When does turbo tax collect their fees? Is it after your refund is approved?

[RobinB2 · Accepted solution]

If you elected to have the TurboTax fees deducted from your refund by using our Refund Processing Service, the fees are deducted when your refund has been approved and sent out by the IRS. This process is automated and instantaneous once the funds have been released.

https://ttlc.intuit.com/replies/3301372

[Misty1992]

if a tax payer has elected turbotax to withhold the filing fee from my federal refund a d my estimated refund date shows 2-11-2020 when will turbotax withhold the fee ?

[Chines1]

So does all your refund go to turbotax then sent to you after they take their fees or is it sent to you by the irs and the irs sends turbotax part of it? Im so confused. I never choose turbotax to take their fees from refund before so im wondering if I will still get the refund by the date the IRS website posted. 

[DoninGA]

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@Chines1 wrote:

So does all your refund go to turbotax then sent to you after they take their fees or is it sent to you by the irs and the irs sends turbotax part of it? Im so confused. I never choose turbotax to take their fees from refund before so im wondering if I will still get the refund by the date the IRS website posted. 

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TurboTax does not receive any kind of tax refund, federal or state.

If you requested to have the TurboTax account fees deducted from your federal tax refund, the IRS will send the refund to a third party processor to have the fees and the service charge deducted. The third party processor will deduct the TurboTax fees plus the service charge and then attempt to direct deposit the remaining refund balance into the account that you entered on your tax return.

For the status of your tax refund you will need to contact the third party processor, Santa Barbara Tax Product Group, using their website - https://www.sbtpg.com/

Tax Products Group Contact Information - https://help.sbtpg.com/hc/en-us/articles/230084587-Contact-Information

[mack823]

My Turbox tax fees are being paid from my federal refund. TurboTax fees updated to paid yesterday. So when will I see my federal refund. Must be soon If they paid TurboTax. Fyi my 21 days was 2/13/23 it's now 2/17/23. I still have not received any money. How long after Irs pays my TurboTax fees do I actually get my refund? 

[DaraLO]

Please check the IRS' Where's My Refund website for the status of your refund.  For more information, refer to the following Help Article:  When will I get my IRS tax refund? - Intuit

@mack823 

[Sierratc1]

Any update did you receive your refund on the 17th? 

[mack823]

@Sierratc1 Nope and I'm seriously rethinking doing my taxes with TurboTax ever again! I just contacted the TurboTax Bank they're still saying my refund has not been issued and I can't talk to any person from TurboTax or there. And my fees have been paid and my refund has been issued so I'm really starting to get pissed. And never mind I paid a lot of money this year by accident to TurboTax for products I didn't even need I was like tricked and charged for s*** that I've never used. I've just about had it. And I am using my regular bank so this is ridiculous

[PII removed]

[DaraLO]

Did you check Where's My Refund for the total refund amount the IRS approved?  This will also give the date the IRS expects the amount to deposit into your bank account.

@mack823 

[mack823]

@DaraLO oh I have that's why I have been TRYING to get a human at TurboTax to zero success. It really is so frustrating! The IRS has already issued my refund. And transcript has updated to 846 code. But because I took the option of having my fees taken from my TurboTax this year my refund is currently been just sitting in turbotax's bank. And what makes it even more frustrating is my tax fees have been paid for a week!. And TurboTax Bank tracking app where's my refund will not update and of course a live person will not answer. Thier automatic vm system is also still saying they do not have my refund!🤬 but they definitely do sense they took there fees and Irs has issued the refund! FYI I did not do the  advance option Thur Tt and I have my return go directly into my private bank so there is absolutely no reason for this. My  fees have been paid for almost a week and yet TurboTax Bank is still holding my refund. I just don't get it. And according to a private tax group I am in this is a reaccuring problem for people with that used TurboTax and had fees taken from their refund. It's absolutely ridiculous. And another thing I am super frustrated with is for some reason TurboTax decided to charge me $239 to do my taxes this year and give me products that I do not need or will ever use but I won't even get into that. Idk I've always used TurboTax every single year. I've never had this issue but I am rethinking everything right now LOL

[mack823]

Yes lol. Everything is kosher with IRS. If I didn't use turbo tax my finds would of already been in my bank smh. 

[xmasbaby0]

@mack823 This is a public web site that can be seen by anyone—including scammers and would-be identity thieves who would love to contact you and pretend to be from TurboTax.  Please remove the personal information you posted here ASAP by returning to your post and clicking the three little blue dots on the upper right to edit your post.

[xmasbaby0]

@mack823 The screenshot  you posted is not information that came from the IRS.  That information came from your TT account.  The fees are considered to be "paid" because you chose to have them deducted from your federal refund, so TT knows that they are getting their money.     That does not mean the IRS actually issued your refund on the date the TT accounts shows the fee as paid.   TurboTax gets no information from the IRS after you file your return.  TT never knows if or when you got your refund.

ONLY the IRS can approve and issue your refund.   If/when the IRS refund site says your refund has been issued then it goes first to the third party bank, and then the third party bank takes out your fees and sends the rest of the refund to you.   

What does it say on the IRS refund site?

You need your filing status, your Social Security number and the exact amount  (line 35a of your 2022 Form 1040) of your federal refund to track your Federal refund:   

https://www.irs.gov/refunds

[mack823]

Thank you. So I guess to rephrase my question.. if IRS states they issued federal refund on 2/15 and tax transcript update to 846 code then now my money is at ttax's bank to pay fees. So how long does that process take. How long will it sit at ttax's bank for fee payment?