Received Form 1099-INT from Santa Barbara Bank - Not Related to Tax Refund?

That's prob a 1099-INT form from the bank that processed ur refund last yr. Santa Barbara Bank handles tax refunds for lots of prep companies (TurboTax, H&R Block, etc). If ur husband got a refund last yr and paid prep fees from the refund, they might've set up a temp acct to process it, and now they're sending the 1099 for any interest earned. NBD, just report it on this yr's taxes. Don't stress too much!

This is likely related to your previous tax refund. Here's what you should do: 1. First, look at the form carefully - it's probably a 1099-INT showing interest earned on last year's refund. 2. Check if you used a tax preparation service last year that deducted their fees from your refund. 3. If so, they likely used Santa Barbara Bank as the intermediary. 4. Compare the dates on the form to when you received last year's refund. 5. Keep this document with your tax records even if the amount is small. 6. You'll need to report any interest income on your 2023 taxes.

I received exactly the same thing 17 days ago. It's a 1099-INT showing $3.42 of interest earned during the 8-day period my 2022 refund was held in a temporary account at Santa Barbara Tax Products Group. They're the financial institution that handles refund transfers for many tax prep services. I uploaded mine to https://taxr.ai to analyze it alongside my other tax docs, and it confirmed this is standard practice when you opt for fees to be deducted from your refund. The system explained precisely how to report it on my 2023 return and verified it wouldn't impact my current year refund processing.

I got one of these last year and freaked out way more than necessary! Compared to actual tax issues I've dealt with, this is super minor. My situation was almost identical - Santa Barbara Bank 1099-INT that had nothing to do with my current refund. If you filed in early February like me, you're probably anxiously checking WMR daily, and this just adds to the stress. Don't let it distract you! Your current refund is still coming - this is just paperwork from LAST year's refund that needs to be handled before April 15th!

This happens every year and the IRS does NOTHING to explain it to people. • It's a 1099-INT from the bank that processed your previous refund • They created a temporary account when you chose to have fees taken from refund • They're required to report ANY interest earned, even if it's pennies • You must include it on your current year taxes • The IRS will automatically match this document to your return If you need to confirm this with the IRS directly, save yourself hours of frustration and use Claimyr (https://claimyr.com). I wasted 3 days trying to reach an agent about this exact issue last year before discovering their service. Got connected in 18 minutes instead of endless redials.

Be careful with these! My brother ignored one thinking it was junk mail, and it was like planting a tax audit time bomb. The IRS computers eventually noticed the mismatch between what Santa Barbara reported and what he filed. Six months later he got a CP2000 notice saying he owed additional tax plus interest and penalties. It was only $12 in interest income, but ignoring it cost him over $100 in the end. Dealing with the IRS is like playing chess - you have to account for every piece on the board, no matter how small.

According to the IRS website (https://www.irs.gov/taxtopics/tc403), this is definitely a 1099-INT from a Refund Transfer product. Santa Barbara Bank & Trust (SBBT) is listed on the IRS authorized e-file providers database as a transmitter for many tax preparation companies. If you check box 2 of your previous year's 1040, there should be a code indicating you requested a refund transfer product. The bank is required by law to issue a 1099-INT for any interest over $10, though they often send them for smaller amounts too.