The State Assisted Refund is a non-loan product that facilitates the payment of tax preparation fees from the state tax refund. The state taxing authority deposits the taxpayer's state income tax refund into a temporary bank account where all associated fees are withheld from the refund and the remaining amount is paid to the taxpayer. Funding times vary from state to state.

How it works

Once a taxpayer agrees to pay for tax preparation with their refund, the return is filed to the state taxing authority with the temporary bank account information included on the state tax return.

When the state taxing authority issues the tax refund, funds are deposited into the taxpayer's temporary account, typically in as little as 21 days from the date the IRS acknowledged processing the federal tax return. Upon receipt of the refund from the state, all authorized fees (including the tax preparation fees) are deducted from the tax refund and disbursed to all parties.

The remaining balance is disbursed to the taxpayer via the disbursement method chosen by the taxpayer.

An Assisted Refund (AR) permits payment of tax preparation and other fees with your refund upon completion of services. It is not a loan. AR processed by Santa Barbara Tax Products Group, LLC using banking services of First Century Bank, N.A. AR processing fee and other fees may apply. Ask a Tax Pro for details and refund options with no additional cost. Most offices are independently owned and operated by Jackson Hewitt franchisees. All other offices are owned and operated by Jackson Hewitt Inc. or its affiliated entities.