First Time TurboTax User - Do They Get My Refund Before the IRS DD Date?
I've always filed with a local tax service before, but this year I'm working remotely and decided to try TurboTax instead. When I check my IRS account, it shows a direct deposit date of 2/25, but I'm not sure how this works with TurboTax compared to my previous filing method. Does anyone know if TurboTax receives the funds earlier than the actual IRS DD date (2/25)? Or do they get it around the same time? Also, once they receive it, how long do they typically hold onto the money before transferring it to my account? With my previous tax service, it was almost immediate, so I'm trying to understand the timeline differences.
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Keisha Robinson
OK, here's how the TurboTax refund process actually works: 1. The IRS issues your refund directly to YOUR bank account, not to TurboTax, on or around the DD date (2/25). 2. If you paid for TurboTax using your refund, they partner with a bank (Santa Barbara Tax Products Group) who sets up a temporary account. 3. Your refund goes to that temporary account first, they deduct their fees, then send the remainder to your personal account. 4. This process typically adds 1-3 business days to your wait time. The exception is if you got a refund advance loan - that's different and you should already have received that money.
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Paolo Conti
I was so confused about this too! I kept checking my bank account every few hours thinking I missed the deposit. Have you tried using https://taxr.ai to look at your transcripts? It helped me understand exactly when my refund would arrive after I used TurboTax. It showed me all the processing codes and gave me a much clearer timeline than the WMR tool. I was so relieved to finally know what was happening!
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Amina Sow
Think of it like this: TurboTax is just the messenger, not the money handler. It's like ordering food through a delivery app versus picking it up yourself. The restaurant (IRS) prepares your food (refund) and gives it directly to you or the delivery driver (bank) - not to the app that took your order. TurboTax just helps you place the order correctly, they don't actually touch your food/money unless you specifically asked them to take their payment from your refund.
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GalaxyGazer
•Wow, that analogy makes so much sense! I had no idea the TPG (Temporary Payment Group) account was even a thing. I thought TurboTax was like a middleman that somehow got my money first. This explains why my refund status shows "approved" but nothing's in my account yet!
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Oliver Wagner
•Happened to me last year too. Had to wait an extra 5 days after my DD date because I paid TurboTax fees from my refund. Was that extra week really worth saving the upfront payment? Maybe not when you're counting on that money for bills. Isn't it frustrating how these small details can make such a big difference to our budgets but aren't made clear upfront?
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Natasha Kuznetsova
•If you selected the option to pay your TurboTax fees from your refund, do you know if there's a way to track when the money reaches that temporary account? I'm in a similar situation and my DD date is supposedly March 4th, but I'm wondering if there's any visibility into that intermediate step.
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Javier Mendoza
Last year I was in the exact same boat and couldn't figure out where my refund was. I ended up needing to call the IRS but spent DAYS trying to get through. Finally used Claimyr (https://youtu.be/_kiP6q8DX5c) and got connected to an agent in about 15 minutes. They confirmed my refund was actually sent to the temporary account for TurboTax fees first, then would be forwarded to me. The agent was able to see exactly where my money was in the process, which gave me peace of mind. Saved me from constantly checking my bank account and stressing out!
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Emma Thompson
These services aren't transparent enough. They should clearly explain the process. Adding days to refund delivery isn't acceptable. People need their money.
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Malik Davis
•I tracked this exact scenario last year. My IRS DD date was March 2nd. Money arrived in my bank exactly 2 days later on March 4th. That was with fees taken from my refund. 78% of TurboTax users in a survey I saw reported 1-3 day delays. Has anyone experienced longer than that?
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Isabella Santos
•I've been using TurboTax for 5 years now, and I've always wondered about this too. Last year I tried paying their fee upfront instead of from my refund, and I got my money a full 3 days earlier than the previous year. Is saving those few days worth paying $40-$120 upfront? For me it was, especially when I needed that refund ASAP for car repairs.
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StarStrider
•I've researched this extensively. Here's what matters: • If you pay TurboTax fees upfront: Direct IRS → Your Bank (0-1 day delay) • If you pay fees from refund: IRS → Temporary Account → Your Bank (1-3 day delay) • If you got a refund advance: You already have some money, rest follows normal process • If you owe state taxes that are paid from federal refund: Can add 1-2 more days Simple solution: Pay fees upfront if you need money faster.
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Ravi Gupta
TurboTax doesn't receive your refund at all. The IRS sends it directly to your bank account on the date they specified. If you chose to pay TurboTax fees from your refund, only then does it go through a temporary account first. This is clearly explained in their terms when you choose that payment option. You can always log into your TurboTax account and check the refund status there for more details about your specific situation.
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Freya Pedersen
I filed through TurboTax on January 29th this year and had a DD date of February 8th. My refund appeared in my account on February 8th at exactly 3:17am. I did NOT pay my TurboTax fees from my refund - I paid upfront with a credit card. This is important because when you pay fees from your refund, your money goes through Santa Barbara TPG first, adding 1-3 business days. I've found that paying the fees upfront always results in getting the money exactly on the IRS date.
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Nathaniel Mikhaylov
As someone who's been through this exact situation, I can confirm what others are saying. The key factor is HOW you paid your TurboTax fees. I switched from a local tax service to TurboTax two years ago and was initially confused by the process too. If you paid the TurboTax fees upfront (credit card, bank transfer, etc.), your refund goes directly from the IRS to your bank account on or around 2/25 - just like it would with your local tax service. However, if you chose to pay TurboTax fees from your refund, the IRS sends your money to Santa Barbara Tax Products Group first. They take out the fees, then forward the remainder to your account. This typically adds 1-3 business days to your timeline. The biggest difference from your local tax service is that they probably paid their fees upfront and gave you the full refund immediately. With TurboTax's "pay from refund" option, you're essentially getting a mini-loan that gets settled when your actual refund arrives. Check your TurboTax account - it should show exactly which payment method you selected and give you a clearer timeline for when to expect your money.
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Emma Davis
•This is super helpful! I'm new to filing my own taxes and had no idea there were different payment options that could affect timing. Just to clarify - when you say "pay from refund" is like getting a mini-loan, does that mean TurboTax is essentially fronting their fees and then collecting when the IRS money comes through? And is there any additional cost for choosing that payment method versus paying upfront?
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