For those who may be unaware, by paying TT in advance of the refund, you are not charged their $40 service charge. I didn't know this until I began receiving TT's email notices advising they were going to draft my bank account since the IRS is behind in getting refunds out. By the way, I agreed to this when I signed my agreement with TT.
Sorry no ... the refund will still be sent to the third party processing bank when the IRS finally releases it and at that point the bank fees will be withheld/paid even if TT fees are paid in advance.
Yes----you are correct. If you pay your fees upfront
BEFORE YOU FILE YOUR TAX RETURN
using a credit or debit card you do NOT pay that "refund processing fee" of $40 (or $45 if you are in CA) and your refund comes directly to you from the IRS without involving a third party bank. It is MUCH better to pay upfront and avoid refund processing.Correct ... if you paid the fees BEFORE you filed then the refund is DD directly to YOUR bank. However if you choose to have the fees withheld then the refund will still go thru the processing bank even if you pay the fees before the refund is released. The IRS has instructions from you as to where to send the refund and if that is to the third party processing bank which cannot be changed or redirected after the return has been efiled and accepted for processing.