What is tax products

[BrandiLO]

Do you mean Santa Barbara Tax Products Group? If you used refund processing (had your fees for TurboTax paid for with your refund), SBTPG (Santa Barbara Tax Products Group) will process that transaction (deduct the TurboTax fees, then transfer the payment to your bank account). If that is the case, you can track that process by clicking here.

[lizrob14]

can u please explain to me why how it the process? and why does it comes out saying tax product pe3? thank you.

[mesquitebean]

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@lizrob14 wrote:

can u please explain to me why how it the process? and why does it comes out saying tax product pe3? thank you.

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Did you get a refund deposit labelled "Tax products pe3"?

If so, that would be a Federal refund minus the fees.   I assume you chose to pay your product fees out of your Federal refund.  If so, the funds go first from the IRS to a temporary account at an intermediary bank where the fees are subtracted. Then that intermediary bank sends the rest of the funds on to your bank (or card.)   The company that manages all that is called SBTPG (Santa Barbara Tax Products Group.)   So if you chose that method to pay fees, then the deposit description of the payer may say "Tax products pe3" or something similar.

[eric481]

my refund was $3510.  amount deposited was $ 2019. what is up with that. i had filing fee taken from refund. but $1500.   explain please

[VolvoGirl]

Was 3510 just for Federal? Maybe it included a state refund?  Federal and state come separately.  Did you have any amount on 1040 line 30 for the Recovery rebate credit that you already got?

The IRS will mail you a letter saying what they changed.

[EbonyA]

Please review the following FAQ: Refund less than expected @eric481.

[Defraudedcustomer]

Its the dirty practice of charging you $40 for giving you your own money.

[mesquitebean]

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@ Defraudedcustomer wrote:

Its the dirty practice of charging you $40 for giving you your own money.

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I don't work for TurboTax.  I'm a fellow user, but I can tell you why there is a service fee for that option to pay fees out of one's Federal refund.   Whether it is an appropriate amount or not, would be a different debate.   There is no service fee if one pays their product fees upfront with credit/debit card or a prepaid debit card one can buy in a store.

When you choose to pay your TurboTax fees out of your Federal refund, an intermediary company (SBTPG) opens a temporary bank account in your name at one of its banks.  That bank receives your deposit from the IRS into your temporary account.  It then takes out the fees, and sends the rest to your bank account (or card.)  Then the intermediary bank closes that bank account it opened for you.

So there are likely costs related to administering the opening of the bank account, paperwork, Federal regulatory requirements, etc.

[Defraudedcustomer]

Its a dirty practice that i have become more aware of in the past 48 hours.   There are class actions suits for what these companies have been doing.   First off,   I signed into what was being told to me was free to file, and when i was hit with. $40 fee, i was told it was only for new users.  I never consented to them opening up a bank account in my name.   If anyone on here thinks this is honest business practice, you are part of that system.  I just found out these companies bought out the google searches that put the free government tax filing out of eyesight.   I had no problem with turbotax until they hit me with that service fee..  its the same thing that happens when you book a hotel and then they hit you with a “resort fee”.  Offer your product and make money.. im fine with that, but i find it dishonest and cruel to pull junk like this.   Live and learn.  Intuit will never get my business again, but im  sure they dont care, just like the “extended car warranty” calls everyone gets.   Its only takes a few suckers to keep them going

[DoninGA]

@Defraudedcustomer 

Simple Google search - irs free file

Results - https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free

The service charge for the completely optional pay with refund is clearly stated on the TurboTax website 

[Defraudedcustomer]

I was got.   It wont happen again.  Its funny they put it in small print.  It seems like a legitimate company would include the fees in the owed service balance.   There is a reason they do it like that...  To take advantage of customers.  Im sure they own the partner company and the bank.   In my opinion, this is no better than robbing someone on the street.  I am disgusted by the greed of these companies.   I though comcast was the worst company to deal with, but intuit takes the lead.   At least Comcast will try  to reconcile an issue

[Defraudedcustomer]

[removed]

[mesquitebean]

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@ Defraudedcustomer wrote:

 I signed into what was being told to me was free to file, and when i was hit with. $40 fee, i was told it was only for new users.  I never consented to them opening up a bank account in my name.

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When you originally posted in this thread, and to which I responded, no information was provided other than your complaint of "charging you $40 for giving you your own money."    I assumed that you meant the additional $40 service fee for paying TurboTax product fees out of your Federal refund; i.e., the thread topic of "Tax Products", the company that handles that payment method.

A bank account is opened only if you chose to pay your TurboTax fees out of your Federal refund.   You never specifically said that you chose that method to pay your product fees, but since the title of this thread is asking what "Tax Products" is and from other comments in this thread, I assumed you were asking about the same topic.    

If you are not referring to that service fee, but instead referring to a $40 product fee  (such as a $40 Deluxe Federal return prior to March 1) that you paid upfront with credit/debit card, then that would not have opened a bank account.  The intermediary bank account is used only when one chooses to pay product fees out of the Federal refund.

If you DID choose to pay your product fees out of your Federal refund, then before filing there is a banking agreement and terms in regard to that refund processing option that have to be reviewed and agreed to in order to proceed.

[Defraudedcustomer]

Sounds like you work for the company.  Its apologetics like you, and self serving companies that increase the disproportionate financial equality of the american people.