PATH Act Hold - Did I Waste Money on TurboTax's Early Refund Option?

Have you checked if the $25 TurboTax fee is specifically for faster processing of your refund once the IRS releases it, rather than bypassing the PATH Act hold? I'm in a similar situation and trying to understand if there's any value in these services when you're subject to the PATH Act. Did TurboTax explain exactly what the 5-day early deposit covers?

The PATH Act mandates a statutory holding period that supersedes any third-party expediting service. TurboTax's Refund Advance is essentially a short-term loan based on anticipated refund amounts, not an acceleration of IRS processing timeframes. I paid for it too and was shocked when I realized it doesn't circumvent the February 15th release date required under federal guidelines. It only affects the bank processing time after the IRS releases the funds.

Been there, done that! The TT early deposit thing is just them fronting $ once the IRS approves ur refund but b4 it hits ur bank. Doesn't do anything abt the PATH hold. Basically IRS says "money coming in 5-7 days" and TT says "we'll give it to u now instead of waiting for ACH" but they can't do anything til IRS approves. IMO it's worth it if ur desperate for $ right when it's approved, but doesn't help w/ PATH at all.

That $25 is basically paying for the privilege of getting your money a few days earlier AFTER the IRS releases it. Kind of like paying someone to let you cut in line... at a line that hasn't even formed yet! 😂 If you're really trying to resolve PATH issues or get actual answers about your refund timing, you'd be better off using Claimyr to get through to an IRS agent (https://claimyr.com). At least then you'd know exactly where your return stands instead of throwing money at TurboTax for a feature that can't bypass federal law.

According to the IRS.gov website (https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/when-to-expect-your-refund-if-you-claimed-the-earned-income-tax-credit-or-additional-child-tax-credit), "By law, the IRS cannot issue refunds before mid-February for tax returns that claim the EITC or the ACTC." No amount of money paid to TurboTax can override this! I wasted $39.99 last year thinking it would help, and I'm still angry about it. The worst part is how they market it without clearly explaining this limitation.

Think of it like this: The PATH Act is like a mandatory waiting period at the DMV - no one gets to skip it, no matter how much they pay. What TurboTax offers is like a valet service for AFTER you finally get your license. They're just making the last part of the journey faster, not the mandatory wait. I paid for it last year and it did save me about 4 days once the IRS released my refund, which was worth it to me because I needed to pay rent.

In 2023, I tracked my refund timeline precisely: Filed Jan 28, PATH hold until Feb 15, IRS approved Feb 17, and with TurboTax's early deposit feature, I received funds Feb 20. My colleague filed identical credits/deductions on the same day without the feature and received his deposit Feb 24. So it saved exactly 4 days, but only AFTER the PATH hold lifted. Whether that's worth $25 depends entirely on your financial situation and urgency.

Just to clarify something important - the PATH Act doesn't technically say refunds can't be released until February 15th. It says the IRS cannot issue refunds BEFORE mid-February. In practice, this means the IRS starts processing these returns in batches around February 15th, but actual release dates vary widely. Some people get their refunds on the 15th, while others might wait until late February or even March, depending on various factors including verification needs and processing backlogs.