If you’re looking for a way tooffer more to your clients, refund transfers could be a valuable addition toyour tax preparation business. Here’s what they are, how they work, and howthey can benefit your business.

What are refund transfers?

If you received an income tax refund from us for tax year 2019, view and print New York State's Form 1099-G on our website; you may need to report this information on your 2020 federal income tax return. Get Form 1099-G for tax refunds. Unemployment insurance (UI) recipients: Visit Department of Labor for your unemployment Form 1099-G.

• Wisconsin Department of Revenue: Real Estate Transfer Fee. Assessors, Municipal Officials: 2020:: 2021 WPAM - Updated Personal Property Assessment Chapter Draft Available.
• Transfer taxes are fees charged on the exchange of home ownership. This tax is also referred to as a deed stamp tax, real estate conveyance tax or documentary stamp tax. Transfer taxes are imposed by state, county and sometimes city governments.

Also called bank products andrefund settlement solutions, refund transfers are one way your clients canchoose to receive their tax refunds. With refund transfers, your clients canuse your services at no upfront costs and then have your fee easily deductedfrom their refund.

How does the refund transfer process work?

1. Prepare return & confirm refund

After you’ve completed a client’s tax return and determined thatthey should receive a refund, they can elect to use the refund transferprocess.

You should make it clear that the refund transfer process iscompletely optional and involves some fees. For many taxpayers, the convenienceof refund transfers outweighs the additional cost.

Refund transfers and refund advances are integrated into TaxSlayer Pro, giving you the ability to offer your client several options to more quickly receive their refund.

2. IRS distributes refund to the bank

Instead of receiving their money directly from the IRS, your clients’ refunds will first be routed through a refund settlement bank. These banks are specially authorized to deduct necessary fees from federal and state tax refunds and then distribute them to the taxpayer.

3. Bank handles relevant fees

The bank will deduct your preparation fee from the refund anddistribute it to you, usually through direct deposit. Any other associated fees— such as service bureau fees, refund transfer fees, or transmitter fees — willalso be deducted with no hassle for your client.

4. Clients receive their money

After the bank has received payment from the IRS and processed your tax preparation fee, they’ll distribute the refund in your client’s preferred form. Depending on the bank, your client can receive their refund in the form of a check, direct deposit, or a prepaid card.

For your clients, the refundtransfer process is a simple and easy way to receive their refunds and pay fortheir tax preparation.

How can refund transfers benefit your clients?

Tax preparation with no upfront cost

Refund transfers are a great option for taxpayers who can’tafford or don’t want to pay your tax preparation fee upfront. The bank willhandle your fee, making the payment process as stress-free as possible for yourclients.

Choice of disbursement method

Different payment options mean you can cater to clients who have a bank account as well as to clients who do not have a traditional banking relationship.

Receive money sooner

Many refund settlement banks also offer refund advances. These advances are a kind of loan that allows clients to receive their money faster than they could with a traditional refund disbursement. In this case, the bank will send payment to your client before the IRS has processed and sent their refund. All of the banks that TaxSlayer Pro partners with offer refund advances, and some of these are interest-free.

How can refund transfers benefit your tax preparation business?

Nj Realty Transfer Tax Calculator

Offer more to your clients

Tax preparation is competitive, and the more options you canoffer your clients, the better. Offering refund transfers and refund advancescan give you an edge over other tax preparers. You can help clients get theirmoney faster and serve clients who can’t pay upfront.

Easier payments

Refund transfers streamline the payment process and prevent youfrom having to chase down late payments.

In a competitive market, differentiating yourself from your competitors is essential. Refund transfers can be an asset to your tax preparation business, helping you improve your cash flow and offer more to your clients.

Calculate Real Estate Transfer Tax Rates

Property transfer tax is an assessment charged by both the State of Michigan and the individual county. When you transfer real estate, they charge a fee as a percentage of the sales price. The seller is responsible for this fee unless it is otherwise agreed to be paid by the buyer. This fee is reported on a document called a 'Real Estate Transfer Valuation Affidavit'.

Enter the sales price of your property below

The tool will output the county tax, state tax and total tax due on sale.

Related: Michigan Title Insurance Calculator

Computing real estate transfer tax is done in increments of $500. The state charges $3.75 for each increment and the county charges $.55 (which an be up to $.75 as authorized by the county board of commissioners with a population more than 2,000,000 or more). These combined represents the total tax obligation. The Michigan legislation states:

Beginning on January 1, 1995, except as otherwise provided in this section, the tax imposed under sections 3 and 4 is levied at the rate of $3.75 for each $500.00 or fraction of $500.00 of the total value of the property being transferred. (Read more at STATE REAL ESTATE TRANSFER TAX ACT - MCL 207.525 Sec. 5 (Act 330 of 1993) - State)

The county tax is calculated in the same method but at a rate of 55 cents per $500. A rate up to 75 cents per $500 is allowed if the county's population is more than 2 million (Read more at REAL ESTATE TRANSFER TAX - MCL 207.504 Sec. 4 (Act 134 of 1966) - County).

New York State Transfer Tax Form

Tax Transfer Certificate

NOTE: This tool is intended to be used for illustrative purposes only. Estimates are not guaranteed and may be different based on your individual situation. Riverbank Finance LLC does not provide tax or legal advice. It is recommended that you consult with a tax attorney for advice on your situation.