HOW TO UPDATE DIRECT DEPOSIT W/out paying additional fee?

[EDMHARLEY22]

so I’m at the end of my return and going over my direct deposit info and it needs to be updated due to some fraudulent banking activity with my previous accounts that I obviously had to close and reopen new ones however, it’s telling me to click the third option below that says, “Choose other options” which then takes me to a screen telling me I need to pay a $40 processing fee on top of the regular TurboTax fee… and still does not make it clear on if you can pay for the service out of your refund, as well as even e-file via direct deposit. Additionally there’s absolutely no information on what the $40 processing fee is for. Does anyone know anything about this? 

[mesquitebean]

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@ EDMHARLEY22 wrote:

so I’m at the end of my return and going over my direct deposit info and it needs to be updated due to some fraudulent banking activity with my previous accounts that I obviously had to close and reopen new ones however, it’s telling me to click the third option below that says, “Choose other options” which then takes me to a screen telling me I need to pay a $40 processing fee on top of the regular TurboTax fee… and still does not make it clear on if you can pay for the service out of your refund, as well as even e-file via direct deposit. Additionally there’s absolutely no information on what the $40 processing fee is for. Does anyone know anything about this?

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That is not correct.  The additional $40 fee has nothing to do with direct deposit.  You likely selected to pay your product fees out of your Federal refund, which has a $40 processing fee ($45 California).   That can be removed.  Here's more info:

Did you choose to pay your TurboTax fees out of your Federal refund?  If so, it's that payment method that is generating the $40 fee ($45 for California filers.)    To avoid that extra $40 fee you have to decline the "pay out of refund" offer and choose to pay upfront with credit/debit card instead.  So if you don't want that payment option, go back and pay by credit/debit card.

There is no extra fee to use direct deposit or to change the direct deposit info.

The deposit info can be updated using the steps below.   According to the FAQ below, it can be changed when on the  Get your refund up to 5 days early screen you choose "See All Options" and then choose Direct Deposit.

FAQ:  How do I change my transferred direct deposit information?

https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-refund/change-transferred-direct-dep...

[EDMHARLEY22]

Hello,

thank you for your answer and help. I’m a MA. resident. And yes, I usually have the fee taken out of my refund, so I did have that Option checked. my biggest concern is that if I do pay in advance, it still says down at the bottom, where 

“deposit my refund” is, all the way below other refund options, highlighted in blue, they help select a new method after payment, and that not all options are available to all customers…. so that is not very clear. Basically I just want to make sure that I will still be able to e-file.

[mesquitebean]

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@ EDMHARLEY22 wrote:

Hello,

thank you for your answer and help. I’m a MA. resident. And yes, I usually have the fee taken out of my refund, so I did have that Option checked. my biggest concern is that if I do pay in advance, it still says down at the bottom, where 

“deposit my refund” is, all the way below other refund options, highlighted in blue, they help select a new method after payment, and that not all options are available to all customers…. so that is not very clear. Basically I just want to make sure that I will still be able to e-file.  

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Paying at the time of filing using a credit/debit card does not affect your ability to efile.   The majority of filers pay the TurboTax fees with a card at the time of filing and continue forward to efile, and thus avoid the $40 fee discussed above.

I don't have the ability to see the specific screen you are looking at in Online TurboTax, but after paying with credit/debit card, it will ask you something like "how do you wish to receive your refund?"   If you choose direct deposit (you may have to first choose "see all options" (in Step 2), and if it populates with old invalid deposit info, you should be able to change it.  Then it should move ahead to subsequent screens where you finish the efile process.   Whatever you do, DO NOT efile with the wrong deposit information.   Make sure it is correct before efiling.   The final efiling screen is a few screens after that payment and refund deposit section.  It will have a big orange button that says "Transmit My Returns Now."   You can back up any time before that if you have to.