Apr
30
TurboTax Direct Deposit Stimulus Payment Questions
April 30, 2008 |
Due to the large number of questions regarding direct deposit tax refunds, the economic stimulus payment and TurboTax, I’ve written another article dedicated to TurboTax questions.
What is TurboTax?
Many people file their taxes with TurboTax. I’ve always used TaxCut by H&R Block but I’m sure the services are very similar. TurboTax is software that you can use either on your desktop (you bought it at BestBuy or Wal Mart and installed it on your computer) or you completed your taxes on the TurboTax website. TurboTax is owned by Intuit who also makes Quicken and QuickBooks (which I use for my business).
How Does Using TurboTax Affect My Economic Stimulus Payment?
If you’ve used TurboTax to file your income tax, there is a chance you will be getting a paper check in the mail. You will get a paper check even if you get your federal income tax rebate by direct deposit.
Why Won’t I Get My Economic Stimulus Payment by Direct Deposit?
If you used TurboTax’s “refund transfer” you will not get a direct deposit. This information comes directly for the TurboTax Support Site Page on the Stimulus Payment:
Under certain circumstances, however, the IRS has decided that taxpayers can only get their rebates by mail, even if they get their refunds by direct deposit. At TurboTax, this will happen if you use a “refund transfer” when filing your 2007 return. This service lets you pay for your tax preparation and/or e-filing from your refund proceeds, for an additional fee, under an agreement with Santa Barbara Bank & Trust .
Your First Mistake
If you paid your TurboTax fees with your tax refund you’ve made 2 mistakes. First you’ve paid $29.95 for a “refund processing fee.” That was a very dumb idea. You’ve paid $30 for just for the privilege of paying TurboTax/Intuit to take your money out of your tax rebate.
You’re paying $30 to Santa Barbara Bank & Trust to “loan” you the money for your TurboTax payment. Your tax refund then goes to Santa Barbara Bank & Trust and then they send you what’s left over.
Your Second Mistake
Because Santa Barbara Bank & Trust is technically getting your tax refund direct deposit from the IRS, you won’t get your stimulus payment by direct deposit. That’s because the US Treasury doesn’t have your bank information because TurboTax didn’t send it to them.
Because of the timing of the Economic Stimulus Payment Package most tax preparation companies didn’t have a chance to prepare for it. So in TurboTax’s defense, they probably just didn’t have time to make it work.
Your Check is In the Mail
You’ll just have to wait to get your check in the mail like the rest of us. You can check out the updated economic stimulus payment schedule here.
What if I Paid for TurboTax’s Fees Another Way?
If you paid your filing fees with a credit card or some other way, you should be fine. That means you should get your economic stimulus payment by direct deposit. That’s because TurboTax would have sent your account information directly to the IRS.
This assumes you’re getting a refund of course. If you paid in then you’ll get your check in the mail
Categories Banking Government Taxes Time Sensitive
Tags Direct Deposit Economic Stimulus IRS Stimulus Payment Taxes TurboTaxRelated Posts
- IRS Economic Stimulus Payment Article Index
- IRS Stimulus Payment: Direct Deposit Questions
- TurboTax VP Answering Your Stimulus Payment Questions
- Today is Last Day to Change Stimulus Payment Direct Deposit
- IRS Stimulus Payment - Questions and Answers
Comments
229 Comments so far
What you say doesn’t make sense. In my PDF of my 1040A form, section 74 b & d show my banking routing number and account number. So YES the IRS did get my info.
I am confused to..when I checked my 1040a my bank account info was on there not santa barbara. So doesn’t the IRS have our info if it was on our tax forms?
Tracy,
It only matters if you got some kind of RAL, RAC or some kind of other refund advance. It you did then you might want to check with H&R Block.
I also just posted on another thread here and on my 1040 it shows MY banking information, NOT SAnta Barbara bank. And I didn’t get any type of RAL or RAC. Sorry that our ‘DUMBNESS’ couldn’t avoid having to file opting to have the fee takien out, but my family was homeless at the time after foreclosure from my mounting medical bills (I hate when I get a life threatening disease - such a rain on my parade) but I guess it caused the ‘DUMBNESS’ that wanted to take care of my kids as quickly as possible w/o having to use a bottom feeding RAL. Guess that didn’t make much sense?
Sorry to be glib, but please realize that not everyone really WANTS to give these pond scum sucking idiots their $30, they just don’t have a choice sometimes.
Hope we can figure out this mess. I’ll be calling the IRS to see what acct they have on file as some that have used TT have said the IRS has told them they will be getting Direct Deposit. But then again, this is the IRS, and they don’t always know what’s going on either. {SIGH}
well i gues im another “dumba**” that paid extra fees to get my refund back as well, due to the fact that we had some severe flooding in our region and we were out of work, the $$ at the time was much needed, and now im reading all over that us “duma**” people who paid more have to wait longer by getting a paper check rather than direct deposit even though as well as other my routing number and account info is on the copy or my tax return as well, i dont understand how that information is any diffrent from the next person who paid fees upfront, i think this is confusing, and i think that if you used an online service such at Turbotx, hr block etc and had the money in your personal account, we should get dd just like everyone else, now if you used some kind of money card or prepaid card i can understand where that could be a little confusing for the irs and for the business’ who offered the cards, they would probley make matters worse by doing direct deposit on the cards because half the people threw them away when their refund was spent, well i hope this makes sense and i guess we can always keep our fingers crossed for some miracle of a direct deposit, if not happy waiting!!!!!
Me and my husband filed together with a qualifying child and it’s telling me we’re only getting back $900 and my mom filed single with a qualifying child and she gets back $600. We paid taxes because we are self employed. Why aren’t we getting back the full refund?
Heidi,
Have you found anything out from the IRS? I have a similar situation only with Taxslayer. JP Morgan Chase took fees out and the rest was DD. Our 1040 has OUR bank info on it, but that doesn’t mean that is what Taxslayer sent to the IRS. Taxslayer support told me it was not the same as a RAL or RAC and would still be DD, but I’m starting to think otherwise.
I guess if I don’t have a rebate in my acct by tomorrow I’ll have my answer.
Keep in mind folks I use the “dumb idea” much like Dave Ramsey. I’m not going to coddle you and tell you what you did was smart.
Paying fees like this aren’t going to get you ahead in the long run. If you have an emergency you do what you have to do. But like Mr Ramsey, I believe in an emergency fund.
Life’s going to kick you when you’re down as you’ve found out.
I really hate seeing people pay these kinds of fees if they can avoid it. DON’T do it just to get your refund faster so you can buy a new TV at BestBuy. However, as I said before, you’ve got to do what you’ve got to do.
I agree that there should be no difference if fees were paid to a third party from your refund or by credit card (in my case, TurboTax). The IRS DOES have the return on file with the bank account/routing number. If the PDF file I printed and the file the IRS received from TurboTax don’t match (i.e. bank account information deleted), I would think this would be a serious issue and may even raise legal concerns since the return has been altered. As for the dumba** comments earlier posted, does it make me a dumba** for wanting to get my money earlier to take care of bills/vacation, etc? I guess I am a real dumba** by booking my flight earlier and saving over $100 versus if I had waited a few extra weeks.
What i dont understnd is im too am a dumb@@ for using a RAL but i just want to know is that am i getting my check by my ss# or sooner or later.
Lilith,
Yes, I have. And after speaking with the IRS, they DO NOT have my bank info on file for my DD from my refund that was issued in Feb. Since I paid my fees out of the refund, the bank acct that they have on file is Santa Barbara Bank & Trust which is the bank that Turbo Tax uses to process these payments. Apparently they open a ‘dummy’ acct and your money gets deposited into there and they take out the fees and then send the remainder to your bank.
And YES, MY 1040 line 74 HAS MY BANK INFO ON IT!! NOT SBB&T!! So obviously it was automatically changed as soon as I hit then transmit/file button.
I am NOT a happy camper and have voiced my opinion on the TurboTax forums. I feel we were duped.
But then again, I am among the dumb arses…..
We’ve been duped!!! I did the “dumb” direct deposit taken out of my refund because i was short on money at the time, and I find this out… My last 2 number’s of my SS are “92″ so i’m not going to get a check for at least a couple months now.. (insert sarcasm) SUPER!!! Thanks turbotax!
Just because it’s on your PRINTED form doesn’t mean it was on the ELECTRONIC form that was sent to the IRS
Yup, called the IRS to see if I filed my taxes through turbo tax and had the fees taken out of my refund check, will I still receive my rebate through direct deposit. This was the first the representative ever heard about this - so, she just asked for my rounting number to match what they have on file for me. It was not the same. This is turbo tax main rounting number. So, I will be receiving a paper check. This sucks. If we would have only known….
AND THERE IS NOTHING WE CAN DO TO CHANGE, FROM PAPER TO DD I SUPPOSE?
Well, I think this sucks - but I too don’t appreciate the comments about people being dumb for using Turbo Tax! I guess my question is why are ALL these people here looking for money early if they are so amongst the uppercrust that know how to spend their money!!
F*** turbo tax
i won’t use it again
that’s just BS
I talked to the IRS and they told me the same information that the banking information isn’t the one I have on my 1040 and there was nothing now that they could do, they said they could have if it was before April 13th.
I think most of us have learned something I know I did. But hey by the time some of us get our check gas will be $4.50 and then the economy will go to pot.
I found out today 05/02/2008 that if you filed turbo tax you WILL RECIEVE A PAPER CHECK. because its a third party that gave you the money . even though you had direct deposit from the irs.its true… I spoke to the irs several times over this past week.
I am among the ones that did DD through turbo tax. In all the places I have looked before today I haven’t seen anything that says if you used Turbo Tax that you would get a paper check. I should have gotten it on the 28th and desperately need it for my sons graduation.
what about if you used turbo tax, paid fees via credit card… but owe taxes?
also… at the end of filling, turbo tax told us how much we were going to be getting back $1500… so is that wrong… they even asked for a bank routing number and accout number for DD? i am a little confused? i heard that if you owe they will take it out of the stimulus check also? we owe about $1100? but that include federal and state? please help someone!
I don’t expect you to sugar coat your statements but they could have been stated with a lot more decorum. Also, I have a hard time believing what you say in your article when you don’t even use the proper tense of Due/Do in your first sentence.
Ive called Santa Barbara Bank and Trust and they said that anyone who had thier fees deducted from thier refund using TurboTax will receive a paper check. However, if by chance the IRS deposits the money into the account set up for your refund through SBBT they will issue it to your bank account with no additional fees. Has anyone used TurboTax this way and gotten a refund direct deposit yet? Please let us know if you do!!!
Ok, TurboTax didn’t “dupe” you. It wouldn’t even be an issue if it weren’t for the stimulus payments. How do you think they take the fees out of your refund? They get your refund in a bank of theirs, get their fees out, and give you the rest. Wasn’t this supposed to be common knowledge? Read the fine print next time. You’re still getting your rebate in the end.
Chris, unlike you and all the fortunate ones that can ‘afford’ to have that emergency fund handy, this stimulus/rebate check helps those of us that are unfortunately living paycheck to paycheck.
To use the term that we’ve made a mistake about having the amount taken from our return was really uncalled for and just plain rude.
About 80-85% of working class Americans struggle with just trying to make ends meet from day to day, week to week, month to month. When we have money, OUR hard earned money coming back to us, yes we want it as quickly as possible and doing whatever means necessary to put food on our tables & clothes on our backs comes first and foremost.
You need a good swift kick in the butt for that remark!
Ok you turbo tax people…. I have spent countless hours on the phone today asking about turbo tax info…. yes we did rec. our tax refund dd. BUT it went to tubo taxes bank so they could take out there fees then turbo taxs bank dd. our money. Bottom line, ANYONE who used turbo tax will REC. A PAPER CHECK per the IRS.your stimulus check will not go to turbo tax again. we are sol…. and a paper check is a true statement.Good luck to everyone and I hope we can make ends meet until then.my last digits are 58 so I wont get mine until June 20th…
No Im 56 and we should get ours mailed on the 13th
WOw arent we cocky……ARI nothing better to do than be a smart ass.are you sitting on your high and mighty horse rich as can be or struggling like the rest of us.. Im not blonde nor dumb so dont speak to me like I am. Everyone is just trying to get the CORRECT information.If you cant tlak with respect like a human should and not degrade anyone maybe you shouldnt be a part of this conversation….
Thanks lori…. Good luck to you.
Cynhia,
I think you are referring to anyone who used TurboTax and had the FEES taken out of the return. NOT the people who paid for the fees upront with a credit or debit card….they should still get DD, correct? Can you clarify if this is the info that you received?
Call the IRS, if you didn’t use SSB you prob are getting dd if you did on there paperwork it does state that they set up a dummy account and then close it, even though your 1040 said your bank information~~~ Better yet call IRS I am by no mean a expert.
Yeah, Cynthia’s right. Playground rules….If you can’t say something nice - SHUT YOUR NON-NEEDY YAP!!
Did I miss anything?
Laura,
LOL, ‘SSB’! You mean ‘SBB&T’? I have to ask now since you used the initials SSB, do you eBay?
Yes I mean SBB & T~~Come on I am laughing ready these comments.
Ebay is my husbands game not mine unless I want some domestic thing.
Heidi, my understanding is if you had the money deducted from your refund then it will be a paper check. but if you paid for the fees then you should get dd. but please dont hold me to that. call the IRs select option 2 first then select option 3 for stimulus questions. the best time to call is early in the morning or early evening because they are there till 7pm.Ive can only answer those that have had the fees deducted. Paper check is for sure. Good luck
There number is 18008401040
Actually Cynthia, I was referring to the people saying that Turbo Tax is doing something illegal. They aren’t.
As far as high and mighty, I’m not a trust fund baby. I work hard for a living the same as everyone else, and yes I struggle paycheck to paycheck with $0 savings.
OK, take a deep breath, because what I’m about to say won’t be very nice. It’s true mind you, but not very nice:
Yes, if you used SBB&T or some other type of RAL, you were a dumbass. I mean, for starters, you paid a $30 “convenience” fee for something that is otherwise free. Sorry if it hurts your feelings or offends you, but that qualifies you as a dumbass. And as for all of the, “But I REALLY needed the money blah blah blah” whining I’m reading, sorry, I don’t buy it. I mean, if you really needed the money, then you’re the LAST person who should have been willing to pay an unnecessary $30 convenience fee. Did you ever think of that? (This reminds me of my dumb friend who pays $35 bounced check fees every week because, ironically, he doesn’t have any money. Dumb, dumb, dumb.)
TurboTax and SBB&T should just call this $30 fee what it is: “The Dumbass Fee”. And they should call RAL’s what they really are. Instead of “Refund Anticipation Loans”, they should call them, “I’ll Bet You’re So Bad At Managing Money, That You’ll Be Happy To Pay A Dumbass Fee To Get Money Back That Would Otherwise Only Take Two Weeks to Get Back If You Had Even The Slightest Amount of Financial Self-Discipline.”
Seriously folks, if you’re SO close to the financial margins that you absolutely HAD to get your money back immediately, I would suggest that you get a second or third job, or do whatever else you need to do to get on more firm financial footing. But I suspect that many who got a RAL didn’t absolutely NEED the money immediately. Instead, the mere thought of having the money immediately made them get greedy, and they did what American do well: they followed the path of least resistance and immediate gratification.
If you couldn’t tell, I’m a firm believer in financial Darwinism.
Yeah, Steve, you complete idiot! We should bow down and kiss your heels because you haven’t had the hard times that some of us have experienced. Either that or you have been lucky enough to be able to get out of your ‘bad luck.’ Unfortunately Cancer is an equal opportunity affliction and doesn’t necessarily care what kind of life you HAD before it decides to rear its ugly head! GOD FORBID you should fing yourself battling for your LIFE and trying to put a roof over your family’s head after maxing out your insurance and BLOWING THROUGH YOUR ENTIRE SAVINGS (yes, that’s right, we HAD savings!! And a DECENT one at that!!) I guess you’d let yourself or a loved one DIE if the price tag was too high for you!
Glad you showed your true colors….at least we can take your comments for what they’re worth…NOTHING!!!
Heidi YOU GO GIRL….as for you,STEVE YEAH Dumbass,you obvisouly still live with your parents and take everything they give you instead of being in the real world facing reality. SOMe of us chose to pay that so called dumb fee because it put food on our table and a roof over our kids head.You dont have a clue what kind of life I lead or anyone else,I bust my ass everyday and go to work with a disability to survive ,and that 30 fee gave me over 3000 really fast. So respect you know nothing about…stop degrading people for money well deserved and get off your ass and well…. youll probably fail if you havent already.before you open your mouth next you havent hurt any of our feelings it only confirms what asses there are out there in this world without even knowing them,I dont owe you a explanation steve but we deserve what money is coming to us how we get it is our problem not yours.maybe your just pissed beacause your not getting one….. have a great day
Ari, sorry if I hurt your feeling I didnt mean to.I was just trying to help others get the information they needed.sorry for judging you…as a GROWN adult I apologize when wrong…good luck with your rebate
okay i filed with turbo tax but i was able to file for free so no fees were taken out of my check for anything meaning i received my whole entire income tax check by direct deposit does this mean that i will get a paper check too if so i have a long long wait my ss# ends with 78 damn!!!!
someone let me know if you know the answer
Our last two SS# are 18…we should have gotten our deposit by today. We called, they checked our account and then asked how we filed. We filed using Turbo Tax, we paid the fee with a CC and had our refund DD into our bank. Unfortunately, we were told today that a glitch was found in the Turbo Tax software by the IRS AFTER they developed their computer program for the stimulus payments (or something like that) so most banking information was set up for a one time deposit therefore, we will be getting a paper check in 3 weeks. Maybe this will help someone.
Steve,
I agree with you. It is a dumb**s fee. That is exactly what I was saying when I paid it. Just like when I pumped gas in my car today for $3.65. That’s a dumb**s price, but sometimes, people just have to do dumb**s things because they have to. If I didn’t pay for the dumb**s gas, my dumb**s would not have gotten to work to make dumb**s money to keep a roof over my head. Hell, I guess my dumb**s should just resort to begging on the street and not pay dumb**s taxes at all. Steve, obviously you don’t have the ability to express empathy. Sometimes, when you’re faced with a decision like “I have $15 left to my name until my next paycheck. Should I pay this tax filing fee or pay for my kids lunch?” I myself have never been faced with that dilemma. You know why? Because I know better not to let my kids go hungry. I know how to choose what’s really important. If I have to pay a DUMB**S fee to ensure my kids eat for the next few days, that’s a no brainer! I pay the DUMB**S fee. I’m not going to call you names or put you down. Some people just have to go through something and sympathize because they don’t know how to empathize. Right now I feel empathy for you because one day, you will hit rock bottom and you finally realize how rude you were. You’re blessed to have been able to pay the fee out of your pocket. Let’s just hope you can someday learn to appreciate your blessings and put down the less fortunate and claim them to just being “whiners”. Hopefully one day you will understand without having to go through what some of us have had to endure. Good luck to you.
[Post edited to remove profanity]
Ari, you also have my apologies as well if you took my comment personally. It was directed more towards people like STEVE who need to have serious life lessons in humility. Your post was definitely not offensive. It’s too bad that grown ups can’t play nice. Some people don’t have the ability to feel empathy or understand/comprehend human life struggle or pain.
I believe these are also characteristics of some sort of sociopathy…….though I’m not a professional.
I guess the majority of us that came here looking for answers did so because we are in very similar situations for our own reasons that are valid and we shouldn’t have to explain ourselves to anyone. So in short, support each other and ignore the rest. They ain’t worth it. We have bigger things to worry about like taking care of our families.
Thank you to all that supplied useful information on the turbo tax direct deposit issue. There is no such thing as a dumbass when it comes to supporting your family. People like you Steve have alot to learn. If the coutry was not going through harsh economic times and high fuel costs then there would be no need for this extra refund. However, the government recognizes that all middle class individuals can not afford to pay 4.00 per gallon for gas and absorb the high costs of food, utilities, and extra items that have since increased in price. The reason that many of our savings are depleted is because in this struggling economy the businesses we work for are laying people off and not giving raises to cover the sudden cost of living hike. So before you make comments that insult people you should think about what your saying. Because if the government felt this step was necessary to get our economy back to level ground maybe you should give these people a break. Your the one that looks like the dumbass.
What if you didn’t pay a fee, but still used turbotax? I filed my state taxes separately, and didn’t owe ANY money to intuit.
will it still be a paper check?
Alan, If you gave Turbo Tax your banking information and you didn’t pay a fee then you should receive your money through direct deposit. The only people that will get paper checks are those that had turbo tax take the fee out of their refund by using a secondary bank. If Turbo tax gave you a form at the end of your refund that stated that their bank would need to handle the transaction, then you will receive a paper check. Those that had no fees to pay, paid by credit card, or had the fee directly ACH’d out of their own personal bank account will receive the direct deposit as normal. Only the individuals that had to use a 3rd party bank because turbo tax was unable to get their fee any other way will get the paper check. I hope this helps.
First of all Steven, not everyone that used this way is a dumbass. I have used TurboTax for years and this is the first time they did the 3rd party deposit. I paid it because it was cheaper to pay it and do my taxes online than to take them to H&R block or another accountant. Second, to the writer, if you are going to write a story telling people why they are getting their checks through the mail, then you should tell the whole story.
Well, since you are a dumb ass and don’t know the truth, I will tell everyone the real reason behind it all.
The reason that all of these tax preparation businesses set up the 3rd party deposit is because they knew about the stimulus payment before tax season began. Their plan was to give you the RAL for your tax refund and when the stimulus payments come, they would make their real money.
See, they are making nothing off of these Stimulus Payments and they wanted their cut, so they decided to do all of the direct deposits 3rd party and they planned to keep a portion of your Stimulus. A larger portion than the $30 because no one knows exactly what they are getting back and they figured they would pull a fast one on all of us that have used them faithfully for years, or the new customers they have gotten.
The government then found out about this plan and decided that they would not let this happen, this money is to help the ones that have been comfortable who are now struggling rather than make the rich richer. So, this is the reason they are sending the checks to those that have the RAL or 3rd party deposit. The government that so many people hate, was actually watching out for you all and not allowing you to be scammed.
I for one have used TurboTax for years and since they have pulled this little stunt, I will not use them again. Which has cost them 3 customers since I do taxes for myself, my parents and my brother. So, rather than calling the Americans Dumb Asses, why dont you call out the Tax Preparation companies and expose them for what they really are, CROOKS!
Steve, how about just not worrying about everyone and their fees. I find your life goes some much smoother when you just worry about yourself and don’t worry about everyone elses issues. MIND YOUR OWN BUSNINESS!! Help YES.. Criticize NO!!!!!!!!!!!!!!!!
Jump of your horse DA….
I have found this to be true as well. I think that this is just a shame that people need their money and can’t get it. We were first told that we would get it direct deposited, Now they tell us tthis is bad enough that some people don’t know this or even how much they are getting. What they don’t realize is this money is our money and we need to have known all the proper info on this stimulus payment.
Hey there, everyone. I’m a young adult who just turned 25. I have 2 children, both boys…4 and 2. My husband works 2 jobs, one full time and one part time and I work full time as well. Child care is so expensive so needless to say I’m not able to take care of all my bills and put my children in child care, so my parents watch our children while we’re at work. We barely make ends meet as it is because of the poor economy. So needless to say we live off of pay check to pay check.
We, too, as many people have “Emergency Funds in a Savings account” however, thats what it is, emergency funds. So when an emergency comes around you have to dip into those funds and take care of the emergencies. Duh.
So, after reading every one of those comments and the “Dumbass” comments about using Turbo Tax, grow up…get a life…get a family and LIVE. Unless you’ve been working and taking everything you worked for since you were 16 and placed that into a savings acct and still live with your parents and did not have to pay a dime for anything…ie Gas, Car insurance, Car Payment, Cell Phone, whatever…etc…then you must be a lucky SOB.
Myself, I had my car payment, Car insurance, had a job while all through high school to pay for this, as well as having to pay back for my student loans now. Because I work and my husband works, we conviently make too much money for the government to have any kind of help for child care, etc. So, yes. Because of medical bills, gas bills, insurance for the vehichle is a must, utilities like most of the american people out there, working their asses off to just put dinner on the table for their families it is hard and at the beginning of the year, if we are in a hardship, no emergency funds left from either medical bills, a wreck that happened and placed someone in the hospital that only part of our insurance took care of, yes…when given the chance to have our refund direct deposited into our acct at the expense of 30$ then yes, I am going to take it.
Is it just me or would you much rather have 30$ out of a few thousand taken out or sacrifice your utilities or your vehichle at that because you are not ablet to make the payment?
Excuse me, but yes, I will sacrifice the 30$ Dumbass fee…not because I am a dumbass, but because at the beginning of the year when its winter time and my family needs heat, food on the table and vehichles to drive back and forth to work to make the little funds available to take care of everything.
So yes, needless to say, I was expecting my funds to be direct deposited, however, because I used SBB&T I will have my check mailed to me. My husbands SSN is 15, so on the 23rd of May, it will be on it’s way.
So I will continue to wait. Suck it up and live with it, but not without disappointment. We all have a right to be disappointed. All we all knew is that direct deposit + refund = stimulus rebate direct deposited…and now we all know that that is incorrect.
I’ll have to pay late fee’s on medical bills for the time being until I can pay them off when my rebate gets here, probably at the beginning of June or so. Who knows.
But again, this is only my two cents, that doesn’t mean very much, either. I’m just a hard working mother and a wife who tries very hard to take care of her family the best way I know how to and the best way I can.
It seems the posts have gone a different direction.
You would think after all of the complaints - even on other sites maybe SBBT or someone would step it up and maybe find some solution. I do wonder how this is going to affect TT, we filed our taxes in mid Jan so the Stimulus wasn’t even approved, I didn’t even know about it. So with some people I think they were given some type of option of how to get there refund pending the Stimulus~I could be wrong. I too have medical bills and a horrific propane bill also so hey they will get paid off in June(57) but that is my soap.
Thanks for the heads up. I’ve been wondering why my deposit wasnt there. Oh well. Guess it will be christmas in June.
For additional information below is the information right from the Turbo Tax Website that refers to the feature that they have for the user to have the Turbo Tax fees deducted from your Tax Refund when e-filing.
“Will my economic stimulus payment be direct deposited into the same bank account?”
“No. With the recent enactment of the Economic Stimulus Act of 2008, TurboTax does not ask for deposit information for your economic stimulus payment.
Although the IRS encouraged tax filers to elect to have their rebates deposited directly into their bank accounts, some filers will only be able to receive theirs by mail. They include filers who conducted certain financial transactions, such as paying filing fees from the proceeds of their tax refunds, using third parties, such as SBB&T.”
From the beginning IRS said that if you chose an RAL you will get a paper check not a Direct Deposit of your stimulus payment. Apparently this is considered a form of RAL.
I still think it would have been nice for us to know that… even if we filed at the beginning to the end of January when we knew NOTHING about this. Oh well, goes to show you never count your chickens before they hatch, right? Way to go Bush.
Regardless of which software you may have used, all REBATES in which your 2007 tax return fees were paid out of the refund (RALs or Refund Transfers) will be paid by check. It doesn’t matter which software or tax franchise you used. The IRS made the decision that the rebates for these returns will be by check, not direct deposit.
I am sure all software/franchise vendors would have disclosed this had this information been available at the time these programs/services were offered.
If there is any consolation, it is that the IRS is processing the rebates about a week ahead of their original schedule.
For more information on TurboTax and rebates, please visit http://turbotax.intuit.com/support/kb/tax-content/tax-tips/5961.html.
Bob Meighan
VP, TurboTax
Someone asked several posts back about if you paid taxes rather than receiving a refund through Turbotax. If you paid, then you will get a paper check. From the Turbotax website:
“When I paid the taxes owed on my 2007 return, I had the IRS debit my checking account. Will the IRS also deposit my rebate there?
No. The IRS says filers who used direct debit will get their payments by paper check in the mail.”
I paid this year and it sucks that TT asked me at the end of filing my taxes if I wanted my stimulus direct deposited. That lead me to believe it would be and I was hoping for it this week instead of a month from now. Oh well…
i was wondering if i used taxact.com if they are doing the same as turbo tax. my last digits are 16 and havent seen a rebate yet.
This situation applies to all software providers, internet tax sites and tax preparers. If you used a third party to pay your tax preparation/service fees, your REBATE will be paid by check.
Bob Meighan
VP, TurboTax
If you had a balance due and used direct debit, TurboTax would have then asked how you want to receive your tax rebate. Based on your response, the IRS will honor your deposit information.
However, if you filed your return before the Economic Stimulus legislation was passed and you elected direct debit, then you will receive your rebate by check.
Bob Meighan
VP, TurboTax
Hi everyone… I filed turbo tax and had my refund taken from my money due, I was told I was getting a paper check. Today I went to the IRs web page, clicked on wheres my check punched in ss#, filing status and exemptions and BOOM IM GETTING MY REFUND DD MAY 9th. last digits of SS # 58.after talking to the IRS and all of you NO ONE KNOWS what the truth is.Pease go to there web page and do what I did, If your information doent come up it means the IRS has no info on your check.everyone say a good prayer that its no lie. BUT TURBO TAX for me means DD…. good luck. cynthia I will keep you all posted if its there Fri. 05/09
Wow that’s wonderful news Cynthia! Congratulations on receiving yours that soon. However we also used TurboTax and had the money taken from our refund. Our last two digits are 17, which would have meant we’d already had our rebate DD already. Not true as of today.
I went to the IRS website and they still don’t have any information on us or our payment schedule.
I’m not so sure that we’ll be using TurboTax next year. I think SBB&T should have worked with the IRS so that everyone that filed early were one of the ones that received their checks early. Sucks
I called IRS today to see when I would be receiving my rebate check and she told me that they didn’t have my banking information only SBBT info. First, IRS does have our banking info. Second, Turbo tax is going to lose ALOT of customers next year because of this third party SBBT. I won’t use turbo tax again because my check is Not going to be DD only mailed in Late June. This is totally absurd and I think that Turbo Tax and IRS should work together and try to get us our money either dd or expedite the checks to us. People like me are financially struggling and need this check now and not in late June. I am extremely disappointed in both the IRS andTurbo tax. There was no need to have a third party involved with our rebate checks. We should have had our rebate checks DD like we had our refund checks. With the Outrageous prices of gas and groceries we all need our rebate checks NOW!!
I seriously don’t understand why a large majority of people are crying about the dumb comment???? Get over it. We paid ours with a credit card, if we HAD to pay an extra fee ( which we thought was dumb since we could afford not to ), we would. But it didn’t make you get your refund any faster. Paying interest and fees when you are not in the position to be forced to is stupid. Turbotax I suppose was banking on people maybe not noticing that.
Nice post Suzanne!
You said you could not afford the fee. You also said “Paying interest and fees when you are not in the position to be forced to is stupid.”
Yet you used a credit card. I hope it was intrest free, otherwise that would be rather stupid!
karin… I understand that the rebate delay is causing a lot of anxiety for you and that’s understandable. However, it was the IRS’ decision to process the rebates by check for those that chose to use a third party for purposes of obtaining their 2007 income tax refund. Because of the way the tax refund process works, the IRS does not have your actual account information to process a direct deposit for you. The account established for your tax refund was a “temporary” account. It was sort of a clearing account that the bank used to pay your service fees and then directed to your account. After that the temporary account was closed. There is nothing TurboTax or any oother vendor can do at this time. I should also mention that the banks are not to blame in this either.
Had we known during the tax season how the IRS would be processing the rebate checks, all tax software providers could have done a better job of communicating these issues. Unfortunately, that information was not available at the time. (You have to remember that the rebate legislation wasn’t passed until mid-February.)
I hope this information helps and I hope you get your rebate soon.
Bob Meighan
VP, TurboTax
Karin, I think you are misunderstanding how the system works. When you have your fees taken out of your refund, your refund is first transferred to the tax preparer’s bank so they can remove the fees; then its transferred to your bank. That’s how you’re able to have the option of having the fees taken out of your refund instead of paying them upfront.
Because of this the IRS has Turbo Taxes bank information on file for direct deposit, not yours.
I do understand that it is frustrating, unfortunately if you had fees removed from your refund instead of paying them upfront or if you got a RAL, its going to effect your tax rebate. Turbo Tax isn’t doing anything illegal. Its not “absurd,” its just the way the system works. Normally people wouldn’t care about it, except that its holding up their rebate checks.
And for those of you saying Turbo Tax should have “warned you” stop and think about it for a second. When did you file your taxes? Were the rebates even passed through and approved by then?
Also, its not just an issue with Turbo Tax. Its for any tax preparation service that you used a third party to pay your fees with, i.e. paid your fees out of your check. So if you do the same next year with another tax service and we get a rebate, the same thing is probably going to happen.
BTW, I don’t work for Turbo Tax. Its just getting a bit out of hand. It stinks, but it is the way it is.
I understand what you are saying. The IRs nevere told us this they led people to believe that if they filed direct deposit that is the way their rebates would come. Some people still don’t know what is going on. It has not been on the news or most websites. Only the people that took time to call found out. Yes this is crazy waiting on a check to come in the mail. Gas prices are soaring and food. If you are rich yes you can wait. Most people aren’t so the bottom line is. People need their money and want it.
Ari… Actually, TurboTax never gets involved in any of the refund processing at all. This and all fees are managed by whatever third party bank is involved. In our case, we use SBBT.
Nevertheless, I agree with your conclusion that the rules, processes and procedures were put into place well after most people had already filed their 2007 income tax return. As I stated in my earlier posts, software providers would have done some things differently had we all known months ago how the IRS would be processing the REBATE checks.
Thanks,
Bob Meighan
VP, TurboTax
Ari… By the way, I meant to add that it is understandable that people are getting upset about this issue. People have been expecting their rebate checks to help pay bills and offset the higher price for almost everything these days. When the receipt of this needed money is delayed, it can be a very frustrating and anxious time.
Bob Meighan
VP, TurboTax
I too live paycheck to paycheck (with no savings) raising 2 kids with child support that rarely ever shows up (meaning like in 3 years only gotten payment 12 times and never the full amount). I live in a trailer that’s falling down around our ears but we deal with it. I look forward to my refund every year to catch up with bills I’m past due.
Even living in low income I never used the RAL or SBBB&T. You didn’t have the money to start with so what’s an additional 2 weeks to wait for direct deposit? (sorry I’m not gonna call it a dumbass fee/loan - that’s going a bit too far - but I do think it’s not smart to do it).
If you’re low incoming (or military - but then if you’re military and need money there are other revenues within the military, I know I served 2 tours during Desert Shield/Desert Storm) then you should qualify for Turbo Tax’s free filing, thus that would eliminate the need to do a SBBB&T.
I need money as much as everybody else but what is already late isn’t going to be hurting if it waits an additional 2 weeks.
The IRS website have a link to check the status of your stimulus payment (not just a payment schedule), mine is coming as scheduled on May 9th. I used Turbo Tax (and have been for the last 8 years) and have never done SBBB&T or RAL.
I have no complaints about Turbo Tax and plan to use them in the future for my tax needs.
Why is everybody complaining over when they get free money? Needing the money is not an excuse, what would you of done if the government wasn’t going to give a stimulus payment?
There was no intentions to give insult with this comment, I was just making a statement.
If I remember correctly, or I could be wrong but when we filed our 2006 taxes I don’t remember my husband throwing such a stink about paying a fee like SBB&T charged this year. We paid the fee and went with DD. This year however my husband threw a stinker of a fit because SBB&T charged something like $30 or more.
I’m not saying that it was smart OR stupid of us to pay this, if we had had the money to pay by credit card (which we own NONE thank you very much) or that beautiful emergency fund that seems to be non-existent because of raising prices, we wouldn’t have had to go the other route.
I’m not happy with TurboTax or SBB&T or the IRS at this point in time but I AM disappointed in the fact that these three entities can’t work together to get the customers that DID pay those ‘dumbass’ fees their money sooner. I would think that those ‘accounts’ that were used for every single customer could be used again for our DD. Oh but wait….then SBB&T would want more money to process that! F*%$ that, I’ll wait for my FULL rebate amount.
My DD bank information is on my form 1040A. Yet somehow the IRS doesnn’t have my DD information? Yet rather have Santa Barbras bank and trust information? That makes no sense at all.
I feel screwed by Turbo Tax since I was never warned that if I used thier third party banking system that I would further delay my tax stimuli rebate.
Heres what gets me though, and upsets me the most. Turbo Tax will broker you through a 3rd party bank, so they can receive thier fee’s that much faster. The irony is my girlfriend used Turbo Tax and paid no fee’s at all and received her stimulis rebate check today. I used Turbo Tax and paid for there worthless “guide me through” option, and I’m getting screwed for it. You think the fact I paid 30 dollars no less for a guide me through I wouldve at least been warned about future problems dealing with the stimuli checks.
So to summarize: Pimp turbo tax for free and you benefit more then the paying customer!
So TT, regardless of what anyone says is making out just fine, and the consumer is getting screwed. TT got to charge me 30 dollars for a walk through that didn’t help at all and I didn’t even use. On top of that they received thier payment right away for shipping me off to the third party bank. It still took 14 days for me to get my refund back in late February anyway.
So TT sold me on an idea that I should use thier third party banking system and it would somehow benefit me. I feel in more ways then one in the end it screwed me.
YOU COULDN’T PAY ME TO Use Turbo Tax again next year or years thereafter and all my friends and family, even my girlfriend agree.
AND I STILL CAN’T GET ONE SINGLE HONEST RESPONSE FROM TURBO TAX!! JUST ONE RESPONSE PLEASE!! THAT MAKES SENSE!
IF MY BANKING INFORMATION IS ON MY 1040 A FORM, AND TURBO TAX SUBMITS THESE, THEN WHY WOULDN’T THE IRS HAVE MY DIRECT DEPOSIT INFORMATION?!!?!?
due to medical bills and such my wife and I are very tight on funds. We usually seem to run out of money before month. We do not have any credit card debt and have our savings and emergency fund tapped out. I have been very sick over the last few years and it has really taken a toll on our finances. We are always worried about how we are to put food on the table for our children and how to pay for gas for our vehicle. Unfortunately, everyone that I could turn to for help seems to think that I make too much money for assistance. Things are only getting worse. I think that it’s crazy for people to be so upset about the stimulus payments. Yes, it’s perfectly fine for one to be disappointed, but it’s not okay for people to yell and point a finger. I can tell you that right now our bills that are due equal to exactly to the dollar what my paycheck is to be tomorrow. So, my wife and I have no money for groceries or gas. I am hurting for the money, but trust God. I know He will work things out.
By the way- I am 25 years old, have a pretty decent job for my age, have two young daughters (3 and 5), and have a pregnant wife. I know what it is like to struggle and worry for my family. I have been in and out of the hospital/surgery room too much in my life. Please be patient and your money will come.
By the way- I am 25 years old, have a pregnant wife, two young daughters (3 and 5), a decent job for my age and place in life, and have been in and out of the hospital/surgery room too much. Please be patient and your money will come. If anything, consider this a lesson in patience and reliance upon something more than yourself.
Jason,
Because SSBT is who transmitted to the IRS. They set up a temp account(as stated on the documents, I had to pull mine out). I like you had MY information on my 1040 BUT when SSBT transmitted they used there information. I did my return way before the stimulus was approved. Yes maybe if we all knew about the routing information they we all could have called the IRS in the window time there was to change it. Even though I chose to efile through tt I should have read about SSBT part in it, I didn’t used them for the past 4 years, BUT next year will be different.
Sorry I meant Michael not Jason!
Michael D…. I can understand how frustrating this situation must be. You are not alone.
Some of your concerns are addressed by me and others in previous posts, but let me specifically address a few of yours here:
1. The IRS does not have your bank account information. When you elected to pay your fees by using SBBT, the IRS tax refund gets redirected to a SBBT account. They then pay your tax processing fees and send the balance to your account. They manage the refund dollars. All the IRS has is the SBBT temporary account number used to handle your refund.
2. When you use SBBT, we actually receive our fee later than any other payment method. We don’t get paid until SBBT receives your refund. And if your refund is denied or applied to another outstanding debt, we don’t get paid.
3. The fact that you paid for the “guide me” functionality in TurboTax has nothing to do with the payment of your rebate check. This situation applies to customers of all software companies, tax franchises and tax preparers when the customer used a third party to pay their fees.
4. We really don’t market or try to upsell anyone on the third party payment method. We do offer it, however, as a convenience to those who don’t have a credit card, don’t want to use one, or simply like the convenience that the bank offers. There are about three sequential interview screens in TurboTax that explains the payment option. It is our sincere intent that the terms and conditions are prominently explained to everyone. We never want anyone to feel misled into purchasing something they don’t want or need. And in fact, we do state that this is an optional service.
5. Please remember that the REBATE legislation was not passed until mid-February and that the details of how the IRS would be processing the rebates did not come until almost the end of the tax filing season.
I hope these facts help you understand the situation.
Bob Meighan
VP, TurboTax
I filed turbo tax but the IrS web page says Im getting direct deposit this Fri,. is that true? or is it because that was my anticipated date. Should I expect it or am I being played. Two more days to see I guess. cynthia
As long as you did not use the services of SBBT, you will receive your REBATE check by direct deposit. That is assuming you selected direct deposit for your income tax refund.
Bob Meighan
VP, TurboTax
Excuse me, I would just like to state that “DUE” is correct in the first sentence. That’s a shame, really. Don’t correct someone’s grammar to the point of discounting the rest of what they have to say based on your own grammatical skills unless you know you’re correct. And by the way, the “you’re” is correct over “your” in that context. What he has said is 100% completely correct and there is absolutely nothing you can do to receive direct deposit. And I always thought so highly of Turbo Tax. Thanks for the information.
I did rec. it direct dep. but I also went to The IRS web page and input some info and it said I will rec. it FRi.DD.but I used turbo tax. I copy and pasted teh IRS note stating that but Im not sure. Everyone else who used turbo tax is paper check. are the editions we used like deluxe make a difference?
How do I know if I uses those services? that bank?
Cynthia… This situation applies to all taxpayers regardless of which software, online service or tax preparer you used. Your rebate check will be mailed to you if you paid your tax preparation fees from the proceeds of your income tax refund. If you did so, you would have used a bank to facilitate the payment of these fees. To keep this simple, if you used your credit card to pay your TurboTax fees, then you are fine. You will receive your REBATE check by direct deposit.
And just to correct your last comment, if you selected direct deposit for your income tax refund and you paid your tax preparation fees by credit or debit card, you will receive your REBATE by direct deposit. This applies to TurboTax users and all others who used tax software or another tax service.
The IRS’ decision to mail paper checks to those who used a bank product to pay for their preparation fees or RAL (which TurboTax does NOT offer) was not directed specifically at TurboTax but at everyone. See my post above for more information on this. I’ll also post another version after this one.
Bob Meighan
VP, TurboTax
It’s unfortunate that those who used a third party for refund/payment processing of their 2007 tax return will be receiving their REBATE by check. However, this is a decision the IRS made (and for valid reasons… see below). It applies to all taxpayers regardless of which tax software, online service, or tax franchise you went to. If the return’s refund or the payment of fees were handled by a third party, that means your REBATE will be by check.
Had the tax software companies and tax franchises known how the IRS would be processing the rebate checks back in tax season, I’m sure we all would have handled this differently. Remember, the rebate legislation wasn’t passed until mid-February and the details on how the IRS would be processing them didn’t come for many more weeks after that.
If there is any consolation for those in this unfortunate situation, it is that the IRS is about a week ahead of their original schedule.
For more information on REBATES and TurboTax, please visit http://turbotax.intuit.com/support/kb/tax-content/tax-tips/5961.html.
As to why the IRS decided to send rebate checks to these taxpayers who used third parties, here is why. When you make the election to have your fees deducted from your refund, the bank sets up a temporary account used only to receive your 2007 refund from the IRS. The IRS sends the 2007 income tax refunds to the temporary account and the bank then transmits the net amount (after deducting any fees) directly to the your actual bank account. Because the IRS does not receive taxpayer bank account numbers under this method, it cannot match taxpayers with their current bank accounts. That’s why the IRS decided that taxpayers who entered into financial transactions with third parties will get rebates by mail. This also applies to taxpayers who used “refund anticipation loans” or RALs (loans made to tax filers against their expected refunds). TurboTax does not offer RALs.
Bob Meighan
VP, TurboTax
See bob mine payment came in as a ACH so I was unaware of the RAL It still doesn’t make sense they didn’t put the money in until the IRS put it into the temp account so I thought RAL was loan type of deal.
Whats ironic is that all of these problems and TT may loose customers regardless of why. I did my taxes in Jan so I wasn’t aware of the Stimulus situation. I guess for me or anyone to complain isn’t going to change anything but it is a let down.
Laura… What some people fail to realize is that many taxpayers had already filed their income tax return by the time the legislation was even signed (Feb. 13). It wasn’t until almost the end of March before the IRS provided guidance in how the rebate checks would be processed. It would have been great if we all knew back in January what Congress and the IRS would be doing later in the season, but that’s just wishful thinking.
I know the IRS worked incredible hard to get the rebate checks moving quickly. Unfortunately, there were some unintended consequences as a result of some of their decisions (and I’m not saying their decisions were bad).
Bob Meighan
VP, TurboTax
Did they move up the date for the checks like the Direct Depo.
Bob,
How did you get involved in this website?
Laura… I believe the IRS moved up the initial dates for direct deposit by 5 days. However, I would not assume that all future dates will be accelerated, but it is a good guess that they will be.
I found this website simply by “googling.” If customers/taxpayers have questions, I’m happy to answer them if I can. With the rebates, there has been a lot of misinformation and confusion. It’s understandable given that most people had already filed their return before the REBATE legislation and it’s implementation details had been communicated.
Bob Meighan
VP, TurboTax
See, after reading all of this information and everything, I sincerely understand that I WILL BE recieving my rebate in check form because of the fact that I did not pay for my due’s by a crc or what not. At that time, I didn’t have any, however, that is beside the point.
The weird thing is, my husband is primary on our taxes because we filed together. A few weeks back, I recieved in the mail under my name a letter stating that we would recieve the rebate on 05/16/2008 by direct deposit.
The thing is, my last 2 of my ssn is 87, my husbands is 15. He is the primary, not me. We used TT and had our dues taken out so that would make it so it would be paper check…but why did I get a statment from the IRS stating that we would recieve our rebate on the 16th by DD?
It’s just all confusing, simple, but confusing, and I’m not one easily confused. All I know, is that sooner or later, if not by 05/16/2008 Direct Deposit, then by 05/23/2008 Paper Check, I will recieve my rebate.
Although, there are errors or quirks rather that wasn’t completely thought out…it is a good thing for us to be recieving the rebate. I mean, it is free money, ya know? It’s just not coming when we expect it, but nevertheless, it will be here =) Heck, Maybe by christmas =)
I just wanted to say one thing real quick to Bob Meighan VP, Turbo Tax. You keep saying that it is all ” software companies, tax francheses and tax preparers”. This is not true. I know people that went on-line and used H&R Blocks free software and they have already gotten there check DD. I am noticing that anyone that used H&R Block got there money REALLY quick DD. I have been using TT for about 10 years now. I will not be returning next year to TT I think I will go with the more trusted name H&R Block. I am finding that is only the people who used TT that are having the problems not all software companies, tax franchises and tax prepares. Last I check H&R Block falls into two of those catagories, and there customers still got there money. NO MORE TT FOR ME!!!!!!! This will be a loss of about 6 customer on my part.
Becky
I don’t understand what this ‘letter’ is that everyone is talking about from the IRS. Neither myself or my husband has received a letter of any sort from them so I’m not sure what is going on.
I do know that when we’ve gone to the IRS website and calculated or tried to see if we were getting something it states that we will be getting our $1200 but doesn’t give any specific information as to when we’ll get it. Unfortunately it’s by paper check since we went through TurboTax and they used Santa Barbara Bank & Trust as their 3rd party, otherwise we would have gotten ours already. In the first batch of DD no doubt, now for paper checks it’s looking more like the end of May early June. *sigh*
bob, nice job…you answered everything like a good VP should. your boss should be proud, very dipolmatic…informative and matter-of-fact. it isn’t TT’s fault…how could you have known? but as they say “i guess that’s why they pay you the big bucks”. just know this, i’ve been with TT for 7 years, and i’m fairly please with the service however i will more than likely go to another means of filing next year. especially if i find out that there were people who used H&R free online software and had no problem. if i don’t find this out i’ll switch anyway just to be a part of the free market system. looks like you got a PR nightmare on your hands and this train is gonna keep rollin. good luck to you, i’m sure you have the emrgency fund and don’t need the rebate but perhaps a new job in the following months…but it’s not your fault, or the irs’s, or the banks…it’s just the way the chips fall.
I am one of the unlucky ones that was supposed to have my DD this week, but now I will wait until around the 20th of June to see it. I still feel cheated, and this is why.
Bob of TurboTax states a few things here:
-TurboTax does not offer RAL’s.
-The stimulus details were finalized at the end of March, leaving not enough time to get a system in order to work with the IRS.
Here is what I see on my end.
When I check my bank statement, I see an entry for my federal tax income refund, and it is CLEARLY marked as an RAL from the RAL DEPT of SBBT. Also, the dollar amount I received from SBBT is shy of the final amount I was told I would receive after all TurboTax and SBBT fees. So… I see 2 red flags right there.
I also see an entire month’s time from when the IRS finalized the stimulus plan details to the time they started sending out direct deposits. I’m not sure about many of you, but if there’s a problem with this scope and magnitude, that obviously affects way more people than just a few, you have one whole month to figure something out and implement it.
If something like this happens and the time passes and NO ONE IS NOTIFIED of what’s going on until after the fact… jobs are lost… at least in my industry (financials, go figure).
I appreciate all the goodwill here, I really do, but at the same time I still feel cheated. I feel this way because in the month everyone had to figure something out, nothing was done, and NONE OF US WERE NOTIFIED. I also feel this way because the information we are receiving is still conflicting. TurboTax telling me they do not do RAL’s and then seeing an entry for a federal tax income refund RAL on my bank statement kinda gets to me.
I truly believe that it would have been in TurboTax’s (and everyone else’s) best interest to at least let us know of a potential problem, rather than finding out by simply not receiving our stimulus payments. It might have been able to save them from the sizeable loss of business they are sure to incure from this, even if it is not directly 100% their fault.
Just my two cents.
Becky… There is a lot of misinformation out there and I’m glad to help clear it up. Your suggestion that it’s just TurboTax is absolutely not true. It affects all taxpayers regardless of how you filed if you used a bank product. The IRS just released additional information today and here is a direct quote from that news release:
” Q. I chose direct deposit for my 2007 tax refund but also requested my electronic filing and/or tax preparation fees be deducted from my refund. Does that affect my stimulus payment?
A. If you requested that your electronic filing or tax preparation fee be deducted from the amount of your refund, you have entered into a financial agreement with the tax preparation provider or e-file software company for a refund anticipated check (RAC). Both Refund Anticipation Checks (RACs) and Refund Anticipation Loans (RALs) are bank products. The money that is deposited into your bank account comes from the financial institution associated with your electronic filing software provider or tax preparation provider, not directly from the IRS. Taxpayers who use RALs, RACs or enter into similar loans or financial agreements with their tax professional or tax software companies will not receive their economic stimulus payments by direct deposit. Instead they will get a paper check that will be issued according to the schedule that has been published for paper check distribution.”
This is from IR-2008-70 dated May7, 2008. Here is the link for those that wish to read the latest from the IRS: http://www.irs.gov/newsroom/article/0,,id=182735,00.html.
The vast majority of TurboTax customers will get their rebate check based on the regular IRS processing schedule. The exception applies to all taxpayers who used a bank product.
I hope this information helps.
Bob Meighan
VP, TurboTax
I know this is all very confusing and frustrating. But is Turbotax really to blame? I mean if they had known of the stimulus when they updated their software for 2007 they could have possibly put something in there so we who paid our fees from our refund could still get DD. As far as switching, I will not. I have filed with TT for three years now and got my refund in less than 14 days for less than $70. Before that I used another company, no name mentioned, it took them 45 days to get my refund to me because of their mistake and I still had to pay over $300…their mistake and they would not refund any of the fees. The same year my husband, fiance at the time, used aanother company not mentioned and they told him he could file head of household when he lived with his mother because he paid half of the bills. This was not true and he had to pay the IRS back $4000+. Besides, this economic stimulus is probably a one time thing and Im sure if it isnt the companys such as TT will update their software to allow for DD no matter how you choose to pay your fees. I am frustrated too because I have four children and I was looking forward to this money but I cannot blame TT or SBBT…they have been great and I will continue to use their services!
Well..if i used turbo tax but did it for free am i entitled for dd? my last numbers are 62 so by this friday i should have $600?? i did get the letter back in march stating i was eligible.
oh and i did learn that if the tax the took out was less than $600 you get that amount..thankfully they took out at least $1000 dollars for taxes so i get the full amount [just incase people were wondering how they figure the amount they get]
My daughter and myself used TT and had fees taken out of our refund and will be getting paper checks. My daughters fiance used H&R Bloack and had fees taken out of refund and got his today which his ssn ending in 54 was not expected yet even if he was getting a DD. Seems this did not affect H&R Block users even if they elected fees withheld from refund?
ChrisW… TurboTax has NEVER offered RALs. I believe the description you see from SBBT is just their generic merchant transaction description that accompanies all tax bank products they offer. But again, TurboTax does not offer RALs.
Even to this day, we continue to receive updated information from the IRS on the processing details of rebate checks. Had we all known the specific details of HOW the IRS would be processing rebate checks back during the tax season, I am confident we would have communicated this to everyone.
I appreciate your two cents Chris and I can certainly understand why you feel cheated.
Bob Meighan
VP, TurboTax
No more TurboTax… Thanks for your comments. We also offer a free TurboTax solution (we were the first and provided over 2 million free this year alone). Anyone using the free product would not have been affected because with free there would be no reason to use a third party bank to pay your fees (since it was free).
Once again, I think it’s worth repeating that this situation affects only those taxpayers who paid their tax preparation fees (whether it was software, online or a tax preparer) from their refund (even though they selected and received their tax refund as a direct deposit). This specific group will receive their rebate via a mailed check.
Here again are two very specific sources of information from the IRS that describes the topics in this thread.
http://www.irs.gov/newsroom/article/0,,id=182734,00.html
http://www.irs.gov/newsroom/article/0,,id=182735,00.html
Bob Meighan
VP, TurboTax
Hey Bob, I got a nice one for ya. I filled my taxes with turbo tax on jan 31 2008. There was no news of the stimulus plan then was there. I have used turbo tax for a long long long, how about everytime I have filled since I was no longer a dependent. You are all right about the no Ral. Not once have you offered this. When you e-file it takes 10-14 days to get you refund, but for the last 5 years it took me 10-14 to e-file with you. I wouldnt call that a Ral would I. The next time you want to give to us like that, use some lube.
I agree with you Steve you are all complaining about how turbo tax did something wrong, first of all you went to them they didnt come to you, second of all if you read the fine print then maybe you wouldnt be in this situation. Complaining about it isnt going to fix it so let it be. I used H&R BLOCK and paid my fees with my debit card on the same day. But there is no reason to be mad at turbo tax because they did not force you into it, you took it upon yourself to use them. But I bet Turbo tax will lose alot of customers because of this.
Greg Shank… I’m not sure what your point is. You say e-filing takes 10-14 days and that’s been your experience with TurboTax. That is the expected IRS turnaround time on e-filed returns. Regardless of who you use to e-file, the IRS still processes all of those returns in a “first in-first out” basis.
RALs are actually loans you take out against your tax refund. As you correctly stated, TurboTax does not offer RALs and we have no intention of doing so.
Bob Meighan
VP, TurboTax
Hi. I filed my taxes on April 11, 2007 using turbo tax with direct deposit and i didn’t pay anything to file. I was also eliglibe for a rebate of $300 and I received it by direct deposit on May 2, 2008. i’m assuming if you do not have to pay turbotax to file it, your info is sent directly to IRS and IRS sends your money dirctly to your account not turbo tax’s account since there’s no fees to pay Turbo tax. Maybe…
Renee… You are correct as evidenced by the fact that you received your rebate on schedule.
And just to clarify again… Any taxpayer who elected direct deposit for their tax refund but used a bank product to pay for their fees or obtained a RAL will have their rebate switched to a paper check. This is true regardless of how or who filed your return (in other words, this is an issue that affects all, not just TurboTax customers). This is pursuant to IRS. If you paid using credit card, debit card or received the services for free, you will receive your rebate based on how you received your tax refund.
For more information, please see:
http://www.irs.gov/newsroom/article/0,,id=182734,00.html http://www.irs.gov/newsroom/article/0,,id=182735,00.html
Bob Meighan
VP, TurboTax
Bob,
I appreciate your comments here, I want to say that first and foremost. I understand that you’re here trying to give people useful information and it’s good to hear it from the source.
Cherrie,
I think you are reading into this wrong. We as a whole are not in reality “blaming” TurboTax for this problem. Anytime the Federal Government gets involved in ANYTHING, it gets screwed up… ESPECIALLY now that we have a Democratic Congress (let’s not go there, it is what it is).
We’re mostly saying here that it would have been nice to know this before it happened. People started getting DD’s on the 28th of April, and the details of the stimulus payment started trickling down to tax preparers and tax payers alike as of late March.
We should have been notified then that there is a possibility of a potential problem receiving our “rebates” if we used a bank product.. which, by the way, the more you think about it, you’re paying two organizations to file your free taxes. You pay SBBT for just the privilege of paying Intuit’s fees.
I have since confirmed with 3 separate individuals whom I personally know that H&R Block is not having this issue. All three of these people had their fees deducted from their refund amount and then direct deposited into their bank accounts, and all three of them have already received their stimulus payments via direct deposit.
I also know of ONE person, once again whom I personally know, who used TurboTax and had their fees deducted from the refund (meaning SBBT handled it) and THEY received their stimulus payment this morning via direct deposit.
Fact of the matter is that we have been duped. Once by our government, who didn’t think of this issue before-hand, and once by our tax preparation companies for not warning us when they learned of the stimulus payment process.
You are correct about one thing, though. None of us can do anything about it by complaining, but we are entitled to voice our opinion on the issue.
The truth is…Not everyone will be getting the total amount that they are expecting, the rebate is based on your tax liability. My boyfriend and I both filed through TurboTax, using their free file software. It was completely free. He is getting his tax rebate direct deposit tomorrow. However, due to me filing an ammended return, mine will be mailed out on May 16th. The numeber to call to find out the exact amount of your rebate and the exact date for it to be mailed or direct deposit is…1-866-234-2942
Hey Greg you are funny but right, I don’t think 10-14 days is RAL, that seems like the average time for direct deposit. But everyone should call and complain to the irs and also turbo tax for not explaining what was going to happen with your rebates. But the more you complain the more mad you will get, and that is not going to solve the problem.
As far as complaining to Turbotax…most people had filed their refunds before the economic stimulus plan had been thought of. So what good would it do to complain to them? Second, as far as H&R, I have learned that upon approval of the stimulus, they were able to update a software program to allow the dummy accounts they use to remain open for direct stimulus payments. They also use a different bank for thier funds that was able to work with them to see to it their customers got DD. But with H&R I also learned that the fees for their service, according to a friend, are almost double that of Turbotax. No matter what, the only one to blame for the confusion is the government. They should have came up with this plan early enough that all of the prepartion companies could adjust. This stimulus was created to improve the economy so why did they wait so long to do it. Either way, Im happy Im getting something and I will get it when I get it.
By the way, I talked with someone who filed Turbotax and got thier fees deducted from thier return but still got DD. Somehow she ended up having to mail her return and thats how the IRS got her info. I still dont understand how if she mailed it she had fees deducted but maybe thats what the catch is.
I just got my stimilus check direct deposited into my account. I used TaxAct.com, which I thought was a lot easier (and cheaper too if I recall) than TurboTax.
They electronically file your Fed return for free with the option for DD and charge a fee of like $13 to electronically file the state portion. I went ahead and got that service too which I paid for with a separate CC. In fact, I’m not even sure they gave me the option of having it deducted from the state refund. I don’t think they did, because I probably would have used that option. Who wouldn’t, right?
Anyway, good luck to all. I hope you have a low ending SS# and a consciencious mailperson.
To,
Bob Meighan
VP, TurboTax
Thanks Bob for taking the time to answer all the questions concerning the Stimulus Payment. The information is greatly appreciated. I’ll for one will be using Turbo Tax again.
Rob
I will apparnetly be the last person in America to receive my stimulus check. Weeeee.
Chris- thank you for posting this info, it helped me a lot today, it mostly helped me learn a lesson.
I almost had a heart attack today when I checked my bank account and saw no DD of my stimulus check. I frantically did research for the last 2 hours (here at work no less) and have finally learned my ‘mistake’ in opting to pay my Turbo Tax fees out of my refund. This is the first year I did that it will certainly not do it again, especially because I am one of the lucky ones that didn’t need to, I could have paid with my cc. So now I will be getting a paper check towards the end of June instead of today, which isn’t the end of the world. I’m more mad at myself as a consumer for not being smarter about this situation. I also get nervous with paper checks because, well because I get worried I won’t actually get it. Either way, my one complaint is this. TT could be a bit more proactive in CLEARLY disclosing that if one chooses to have their fees taken out of their refund, that they are actually paying 2 fees, one for the use of TT and one for SBB&T to ‘house’ your refund before DD into your checking account. I think it’s kind of crappy that any kind of charge like this exists, but I supposse, this is how money is made. I also think the IRS very likely knew that this type of scenario would happen and also could have ‘worked with’ SBB&T to avoid this situation, knowing that so many people use TT and so many people would more than likely choose to pay their fees out of their refund. Nobody should have to ‘pay’ to get their own refund. I guess it does end up being the price we pay for convenience.
My last comment is this. At least we are getting some sort of money from the government. Be thankful for that at least. Even if it’s just a small rebate, it’s more than any of us had before.
Thanks again for a lesson well learned!
For all of you who have heard that you will receive your payment by paper if you used Turbo Tax and received DD thru SBBT. ITS NOT TRUE. I received my payment this morning ON TIME and I received my refund via SBBT. Since I was freaked out by when I read all those postings, I just thought I would let people know.
You used SBBT? My husband and I used SBBT through turbo tax too, and you recieved your money DD?
yeah for jocelyn for bringing the people some hope!!! I hope works out for everyone.
Yes I used SBBT with my refund and yes I did receive the stimulus DD. After researching the internet yesterday, I was sure that I wouldnt get it. But First thing this morning it was in my account.
Jocelyn- I wouldn’t go as far as to say it’s not true people won’t get DD from SBBT, obviously MANY of us haven’t gotten our DD so there must be some truth to the fact that many of us are getting it via paper check. Did anyone using this site happen to contact SBBT to see what they had to say about this issue? I’m curious if they are confirming that anyone you used TT and went through them will be getting a paper check.
I used Turbo Tax and paid upfront for the charges. My check was direct deposited on the correct date.
I just called my bank, no money!!! Sucks!! I guess some are just lucky, I honestly don’t think anyone truly knows when your going to get them.
I think Danielle might be right. But for what it’s worth, for everyone who is in this same predicament, I just visited the IRS website again and they have updated their site with ‘more FAQ’s’ and they do address this issue and state that if one used a third party bank to process the fees right from their tax refund, they in fact will not get a DD rebate but will instead get a paper check rebate and it will follow their schedule for mailed checks. So the last of the checks will be mailed by 7/11. It kind of stinks but again, at least we’re getting some money. Hope this info helps!
I agree beggers can’t be choosers. I just had my hopes for today!! OH well!!
This is totally BS that today I find out that I will not get my rebate on the 9th. I had TT take out the fees from my refund. If I would have known that this was going to happen I would have used my CC. TOTALLY BS! This is TT’s fault and all tax software not sending the BANK infomation to the IRS. Something should have been put in place to tell everyone about this!
I have so many things I was counting on this money for and now I will be totally SOL until JUNE27 or after(67). WHAT A CROCK OF SH….T!!!
I WILL NEVER USE ANY OF THIS BS TAX SOFTWARE AGAIN! THIS IS JUST WRONG!!!
I just copied this from the SBBT website and would like to know how any of you that had your fess taken from your refund got a DD? What did you do different?
SBBT INFORMATION
If you qualify for an economic stimulus payment and if you used SBBT to pay your tax preparation fees from your refund, the IRS will mail the economic stimulus payment directly to the address on your tax return. Your payment will not be direct deposited. For more information on the economic stimulus payments, go to http://www.irs.gov or call 800-829-1040.
Crystal I read that to, and was wondering the same thing? Im done worrying about it, I guess I will get it, when I get it!!
I just read that pop-up on the SBBT website and dont see how anybody that had fees deducted from their refund, after reading that, would get DD. Doesnt make sense. My friend got his last Tuesday, but of course his ssn was 02 and he used his CC through somebody other that TT.
I just cant believe all of this. Very frustrating for myself and all of those in the same position. Im just beside myself about all of this. With my luck, I wont get a paper check neither. My sons birthday is tomorrow and this does throw a wrench into our plans…
I guess the bottom line is our economy sucks!! Everything is going to s****!!! Gas prices are outragious!! Its just freakin ridiculous!! There needs to be a revolution!!
Yeah, it does stink. We’ve had our hopes up thinking that we were going to get our DD on 05/02/08 and then when they said they were going out a week early, oh man, did we ever get our hopes up…as push comes to shove, we’ve not recieved it yet, but as previously stated up there…I do know it will be by check. My husband is primary (15) so we will be getting ours hopefully on 05/23/08 … well, it will be mailed that date, but no telling when we will actually get it.
We were thinking we would be getting 1800 back because of our 2 children, however, it seems we will not be recieving that amount, but only 1200…that puts a bit of damper in our plans, too. We received the child credit on our taxes and what not, but for some reason, it seems that the IRS thinks we don’t need the extra bit for the children. Who knows, quirky is what term i’d use. Very fickle!
Oh well, i guess a little bit is better than none at all.
Melinda,
The amount you recive is based on the two children and what you actually paid into taxes. Thats probably why its less than you thought. We thought originally we would get $2400 ($1200 for us and $1200 for our 4 children). According to the calculater we will only get $1800 ($$1200 for the kids and $600 for us because we only paid $533 into taxes). It is based on the tax liability so keep that in mind.
A few posters above claimed to have used TurboTax, paid their fees using the services of SBBT, and received their REBATE (not the tax refund) via direct deposit. We have checked with SBBT and IRS several times and they tell us it cannot happen. They do not know of a single case. They say these rebates will be mailed.
I believe what MAY be confusing some is that they are just receiving their tax REFUND now and believe it to be their REBATE. This is just my speculation because no other circumstances could explain this. This would be the same for all others who used other software in conjunction with a bank product and claim to have received their REBATE by direct deposit. Confusing? Yes!
I’ll repeat again for those who may not have read my much earlier comments on this issue. Had we known during tax season what we now know about how the IRS is processing REBATES, we would have done some things differently. If you’ll remember, many of the mechanics of how/when tax rebates would be processed weren’t finalized until almost the end of tax season.
Bob Meighan
VP, TurboTax
I think a person would have known if it was a tax refund or stimulus package!! lordy jees!! Were not stupid!!!
OK I am going to post this one more time. I file thru Turbo Tax. Had my filing fees taken out of the REFUND, and my refund came from SBBT.
I was NOT expecting my REBATE today beucase of that and all the info I had read. BUT I did receive my REBATE today - ON time and so did my mother, who also filed the same way I did.
I dont know how, but my money WAS there, so obviously they can do it.
Jocelyn… Congratulations. Perhaps you could call SBBT and give them your information so we can find out what is going on (because they tell me it should not be happening). If you do call them, pls have them forward the information to Doug B (SBBT) and tell them that I made this request.
Thanks,
Bob Meighan
VP, TurboTax
Tom,
I understand that you’re upset, but calm down a read through the other comments first. While it may suck, its not the fault of the tax preparation companies. How were they supposed to know that this would happen when the rebate legislation wasn’t even passed before people started filing their taxes? You can’t tell people something you’re not aware of. Like it or not, its no one’s fault but the IRS, surprise surprise.
Bob Meighan,
If you get that information could you pass it on to me? I also received services from SBBT…Thanks!!!
I will do that.
By the way, if anyone believes they received their rebate by direct deposit AND they used SBBT to pay their tax prep fees, please call SBBT with your details. Ask them to forward that information to Doug B.
Thanks,
Bob Meighan
VP, TurboTax
I would like to know too, I also had direct deposit through SBBT. I apologize for being rude earlier, just a little frustated!! I understand its not turbo taxes fault!! Thanks!!
What is the benefit of using Turbo Tax? If anything this Stimuli problem has helped me to learn a lot and I feel like a smarter consumer for it. You can’t send money in exchange for that.
Think about it. If you used Turbo Tax FREE EDITION you will get or have received your stimuli check by direct deposit on time or early.
HOWEVER, IF YOUR A PAYING CONSUMER you basically got screwed, whether its the IRS or Turbo Tax.
Turbo Tax doesn’t offer RALS?!?!? Then why do thousands upon thousands of users have “SBBT RAL DEPOSIT” showing up on thier bank statements?
Call it what you want, but were being penalized for using and paying for Turbo Tax direct deposit. Whether yous ay its a RAL or not, the government views them that way.
Worst of all is there are dozens of FREE programs the IRS guides you to use that work better then Turbo Tax. I had to wait 14 days to pay for e-filing with turbo tax, when I couldve waited 14 days for free. THERE WAS ABSOLUTELY NO BENEFIT OF USING TURBO TAX AT ALL!! I along with any users out there facing this problem with the stimuli check, just used a free program the IRS has been posting about for a few years now, none fo us would have this problem. Unfortunately we were blind, opted to pay for what is free, and are suffering for it.
Thousands upon thousands of users in the past few weeks are vouching to never use Turbo tax again, and I’m sure when the smoke clears anyone who does should be smart enough to use it for free now, since there is no benefit to paying!!
So I ask you Bob, to the consumers you can salvage, What would you tell them is the benefit to using Turbo Tax!?!?!?!? What does Turbo Tax provide that isnt free nowadays and backed by the IRS no less?
Turbo tax is obsolete, I know that now, and a delayed stimuli check was totally worth it, since knowledge is truely power.
Michael
To summarize my point.
I se a stock I like, I can buy it for 5-10 dollars through Schwab. I can also pay a broker 75 dollars or more minimum. (much higher, usually 5 percent) What do you think is the smart choice?
I can pay Turbo Tax to broker my direct deposit and get it within 14 days through some third party bank which obviously comes with consequences, or I can use the free programs the IRS provides and know I am dealing directly with the IRS. What do you think is the smart choice? (Oh i get it, I’m paying the 30 dollars to receive it faster? Then why don’t we get it faster? On top of that I’m paying 30 dollars for a guide me through which was 100% worthless, and neded a 9.95 upgrade to protect its own mistakes!!
Turbo Tax is a joke and obsolete, just use the IRS information on how to do taxes yourself, FOR FREE!
By the way Bob, I will not stop using Turbotax. They are great and they could not have known of all this confusion when the 2007 se