Direct Deposit to my checking account

[Paul 2020]

I received a an ACH reading "Credit Tax Products PE 1 SBTPG 200408'

It was for $2701.

What is that deposit for?

[JakailaLO]

Santa Barbara Tax Products Group-they are the company that processes the refund whenever you choose to have your TurboTax fees deducted from your federal. The refund is sent to them, the fees are deducted, and then the remainder is sent to your bank.

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[Paul 2020]

Jakaila,

How large a fee does SBTPG take?

TurboTax had calculated I was to receive $3,539 with a refund of $3,264 after TurboTax fees were deducted.

I see a direct deposit of $2,701.

That is a $563 difference.

Please explain what is going on.

Thank you very much.

[JakailaLO]

Turbo Tax only deducts filing fees, you may have had an offset applied to your return, while we do know the specifics, here is an article that can explain what an offset is: https://ttlc.intuit.com/community/refunds/help/what-is-a-refund-offset/00/26301

[Paul 2020]

I'm still wondering where the balance of my refund is.

Your answer does not explain this.

[mesquitebean]

@Paul 2020 

You can verify what SBTPG received from the IRS and how much they subtracted by logging into the tool at the SBTPG website.   To log in, choose the taxpayer portal at:

https://www.sbtpg.com/

Also double-check the amount of your Federal refund by looking at your actual Form 1040, Line 21a.  Be sure you are not using a total refund amount that TurboTax provides at the Tax Home that is a sum of your Federal and state refunds (if applicable).  The figure shown at the Tax Home can confuse some people the way that TurboTax presents it.   Use only the Federal amount shown on your return.    The state refund comes separately and does not go through SBTPG.  Does a state refund explain the difference?

Once you have confirmed what you actually see on your return, if  it turns out that the IRS reduced your refund from the amount shown on your Form 1040, Line 21a, then in normal times the IRS would send you a letter in about 3 weeks explaining why.   But due to the Coronavirus situation, IRS correspondence is limited and all but shut down.  So if the IRS reduced your amount, expect delays in hearing from them.

In the meantime, log into the IRS "Where's My Refund" tool.  If there was an offset, there may be a notice in that tool.

https://www.irs.gov/Refunds