When you choose "refund processing" TurboTax gets its fees when the IRS releases your refund. Your refund goes to the third party bank. The bank takes out your fees and then that bank sends the rest of the refund to you.
How can I see my TurboTax fees?
https://ttlc.intuit.com/questions/2565973-how-do-i-review-my-fees-in-turbotax-online
What is Refund Processing Service?
Santa Barbara Tax Products Group, LLC (SBTPG) is the bank that handles the Refund Processing Service when you choose to have your TurboTax fees deducted from your refund. This option also has an additional charge from the bank that processes the transaction.
You can contact them SBTPG, toll-free, at 1-877-908-7228 or go to their secure website www.sbtpg.com
https://ttlc.intuit.com/questions/2580357-who-provides-the-refund-processing-service
I'm still a little confused. Why would I have owed TuboxTax anything? We had already purchased the program through Costco.
When you prepared your tax return, did you use the CD/download that you purchased from Costco? Or did you use online software by mistake, thereby incurring the fees for online?
We see people get confused and they keep logging in to online software which will require them to pay at the end. You need to use the desktop software. One way to tell if you are using the right software---your tool bar. Online software has the toolbar in a black vertical column on the left side of the screen. Desktop software has the tools up on the top of your TT screen.
You cannot use the CD/download license code to pay for using online. The license code is only for the CD/download.
Or.....when you used the CD/download, did you e-file the state? If so, there was a $25 state e-file fee, and then if you chose to have that fee deducted from your federal refund, you agreed to pay an extra "refund processing fee" to the third party bank---which cost you another $39.99 (or $44.99 in CA).
It must have been the state fee cause I was charged $25. I've never had to pay to file for my state return either. My husband didn't get charged (we file separately).
Thanks for your help!
Next time you use the CD/download---be aware that there is always a fee to e-file a state return with desktop software. Always Early in the tax season it is $20 to e-file state and it increases to $25 on March 1. But you can avoid it if you print and mail the state return instead.