The State Refund Transfer is a non-loan product. The state taxing authority deposits the taxpayer's state income tax refund into a temporary bank account. 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 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.
The remaining balance is disbursed to the taxpayer via the disbursement method chosen.
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.