If you choose to pay your TurboTax fees out of your Federal refund, the tax refund deposit you receive in your bank account (or card) should have the fees already subtracted, unless there is a problem that I describe in a paragraph below. You cannot pay fees out of any state refund.
When you choose to pay any TurboTax fees out of your Federal refund, you agree for a third-party company to set up a temporary bank account in your name to receive your funds. When the IRS releases your funds, the IRS sends the refund to the temporary account at the intermediary bank where the fees are subtracted. Then that intermediary bank sends the rest of your funds to your bank account (or card) in a second direct deposit. The company that handles that is called SBTPG (Santa Barbara Tax Products Group.)
If your refund is delayed at the IRS for an unusually long time, or if the IRS reduces your refund such that it is no longer enough to cover the fees, TurboTax would then send you emails asking for payment. If not paid, they ultimately notify you that they are about to debit your bank account, and then do so if not paid.
There is a $40 service fee if you choose that payment method ($45 for California filers where it is bundled with "Premium Services.") If you haven't already chosen that payment method and filed, you'll avoid that fee if you pay instead by credit/debit card or a prepaid debit card you can buy in a store.
It was just a general question. I've never done it before and was curious if they would deduct their money before it was credited to my bank account or if I had to pay them like on my own. It says it's taken from my federal refund, so I was curious if the amount going to my bank is the amount after they take out their fees, or if they take out their fees after it goes to my bank.
As I mentioned above, with the "pay out of refund" option TurboTax takes out your fees before it gets to you unless there's a problem. When it comes to your bank from the intermediary bank, the fees should already be taken out. When you receive your refund, do the math and see if the fees were taken out, including the $40 service fee and any sales tax. You refund amount prior to the fees is shown on your Federal Form 1040, Line 21a.