Refunds Or Amount Owed

What is a refund transfer?

Understanding the Basics of Refund Transfers

BS

Business Tax Specialist

Tax Expert

3 min read
Published on 5 months ago
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A refund transfer (RT) is a service offered by Santa Barbara Tax Products Group (SBTPG) that allows taxpayers to pay for tax preparation services using their federal tax refund. It is not a loan, but rather a temporary deposit account established under the taxpayer’s name and Social Security number at SBTPG, which is linked to Green Dot Bank, a FDIC-member institution. Once the IRS deposits the refund into this account, SBTPG deducts its fee ($29.95) and the tax preparation service fee (typically $7.95–$9.95 per return) before disbursing the remaining refund amount to the taxpayer via ACH direct deposit.

Key Features of a Refund Transfer

  • Not a loan: Refund transfers are not credit products; they are deposit-based services.
  • Fee structure: A $29.95 bank fee is charged by SBTPG, in addition to OLT’s service fee. These fees are non-refundable.
  • Eligibility: Requires electronic filing (e-filing) and a federal tax refund. Cannot be used if no bank account exists—paper checks are the only alternative in that case.
  • Processing time: Funds are typically available 9–16 days after the IRS accepts the return, with ACH processing taking up to 1–3 business days.
  • Irrevocable after filing: Once the return is electronically filed and accepted by the IRS, the refund transfer request cannot be canceled or changed.

How to Check Status or Make Changes

  • Visit https://taxpayer.sbtpg.com/login to view refund details.
  • Call SBTPG directly at 1-877-908-7228 for assistance.
  • Corrections to bank account information may be made only if funds have not yet been disbursed or if an ACH transfer was rejected.

Source:

Disclaimer: Always verify details with official IRS forms and instructions or your state’s Department of Revenue. For complex tax situations, consult a CPA or tax attorney.

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Key Takeaways

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