Adding a Refund Transfer (RT) to a state return allows the preparation fees to be deducted from the taxpayer's refund. Follow the steps below to apply the RT for both Federal and State returns.
Step 1: Select Refund Transfer in Review Section
From the left-hand side menu, go to Review/Print.
Select Review.
In the Refund Payment Type dropdown menu, choose Refund Transfer.
Click the Update button to access the Bank Application Screen.
Scroll down to the checkboxes section and check the third box:
"Do you anticipate preparing more than one RT for this taxpayer?"
Checking this option allows the RT to apply to both the Federal and State returns.
Step 2: Apply for RT in the State Return
Select the required State return.
Access the Electronic Filing Declaration Form.
Go to Part II - Refund and Payment Information.
Choose Refund Transfer from the Refund Type Indicator dropdown menu.
After completing these steps, the bank product will be successfully added to the state return.