If you entered banking information that was wrong or used a closed account, the bank sends the refund back to the IRS and then the IRS has to issue and mail a check to the address on your tax return. TurboTax does not touch your refund in any way whatsoever. Your refund did not go back to TurboTax.
If you were paying your TurboTax fees from your federal refund there is another complication when you use incorrect banking information for your direct deposit, though.
If you chose to have your fees deducted from your federal refund, but entered wrong or closed bank account information for your direct deposit, you are going to have an aggravating, frustrating situation. Your refund will go back to the third party bank. The third party bank might issue and mail you a check, or they might send your refund back to the IRS and then you will have to wait for the IRS to mail you a check.
If the third party bank mails the check, it will come in a plain envelope via first class mail so make sure you open all mail and do not assume anything is junk mail without opening it. While you are waiting, make sure that the address you entered on your tax return is correct, or your problem will be even worse.
When you choose “refund processing” your refund goes FIRST from the IRS to the third party bank. Then the bank takes your fees out of your refund and sends the rest of the refund to you.
How can I see my TurboTax fees?
https://ttlc.intuit.com/questions/2565973-how-do-i-review-my-fees-in-turbotax-online
What is Refund Processing Service?
Santa Barbara Tax Products Group, LLC (SBTPG) is the bank that handles the Refund Processing Service when you choose to have your TurboTax fees deducted from your refund. This option also has an additional charge from the bank that processes the transaction.
You can contact them SBTPG, toll-free, at 1-877-908-7228 or go to their secure website www.sbtpg.com
https://ttlc.intuit.com/questions/2580357-who-provides-the-refund-processing-service
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
