02/12/2025
Let’s Talk Tax Refunds: Important Reminders Before You Accuse Your Tax Pro!
With a large number of refunds dropping in the next few weeks, let’s go over some key reminders to avoid misunderstandings and false accusations against your tax preparer.
1️⃣ Understanding Fees – If you chose to have your tax prep fees deducted from your refund, remember that additional bank and admin fees apply. If you applied for a cash advance, there’s another fee added on top. The total you see isn’t just what your tax pro charges—it includes bank fees too.
2️⃣ State Refund Deposits – If you had fees deducted from your refund, your state refund may also be deposited by the third-party bank. If your state refund arrives before your federal refund, the bank may apply it toward any outstanding fees or cash advance repayment. When your federal refund hits, it may include both your federal and state refund. If you're unsure, check with the third-party bank or your tax preparer.
3️⃣ Government Debt Deductions – If you owe the state, child support, student loans, or defaulted on a previous cash advance, your refund may be offset. This has nothing to do with your tax preparer’s fees. If your refund is taken, you may still owe your preparer. Call the debt offset line at 1-800-304-3107 before assuming your tax pro has taken your money.
4️⃣ Cash Advances – If you received a cash advance, the bank will deduct that amount from your refund. Yes, your tax pro still gets their fees, and the bank gets theirs.
Let’s all stay informed and avoid unnecessary stress! ✅💰
