers filing a paper return.

The E-file program does not allow RALs (Refund Anticipation Loan) on the North Carolina State refund.

Direct deposit refunds are electronically transferred to a taxpayer’s financial institution into their checking or savings account. A financial institution for the purposes of direct deposit of tax refunds is defined as a state or national bank, credit union, savings and loan association or mutual savings bank within the United States. Refunds may not be deposited into a credit card account.

A check will be issued to the taxpayer if the refund cannot be direct deposited into the taxpayer’s account based upon the information provided, rejection by the financial institution or at the discretion of the Department of Revenue based upon a review of the tax return. Checks will be made payable to all taxpayers stated on the return and will be mailed to the address stated on the return.

Some financial institutions do not permit the deposit of a joint refund into an individual account. At the discretion of the financial institution, the North Carolina Department of Revenue is not responsible if a direct deposit is rejected for this reason. Check or share draft accounts that are “payable through” another institution may not accept direct deposits. Taxpayers should verify with their financial institution’s policy on direct deposit before filing.

Frequently Asked Questions

Can the State refund and the federal refund be deposited into a different
account?
Yes, the State refund can be deposited into a different account than the federal
refund. A taxpayer may elect to have the State refund direct deposited even
though the federal return may be a tax due or vice versa. The federal and state
refunds can be deposited into the same account (checking or savings).

Will a notice be sent to the ERO or to the taxpayer on the status of the direct
deposit?
No, a notice will not be sent to the ERO or to the taxpayer to confirm that the
refund was deposited into an account. Also, the Department cannot guarantee a
specific date that a refund will be deposited. Taxpayers may check the status of
their refund by calling toll-free at 1-877-252-4052.

Can a refund be deposited into more than one account?
No, a refund can only be deposited into one account.

When can a taxpayer expect to receive his/her direct deposit?
By electing the direct deposit method, most taxpayers can expect to receive their
refund quicker than if they requested a check.

Can the same bank account be used more than once?
There are no limitations on the number of deposits that can be made to one bank account. However, the Department reserves the right to issue a check in the event of an erroneous account or routing transit number, closed accounts, bank mergers, or for any other reason at the discretion of the Department.

Is there a fee to direct deposit?
There is no fee to direct deposit your State refund.

Last modified on: 01/24/13 12:59:34 PM .