I finally got clarification. The $40 refund processing fee was only if you wanted to deduct the state e-file charges from your federal tax refund then they would charge another $40 to process that transaction. So if you say you’ll pay the state e-file charges with a credit card, then there’s no $40 processing fee. It wasn’t clear to me and wasn’t explained that way in Turbo Tax. But once you say you’ll pay the state e-file charges with a credit card, the system will let you proceed.
