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Level 2

Why are you charging $39.99 refund processing fee?

 Considering  that Turbo Tax software and electronic filing service is what customers pay for,  why are customers being charged an additional $39.99 "Refund Processing Fee" when the IRS and state tax agencies actually electronically deposit the refunds directly to the customer's account?  Why pay an additional "$40.00" for a service that's part of the normal processing by IRS and my state tax authority? Appears this is just a scheme to get additional payment from your customers.  Please provide a detailed explanation.  Thank you

2 Replies
Level 20

Why are you charging $39.99 refund processing fee?

If you choose the totally optional Refund Processing Service to have your TurboTax account fees paid from the federal tax refund instead of paying the TurboTax account fees upfront with a credit card, then there is a service charge for this option of $39.99.

After the tax return has been e-filed and received by the IRS, the IRS will Process, Approve and then Send the federal tax refund to the third party processor where they will deduct the TurboTax account fees and their $39.99 service charge.  The remainder of the federal tax refund is then sent to the bank you indicated for direct deposit.

Level 20

Why are you charging $39.99 refund processing fee?

Pay with refund.PNG


Although it is not crystal clear ... the screen does mention the extra fee to use that option ... if you have not filed yet you can return to step 1 of the FILE tab to remove the fee by choosing the other option.