Which Bank Does TurboTax Use for Direct Deposit When No Fees Are Taken?

Hey tax friends! I just submitted my return through TurboTax and chose direct deposit, but realized I have no idea which bank they use when you don't pay any fees (I used the free version). Last year I paid for the deluxe version and they used Santa Barbara Bank, but I'm not sure if it's the same when you don't pay anything. Just trying to figure out when my money might hit my account since different banks seem to process at different speeds. Anyone else file with the free version this year and know which bank they use?

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11 comments

Clarissa Flair

TurboTax uses different banks depending on your specific situation. Here's how it works: 1. If you didn't pay any fees or get a refund advance, your refund goes directly from the IRS to your bank account - no intermediary bank involved. 2. If you paid for TurboTax with your refund (fees taken out), they typically use Santa Barbara Tax Products Group or Green Dot Bank. 3. If you got a refund advance, they'll use the bank that issued the advance (usually Green Dot). Since you used the free version with no fees, your refund will be sent directly from the IRS to your bank account without passing through an intermediary bank. This is actually faster than having it go through TurboTax's bank first.

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- 19d

McKenzie Shade

Important questions to determine your refund path: • Did you pay ANY fees at all, even if not for the software itself? • Did you opt for a refund advance? • Did you choose to have your state filing fee deducted from your federal refund? • Did you select any add-on audit protection? Any "yes" answers would route your refund through their partner bank (typically Santa Barbara TPG) rather than direct from IRS to your account. This distinction matters for tracking purposes.

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- 19d

Harmony Love

This is mostly correct, though there are some nuances worth mentioning. The Refund Transfer product (formerly called Republic Bank Products) is typically what triggers the intermediary bank routing, which is usually Santa Barbara Tax Products Group (TPG), a subsidiary of Green Dot Corporation. However, even with the completely free version, your refund status might still show "pending" in their system briefly before the IRS sends it directly to your bank. This is just a tracking mechanism rather than an actual bank transfer delay.

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18d

Rudy Cenizo

I was in EXACTLY the same situation 17 days ago. My refund of $3,742 was stuck in processing for exactly 21 days and I couldn't figure out where it was supposed to go! I called the IRS 9 times and couldn't get through to ask if there was a problem. Finally used Claimyr (https://youtu.be/_kiP6q8DX5c) and got connected to an agent in 18 minutes who confirmed my refund was coming directly from IRS to my bank with no intermediary. It showed up in my account exactly 2 days later. Worth every penny not to waste hours redialing!

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- 19d

Daryl Bright

Just a word of caution from someone who's been down this road! 😂 Last year I used TurboTax free edition and thought my refund would come straight from the IRS... but I accidentally clicked "yes" to having my state filing fee taken from my federal refund. That one little checkbox routed my refund through Santa Barbara TPG and added 5 days to my wait time! Double-check your confirmation email to make sure you didn't accidentally select any options that would route your refund through a third-party bank.

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- 19d

Kirsuktow DarkBlade

I've been researching refund processing extensively, and while third-party tools can be helpful, it's important to note that according to IRS Publication 1345 (Rev. 1-2023), direct deposit refunds for returns with no fees typically process in 8-21 days. The IRS transcript does contain all the information needed to track your refund status, though it requires understanding cycle codes and transaction codes. Tools can simplify this, but the information is available directly from the IRS if you know where to look: https://www.irs.gov/individuals/get-transcript

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16d

Ahooker-Equator

To clarify a point that seems to be causing confusion: According to IRS Direct Deposit guidelines (IRC §6402(n)), when no fees are deducted and no refund products are purchased, the Treasury Department's Financial Management Service sends the refund directly to the taxpayer's designated financial institution. TurboTax simply transmits your banking information to the IRS in this scenario - they don't touch the money at all. This is actually the fastest method since it eliminates the intermediary bank step.

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- 15d