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I do not understand refund processing fee?

1 Reply
Level 15

I do not understand refund processing fee?

If you have any TurboTax product fees, and you pay them upfront with credit card or debit card, there is no further service fee.  You can also use a prepaid debit card you can buy in a store.

However, if you choose the option to pay your product fees out of your Federal refund (the refund processing service), there is a 34.99 service fee (39.99 for California filers, where it is bundled with Premium Services.)   That process uses an intermediary bank to first receive your refund from the IRS.  That bank subtracts the TurboTax fees, then sends the rest on to your bank account.

If you chose the refund processing option to pay out of your Federal refund, and now want to change your mind and pay upfront with credit card, debit card, or a prepaid debit card you can buy in a store, then you will avoid the 34.99 or 39.99 service fee.    Here's how to remove it, which varies according to your location:

Non-California filers:

California filers (where it is in the "Premium Services" bundle) :
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