Tax Act Fees Deducted from Refund - Will DDD of 2/26 Be Delayed?

Let me clarify how this works when you choose to have fees taken from your refund: • Your DDD (2/26) is when the IRS releases your funds, not when you'll receive them • Tax Act partners with a bank (usually Republic Bank or Santa Barbara TPG) that creates a temporary account for your refund • This bank receives your refund, deducts Tax Act's fees, then forwards the remainder to your personal account • This process typically adds 1-3 business days to your timeline • So you're likely looking at receiving funds between 2/27-3/1 Is this your first time using the refund transfer option with Tax Act?

I did the same thing last year and it was such a headache! My DDD was February 18th but I didn't actually get my money until February 23rd. The Tax Act fees were like $89 and then the bank that processes it (Santa Barbara Tax Products Group in my case) took another fee too! I was so mad because I needed that money for rent. This year I just paid the fees upfront with my credit card even though it was tight. At least I'll get my whole refund on the actual DDD date.

I've tracked this process for the past 3 tax seasons, and here are the exact timeframes I've experienced: 2022: DDD Feb 15, actual deposit Feb 17 (2 days) 2023: DDD March 3, actual deposit March 6 (3 days, weekend involved) 2024: DDD Jan 29, actual deposit Jan 31 (2 days) The fee structure was exactly $39.99 for federal filing plus $44.99 for state filing, and a $34.95 refund transfer fee. That's a total of $119.93 you're paying for the convenience. Just so you're prepared, your $2,500 refund (if that's roughly what you're expecting) will be reduced by this amount plus any state fees. Don't worry though - the process is reliable, just not immediate.

When I had this exact issue last year, I was freaking out because my refund didn't show up on my DDD. I tried calling Tax Act customer service and was on hold for 97 minutes! Finally gave up and found Claimyr.com which got me through to an IRS agent in about 15 minutes. The agent confirmed my refund had already been sent to Tax Act's bank partner on my DDD. According to IRS records, it was now the bank's responsibility, not theirs. Sure enough, two days later it appeared in my account. Such a relief to actually speak to someone instead of staring at the "processing" message: https://youtu.be/_kiP6q8DX5c

There are potential implications beyond just timing that you should consider. The Refund Transfer product creates what's technically called a Refund Anticipation Check (RAC), which involves a temporary bank account. This can sometimes trigger additional verification procedures at your receiving bank due to the funds coming from an intermediary rather than directly from Treasury. In rare cases, this can result in a holding period by your bank, particularly if the amount exceeds $10,000 or if there are discrepancies between the account holder name on the temporary account versus your personal account.

I've had this happen four times. Never got my money on the DDD. Always took 2-3 extra days. Tax Act doesn't control the bank timing. The bank makes extra money by holding funds. They have no incentive to hurry. Next year pay upfront. You'll save on fees. You'll get money faster. Worth the upfront cost.

Oh my gosh, I'm dealing with this RIGHT NOW and it's SO frustrating!!! 😤 My DDD was yesterday (2/25) and nothing in my account! Called Tax Act and they basically said "wait 1-5 business days after your DDD" which feels like FOREVER when you're counting on that money! I wish I had just paid the stupid fees upfront instead of trying to save a few bucks. Now I'm checking my account every hour like a crazy person. Never doing this again!