Drake Tax – Banking Refund Disbursement Options

Article #: 13314

Last Updated: October 28, 2024

 

Tags: Drake Tax

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Refund Disbursement Partners

In Drake Tax, you can distribute a taxpayer's refund via the following methods:

  • Drake Tax banking partners – Federal refunds and combined federal and state refunds

  • IRS – Federal refunds

  • State or locality taxing authority (such as a department of revenue) – State or local refunds

Banking Partners and Disbursement Options

Drake Software partners with several banks to offer bank products. Banking partners include:

  • EPS Financial

  • Refund Advantage

  • Refundo

  • Republic

  • Santa Barbara Tax Products Group (TPG)

Caution  Bank products must be selected in data entry and all forms signed by the primary taxpayer (and spouse, if Married Filing Jointly) before the return is transmitted. You cannot stop or retrieve a return that has been transmitted. Bank products cannot be used on amended returns.

Available bank product refund options include the following disbursement methods, summarized in the chart below:

  • Paper check printed in the tax preparer’s office (or on the bank's website, in some cases)

  • Direct deposit into the taxpayer’s bank account. Refunds from a bank product can be deposited into a single checking or saving account only. There is no option to deposit the bank product into multiple accounts at this time.

  • A pre-paid debit card that is funded when the IRS or a state deposits the refund

Bank Advance Product  Other Products Debit Card
EPS Refund Advance e-Collect, e-Bonus, direct deposit, and check FasterMoney
Republic Bank EASY Advance Refund Transfer, direct deposit, and check NetSpend
TPG Fast Cash Advance Refund Transfer, direct deposit, and check Green Dot
Refund Advantage Refund Advance Refund Transfer, direct deposit, and check FasterMoney
Refundo NOW Refund Transfer, direct deposit, and check NetSpend

Note  

  • Only one type of bank product can be used on a federal or state return. For example, neither federal nor state refund can be split between a bank product direct deposit and a bank product check.

  • A refund cannot be split between an IRS or state disbursement and a bank product. For example, neither federal nor state refund can be split between an IRS or DOR check and a bank product check.

  • When a federal bank product is on a return, either a state disbursement option or a bank product option can be used for a state refund.

  • State bank products are not available in states without a state income tax.

  • Generally, returns with bank products cannot be paper file unless the return is first rejected through the e-file database and cannot be corrected.

IRS and State Disbursement Options

Available IRS or state DOR disbursement options include:

  • Paper check mailed directly to the taxpayer’s mailing address

  • Direct deposit in the taxpayer’s checking or savings bank accounts

    • The IRS permits:

      • Direct deposit into up to three bank accounts

      • Use of all or part of a federal refund to purchase savings bonds for one or two beneficiaries (with Form 8888)

    • The following states restrict direct deposit refunds based on residency status:

      • Alabama (resident only)

      • District of Columbia (resident/part-year resident only)

    • Most states allow direct deposit into one account only . Only a few allow direct deposit into multiple accounts, including:

      • California

      • Maryland

      • Ohio

    • Hawaii does not allow direct deposit for first-time filers.

  • Pre-paid debit card for the following states:

    • Alabama

    • Connecticut

    • District of Columbia

    • Georgia

    • South Carolina

    • Virginia