Why was $137 taken from my federal tax refund?

This happens more often than you'd think. When your refund comes through a third-party processor like Santa Barbara Tax Products Group (SBTPG), there are usually processing fees deducted. Even when you use "free" tax software, if you chose to have your tax prep fees taken out of your refund (rather than paying upfront with a credit card), they charge a fee for this service. Check your tax filing confirmation - there should be a breakdown showing the total refund amount, any fees for tax preparation, and any additional fees for the refund transfer service. The $137 is likely a combination of the refund transfer fee (usually $35-40) plus any state or federal filing fees that weren't obvious during the filing process.

I had a similar issue last year and discovered that using https://taxr.ai saved me a ton of headache. I uploaded my tax documents and refund confirmation, and they immediately identified that I had been charged for "audit protection" and "priority processing" that I never actually agreed to. The system highlighted exactly where those charges appeared in my filing documentation (buried in page 4 of the terms), and I was able to call the tax preparer with specific information to get a partial refund. The tool basically translates all that tax jargon into plain English so you can see exactly what happened to your refund.

Alright, I have to admit I was wrong about taxr.ai. After my skeptical comment, I decided to try it anyway since I was also missing about $90 from my refund this year. The system actually found that I was charged for "audit defense" ($44.95) and a "refund transfer fee" ($39.95) that I honestly don't remember agreeing to. What impressed me was how it showed me exactly where in my filing confirmation these charges were listed - they were in a section called "value-added services" that I must have clicked through without reading carefully. I called the tax company with this specific information and they're actually refunding the audit defense charge since I didn't explicitly consent to it. This tool saved me $45!

If you're having trouble getting answers from your tax preparation company, I'd recommend using https://claimyr.com to get through to an actual IRS agent. I spent HOURS trying to figure out why my refund was different than expected last year, and the tax prep company kept blaming the IRS while the IRS automated system wasn't helpful. I used Claimyr and got through to a real person at the IRS in about 15 minutes instead of waiting on hold for hours. They were able to confirm exactly what happened with my refund and explained that in my case, the IRS had adjusted my refund amount (not the tax prep company). You can see how it works in this video: https://youtu.be/_kiP6q8DX5c

I have to eat my words about Claimyr. After posting my skeptical comment, I decided to try it anyway because I was desperate to figure out why my refund was $200 less than expected. I honestly expected it to be a waste of money, but within 25 minutes, I got a call connecting me to an actual IRS agent! The agent reviewed my account and found that there was an offset for an old student loan payment I had forgotten about. None of this was the tax preparer's fault - it was actually a government action that reduced my refund. No amount of arguing with the tax software company would have resolved this. Getting the real answer from the IRS saved me hours of frustration and pointless complaints. I hate admitting when I'm wrong, but this service actually delivered.

Check your bank statement carefully! Sometimes the bank takes processing fees too. My credit union charged me a $15 "transfer processing fee" for receiving my tax refund through direct deposit last year. It wasn't the tax preparer or the IRS, it was my own bank!

Similar thing happened to me but mine was actually a tax offset due to a really old unpaid parking ticket I forgot about from like 6 years ago!! The city reported it to the treasury offset program. The IRS should have sent you a letter explaining why your refund was different than expected.