If you choose to pay your TurboTax fees out of your Federal refund, the tax refund deposit you receive in your bank account (or card) should have the fees already subtracted, unless there is a problem that I describe in a paragraph below. You cannot pay fees out of any state refund.
When you choose to pay any TurboTax fees out of your Federal refund, you agree for a third-party company to set up a temporary bank account in your name to receive your funds. When the IRS releases your funds, the IRS sends the refund to the temporary account at the intermediary bank where the fees are subtracted. Then that intermediary bank sends the rest of your funds to your bank account (or card) in a second direct deposit. The company that handles that is called SBTPG (Santa Barbara Tax Products Group.)
If your refund is delayed at the IRS for an unusually long time, or if the IRS reduces your refund such that it is no longer enough to cover the fees, TurboTax would then send you emails asking for payment. If not paid, they ultimately notify you that they are about to debit your bank account, and then do so if not paid.
There is a $40 service fee if you choose that payment method ($45 for California filers where it is bundled with "Premium Services.") If you haven't already chosen that payment method and filed, you'll avoid that fee if you pay instead by credit/debit card or a prepaid debit card you can buy in a store.
It was just a general question. I've never done it before and was curious if they would deduct their money before it was credited to my bank account or if I had to pay them like on my own. It says it's taken from my federal refund, so I was curious if the amount going to my bank is the amount after they take out their fees, or if they take out their fees after it goes to my bank.
As I mentioned above, with the "pay out of refund" option TurboTax takes out your fees before it gets to you unless there's a problem. When it comes to your bank from the intermediary bank, the fees should already be taken out. When you receive your refund, do the math and see if the fees were taken out, including the $40 service fee and any sales tax. You refund amount prior to the fees is shown on your Federal Form 1040, Line 21a.
Does the same apply if i chose to have my return mailed to me ?
@mesquitebean If i chose to have my return mailed paper check does turbo tax do the same thing and the intermediate bank send me a paper check as I requested ?
@ LuhhAntt00
wrote:If i chose to have my return mailed paper check does turbo tax do the same thing and the intermediate bank send me a paper check as I requested ?
This thread is about paying TurboTax product fees out of the Federal refund--an option which requires efiling the return and a direct deposit of the Federal refund.
If you chose to have a Federal refund come to you as a paper check in postal mail, then it's not possible to pay any TurboTax fees out of a check, so no intermediary bank is needed. When a paper check is requested for the Federal refund, the IRS mails paper checks directly to the address on the return without using any intermediary bank.
@mesquitebean Ok answer me this. How come when i use the irs tracking tool it says my refund is on its way to a bank when i chose a check should i be worried ? Or it is just saying its going to a bank and i get a check ?
If you choose to have the TT fees withheld from the federal refund then the refund is sent to the processing bank where they take the TT fees & their fee for the service and the balance of the refund is either direct deposited to your bank account or debit card OR a new TT debit card is issued. Getting a paper check mailed from the processing bank was not one of the options you could choose from. Save a PDF of the return with all the worksheets to see what options you choose ...
After a return has been efiled and accepted, it can sometimes take a return PDF a while to update and become available at the Tax Home. If you can't use the Download/print button at the Tax Home or the "Download/print the PDF" link in the section "Your Tax Returns & Documents", or if you're getting incomplete documents when you use one of those methods, here's an alternate way to print by opening the filed return back up to print at the Print Center.
NOTE: When you open your return back up, do not make any changes in it if it's already been filed. If you later have to amend the return, it has to start off exactly as it was when it was originally filed.
NOTE: Remember all PDF tax documents and tax data files are very sensitive files, since they contain your personal ID info, financial data, and possibly bank account numbers, etc. Be sure to store them safely and securely to guard against computer theft, hacking, etc.
@Critter-3 Yeah I understand all of that but i never put any card information in on turbotax when i filed my taxes so i don’t understand how there’s a account and routing number for where my money is about to go i dont even have the card they have on file i dont even know what kind of card or bank is handling my money right now. I chose to have my return mailed so im so confused on why my refund has to be sent to a bank when that wasn’t my option
Ok ... so you choose to MAIL in your return ??? Did you print, ink sign and mail it in yourself ?
@Critter-3 Nah man i used TurboTax and e filed never asked me for card info i chose to have my return mailed to me by check. I just so happen to go check my 1040 and there was a random routing and account number that i dont know of so i didnt know if TurboTax did that to withdraw there fees from me or if the irs is putting my return on a card and sending it that way 🤦🏾♂️ It’s confusing this my first year filing so i dont know
Please use the following link to contact Customer Support for further assistance.
https://ttlc.intuit.com/community/using-turbotax/help/what-is-the-turbotax-phone-number/00/25632
This is my first time paying fees. I was charge 3x's in fees. Which I should have been able to do my taxes for $0 because I make under $30,000 a year. But instead as I was doing my refund it made me sign up for the deluxe passage for $39.99. now I don't understand this process, because they charged me $39 3x's. 1 for state, 2nd one for federal, and the 3rd one for taking the money out of my refund. So how does this work? Do I get any of that fee back?
Fed fee, state fee + refund processing fee ($39 each) = too much
If you have not yet filed the return then stop and follow the instructions below. If you have then sorry, there is no fee reduction or rebate after you filed. Next time try the IRS site first or ask questions before you agree to anything.
If you started with the free version and had to upgrade to the Deluxe AND your AGI is $73K or less then STOP and walk away. Go to the IRS FREE FILE site and choose another program to get a free fed & state return ...
https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free
Yeah I've used TurboTax when you're done and only was charged $0. So basically I was in charge of anything. But I think what it was is where I had my retirement on the earth and I think that's what made me have to upgrade to the $39. And yes I've already failed. Cuz this is the first time that I've ever been charged but I think the retirement has something to do with it.
I will NEVER use turbo tax again been using for 3 years never had extra fees come out for using them to file my state and federal but this year 2022 I’m getting charged 117.00 I said take it out my refund I check their website TGP to see if funds was taking out since it says to check that website that they are concreted with just for me to see extra fees totaling 161.68. $44 more dollars then what I was told and agreed to come out my refund I should’ve paid that 117.00 up front the worst ever.
We’re aware of an issue related to your Refund Processing that may have caused you to see a smaller-than-expected refund.
We’re in the process of reimbursing all who were affected. Within the next 24-48 hours, those affected will receive a credit. If you were affected, look for a deposit (in the bank account associated with your return) labeled, "Remaining Federal Refund Due". If you don't see that deposit in a few business days, please reach out to TurboTax Customer Support.
No my refund amount is no smaller then expected it’s the current amount never received not one notice from IRS saying that it is a different my tax returns wouldn’t got held up it didn’t my return is simple which I don’t get why I was charged period I used look back when I filed last year with you guys it was free nothing changed I used look back again same dependents just different filing status but this needs to be resolved before my refund hits my bank account please and thank you.
In this public forum, we do not have access to your personal account information. Please reach out to TurboTax Customer Support to have someone review the fees with you. To get you to the right person, use the keywords billing issues.
I elected for turbo tax to take they fees out of my refund. I checked the where's my refund and it stated a check was mailed out. Does my refund still go to the third party bank. And they direct deposit my refund to my account
This is what you asked for >>> IRS refund to go to the third party bank and then the TT fees are withheld and the balance is sent to you.
Now if the IRS sends out the refund as a paper check DIRECTLY to you and skips the third party bank then TT fees were not paid ... expect them to either debit your account for the fee or send you a bill in the mail.