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What is a State Refund Transfer?

The State Refund Transfer is a non-loan product that facilitates the payment of tax preparation fees from the state tax refund. The state taxing authority deposits the taxpayer's state income tax refund into a temporary bank account where all associated fees are withheld from the refund and the remaining amount is paid to the taxpayer. Funding times vary from state to state.

 

How it works

Once a taxpayer agrees to pay for tax preparation with their refund, the return is filed to the state taxing authority with the temporary bank account information included on the state tax return.

When the state taxing authority issues the tax refund, funds are deposited into the taxpayer's temporary account, typically in as little as 21 days from the date the IRS acknowledged processing the federal tax return. Upon receipt of the refund from the state, all authorized fees (including the tax preparation fees) are deducted from the tax refund and disbursed to all parties.

The remaining balance is disbursed to the taxpayer via the disbursement method chosen by the taxpayer which may include a cashier's check printed from your office, direct deposit to the client's bank account or a Green Dot Prepaid Visa Card (opt-in to this program is required).

 

Refund Transfers are deposit products using Green Dot Bank, Member FDIC, that enable certain deductions from the account to be processed. Refund Transfers are not loans. Tax refund and e-filing are required in order to receive Refund Transfer. Fees apply. Terms and conditions are subject to change without notice. Ask your preparer about other IRS e-file options, some of which are provided at no additional cost.

Green Dot® card is issued by Green Dot Bank, Member FDIC, pursuant to a license from Visa U.S.A., Inc. Visa is a registered trademark of Visa International Service Association. Green Dot Bank also operates under the following registered trade names: GO2bank, GoBank and Bonneville Bank. All of these registered trade names are used by, and refer to, a single FDIC-insured bank, Green Dot Bank. Deposits under any of these trade names are deposits with Green Dot Bank and are aggregated for deposit insurance coverage up to the allowable limits.

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