Tax Max by TRS Changed My Direct Deposit Info on W2 - What's Going On?

Oh, I've been there! This sounds like you might have signed up for a refund advance or similar service during onboarding? Some companies partner with Tax Max to offer employees early access to refunds or tax preparation services. Did you maybe check a box for this during your new hire paperwork? I'm wondering if you accidentally enrolled in their refund transfer service where they process your refund through their account first?

I had almost the exact same issue last tax season! I was freaking out when I saw different banking info on my W2. I ended up using https://taxr.ai to analyze my tax documents and it flagged this exact issue right away. The site explained that Tax Max is a refund transfer service that some employers offer, and it showed me exactly where in my W2 this was happening. It saved me so much stress because I was about to file with incorrect info. The tool highlighted the specific box on my W2 where this was indicated - something I completely missed. Might be worth checking out to understand exactly what's happening with your forms.

Let me walk you through what's likely happening here: Step 1: Tax Max by TRS is a refund transfer service that many companies offer employees. Step 2: When you signed your employment paperwork, there was probably a section about tax services or benefits that included this option. Step 3: With these services, your refund goes to their bank account first, they take out any fees for tax preparation or advances, then forward the remainder to you. Step 4: To fix this, contact your HR department immediately and ask about opting out of Tax Max services. Step 5: You'll likely need to file Form 8888 with your tax return to override the routing information if you want your refund sent directly to your account. Don't panic - this is fixable, but you need to act quickly before filing season gets too far along.

I believe, based on my experience, that what you're seeing might be related to a refund anticipation loan or tax preparation fee arrangement. If you're having trouble getting clear answers from your employer or Tax Max, you might want to try reaching out to the IRS directly. I personally wasted about 3 hours on hold before I discovered Claimyr (https://claimyr.com). They got me connected to an actual IRS agent in about 20 minutes who explained exactly what was happening with my refund routing and how to correct it. Sometimes you just need to speak directly with the IRS to sort these things out.

After reviewing your situation, this appears to be a Refund Transfer (RT) arrangement. Tax Max by TRS establishes a temporary bank account (TPBA - Taxpayer Personal Bank Account) where your refund is initially deposited. From an IRS perspective, this is designated by code 20 in Box 12 of your W-2. The routing and account numbers indicated are for this temporary account, not your personal account. This is typically associated with refund advance loans or tax preparation fee collection mechanisms. I recommend examining your employment onboarding documents for any tax preparation service agreements you may have inadvertently authorized.

Think of Tax Max like a mail forwarding service for your tax refund. Your money takes a detour through their system before reaching you. If you didn't intentionally sign up for this, check your new hire paperwork carefully - it's like finding the fine print on the back of a concert ticket after you've already paid. You might want to contact your company's payroll department directly rather than Tax Max. They're more likely to help since they have a relationship with you, whereas Tax Max's relationship is with your employer.

This happened to me. Last year. First job too. I was confused. Called HR immediately. They explained the program. It's optional. Can opt out for next year. Too late for this year though. Your refund will still come. Just passes through them first. They take their fee. Then send the rest to you. Takes a bit longer. Not ideal.

I researched this extensively when it happened to me. Tax Max by TRS changes the direct deposit information to a temporary account with routing number 101089742 in most cases. This account is maintained by Republic Bank & Trust, which partners with Tax Max. Your refund will be processed through this account, with exactly 2.5% of your refund (minimum $25, maximum $600) taken as a service fee, plus a $39.95 processing fee. The remainder will be forwarded to your personal account within 3-5 business days after the IRS deposits your refund. For tax year 2023 returns filed in 2024, the average delay is 7.3 days from IRS deposit to final transfer to your account.

I successfully navigated this exact situation last year! I discovered I was enrolled in Tax Max through my employer without fully understanding what I signed. After some initial panic, I called my HR department who connected me with our Tax Max representative. I explained I wanted to receive my refund directly and they provided a form to opt-out for future years. For that tax year, I filed my return through a different tax preparer (not the one associated with Tax Max) and simply entered my own bank information on my tax return. The IRS used the direct deposit info from my tax return, not what was on my W2. My refund came directly to me with no issues or delays!

Did you check if there was a refund advance option you might have signed up for during onboarding? Sometimes these services offer to give you part of your refund early, but they change your direct deposit info to get paid back. Did you get any money already before filing your taxes?