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Pay-by-Refund incentive qualifications

SOLVEDby IntuitLacerte Tax2Updated March 11, 2022

What incentives are available and am I eligible to receive one?

If you offer Pay-by-Refund to your clients in tax year 2020, you may be eligible to receive incentives. This chart will help you determine which incentives are available for you:

Incentive CriteriaIncentive Payment
All ProSeries, Lacerte and ProConnect Tax customers eligible for credit incentives not specified by tax year indicated below.$10 on all federal funded Pay-by-Refund transactions filed through the 1040 tax filing deadline of the then-current tax year, beyond the number of Pay-by-Refund transactions funded in the prior tax year.
Tax year 14, tax year 15, tax year 16, tax year 17, and tax year 18 new customers eligible for free ProSeries software offers$10 on all federal funded Pay-by-Refund transactions filed over 50 (for ProSeries 1040 Complete or ProSeries Power Tax Library) filed through the 1040 tax filing deadline of the then-current tax year.
Tax year 14, tax year 15, tax year 16, tax year 17, and tax year 18 new customers eligible for ProSeries Pay-by-Refund software offers$10 on all federal funded Pay-by-Refund transactions filed through the 1040 tax filing deadline of the then-current tax year.
Tax year 19 and tax year 20 new to the franchise professional tax customers eligible for ProSeries, Lacerte or ProConnect Tax offers$20 for each federal funded Pay-by-Refund transaction filed through the 1040 tax filing deadline of the then-current tax year. Offer valid for three consecutive tax seasons from initial tax season.
Tax year 19 and tax year 20 new to the franchise professional tax customers may be eligible for free or discounted ProSeries software offers based on qualifying volume from prior year returns.$20 for each federal funded Pay-by-Refund transaction filed over 50 returns (for ProSeries 1040 Complete or ProSeries Power Tax Library) when filed through the 1040 tax filing deadline of the then-current tax year. Offer valid for three consecutive tax seasons from initial tax season

When will incentives be paid?

  • Incentive payouts will be  paid out by the end of June, so the funds should be available in your bank account the last week of June or the first week of July. Intuit has made the decision to extend the qualification period through 7/16/2021. A second round of incentives will be paid out for funded returns during this extended period and will be posted to your bank account in August.

What are the cut-off dates for meeting the conditions of the incentive payout?

  • May 30, 2021 for tax year 2020.

How does Intuit receive my information for the 1099?

  • If you enrolled to offer Pay-by-Refund to clients in tax year 2020, IRS regulations require Intuit to prepare 1099 reporting on the basis that you may become eligible to receive incentive payments from offering these services. This required information is entered during your enrollment with the providing banks.

How will I receive my incentive payment?

  • The payout is directly deposited into the bank account that was used during tax season to collect your tax preperation fees.

What will the description look like on my bank statement?

  • The transaction should be labeled with the participating bank name, such as TPG or Refund Advantage. It won't show as Intuit, ProSeries, lacerte or ProConnect Tax. You'll also receive a statement via mail towards the end of June 2021 for the first incentive payout. If you qualify for a second incentive payout, a personalized email detailing the amount and funded units will be sent in the beginning of August.

Why is the incentive less than what I anticipated?

  • Intuit pays incentive on returns funded through 5/30/2021 for the first round of payouts, and through 7/16/2021 for the second round of payouts.  If they were funded after that date they don't qualify.  Also, if your product was free or if there was a contract associated with your order, there may have been terms specifying that a certain amount of returns needed to be funded before the incentive would qualify on returns thereafter.  Also, for those that participated last year, incentive is paid for those returns that are over the amount of funded returns in the prior year. 
  • TY20 funded returns - TY19 funded returns = # of funded returns in which you'll receive incentive payout

If you have further questions, please contact us at the appropriate telephone number below.

For more information on how to contact Lacerte, as well as our operating hours, see here.

For more information on how to contact ProSeries, as well as our operating hours, see here.

The $59.90 Pay-by-Refund fee is made up of a $39.95 Bank Fee and a $19.95 Technology fee

1. Pay-by-Refund or refund transfer program (“Program”) participation available to eligible ProSeries, Lacerte and ProConnect Tax customers for a limited time only. Program participants (will be designated to an incentive category as determined by Intuit and), depending on the software used, may earn a credit or other incentive for every qualified federal funded Pay-by-Refund transaction as outlined in the table below (excluding Quick Collect transaction) that is filed from January 1st through the 1040 tax filing deadline of the then-current Tax Year through either of the following banks: Santa Barbara Tax Products Group or Refund Advantage through the 1040 tax filing deadline of 2021 (each a “Participating Bank”). To be eligible participants must adopt industry refund transfer best practice principles by charging customary and reasonable processing fees, and federal returns must be transmitted to the IRS using a single account and EFIN. Federal returns that are rejected by the IRS, or deemed fraudulent, or a result of identity theft are not eligible for credit under the Program.  For Tax Year 2020 if  software and a user are eligible for credits, aggregate credits payment will be delivered from Participating Banks by May 31st of the year you are currently enrolled. A $59.90 one-time bank set up fee applies to each federal Pay-by-Refund transaction. Additional fees apply to state Pay-by-Refund filings. Offer may be terminated or modified at Intuit’s discretion and Program and software terms and conditions, including available features, credits, pricing, and support are subject to change without notice. You must meet certain minimum funded Pay-by-Refund transaction thresholds in order to be eligible to qualify for free or discounted software.

New customers may be eligible to receive free ProSeries software by meeting the following eligibility requirements per licensed copy of ProSeries software using single EFIN:

  • Must show initial proof of minimum of 50 federal funded refund transfers transactions from the prior Tax Year.
  • Must complete a minimum of 50 federal funded Pay-by-Refund transactions through Participating Banks by the 1040 tax filing deadline each Tax Year covered under the Term of the agreement.
  • Must file the first federal Pay-by-Refund transaction within the 1st week of e-File each year of the Term.
  • Free software will be upgrade equivalent of the original software version purchased via the initial order Quote.
  • Filings are based on an individual site office. Multi-site offices won’t be aggregated towards the minimum thresholds described above.

New customers may be eligible for ProSeries Pay-by-Refund software offers by meeting the following requirements:

  • Must show initial proof of minimum of 20 federal funded Pay-by-Refund transactions in the prior Tax Year.
  • Must complete minimum of 20 federal funded Pay-by-Refund transactions through Participating Banks by the 1040 tax filing deadline each Tax Year covered under the Term of the agreement.
  • Filings are based on an individual site office. Multi-site offices won’t be aggregated towards the minimum thresholds described above.

To be eligible to receive any incentive compensation under this Program, the IRS requires Intuit to prepare a 1099.  You will need to provide Intuit certain information, including:  a) Tax Identification Number or Social Security Number, and b). Firm name, primary contact, address, phone number, and email address.   Failure to provide any of this information may result in your incentive payment being withheld, delayed or canceled.

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