What is Refund Processing?
In TurboTax Online, we offer the option to deduct your TurboTax fees from your federal (not state!) tax refund.
This option is called Refund Processing. If you don't have a credit or debit card to pay your TurboTax Online fee, this can come in handy.
The Refund Processing Service is simply an alternate way of paying your fee – it's not required for e-filing or direct deposit of your refund.
This option is also available in the desktop cd/download version for State e-filing, if you do not want to use a credit card.
What does it cost?
The Refund Processing Service fee is $29.99, which is added to your TurboTax Online fee and then deducted from your refund.
For example, if you choose to pay your $49.99 TurboTax Online fee using the Refund Processing Service, your tax refund will be reduced by $79.98 ($49.99 + $29.99).
Who provides this service?
When you sign up for the Refund Processing Service, your refund will be handled by one of these banks:
- University National Bank of Saint Paul, MN; or
- First California Bank.
The bank that handles your refund is determined by the first Social Security number listed on the return.
If you have any questions about your refund, please do not contact the bank directly; instead, go to the Santa Barbara Tax Products Group website.
What else should I know about the Refund Processing Service?
- Refund Processing is exclusively available in TurboTax Online (also available for CD/Download for State e-file only).
- The Refund Processing Service fee can only be deducted from your federal refund, not your state refund.
- Refund Processing will only appear if you have a federal refund. If you owe tax or have a 0 refund, this option won't appear.
- Refund Processing can only be used once on your 2012 return.
- For example, if you file your federal return and pay for it with Refund Processing, you won't be able to use this option to pay your state fees should you later decide to file your state return.
- You'll need to e-file your federal return. This option is not available for paper-filed returns.
- A bank account is required if you want to direct-deposit your refund.
- Make sure the name on the account matches the name on your return.
- You cannot split your refund into multiple accounts.
- If you don't have a bank account, click here to learn about other options.
- The Refund Processing Service will neither delay nor speed up your refund.
- If you change your mind, you can remove the Refund Processing Service before you e-file by clicking here and following the directions.
Important: Refund processing service fees are only charged once, when the IRS processes your return. If your return is rejected by the IRS, you may be asked to enter your payment information again. Don't worry. You won't be charged a second time.
How do I find the Refund Processing Service in TurboTax Online?
This option will only appear in TurboTax if you're e-filing your return and you have a federal tax refund due. Click here for complete instructions.
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