Encountering errors while preparing tax returns can be frustrating. This article addresses a common issue encountered in TaxWise when filing Illinois state income tax returns: Error IL 23, which arises when a direct deposit or direct debit is selected, but the return indicates the account is located outside the U.S.
Understanding the Error
The error message "On page 2 of the Illinois return, direct deposit or direct debit has been selected. The question, "For direct deposit or direct debit, is the account located outside the U.S.?", must be answered "No". Direct deposit and direct debit are not allowed if the account is located outside the U.S. (IL 23)" clearly indicates the problem. The Illinois Department of Revenue does not allow direct deposit or direct debit of refunds or payments to bank accounts located outside of the United States.
The Solution: Correcting the Account Location
The solution is straightforward:
Navigate to the Direct Deposit/Debit Section: Within TaxWise, access the section of the Illinois state income tax return (Form IL-1040) where direct deposit or direct debit information is entered. This is typically on page 2 of the form.
Locate the Account Location Question: Find the question that asks, "For direct deposit or direct debit, is the account located outside the U.S.?"
Ensure "No" is Selected: Verify that the answer to this question is "No." If it is currently set to "Yes," change it to "No."
Important Considerations:
U.S. Account Required: To use direct deposit or direct debit, you must provide information for a bank account located within the United States. This includes banks, credit unions, and other financial institutions with a U.S. presence.
Review Bank Details: Double-check the accuracy of the routing number and account number entered for the direct deposit or direct debit. Incorrect information can lead to delays or rejection of the refund/payment.
Alternative Payment/Refund Options: If you do not have a U.S. bank account, or prefer not to use direct deposit/debit, you'll need to choose an alternative method for receiving your refund or making your payment. Common options include receiving a paper check by mail or paying via mail with a check or money order.