You are not using the Free edition.

Your post indicates your are using the Deluxe edition - $40 

State tax return - an additional $40

Selecting to pay the TurboTax account fees using the optional pay with refund - Service Charge $39.99

If you have not paid for the online edition you are using, have not filed your tax return or registered the Free edition, then you can clear your return and start over with a lower priced edition. Click on Tax Tools on the left side of the program screen while working on the 2019 online tax return. Click on Clear & Start Over.

this is ridiculous.   i was told after starting my taxes that my return required the deluxe edition for $40.  then it's the extra $40 to file state?  to top it all off, it's  $40 more to have my fees paid from my return??? not 'free,free,free, free' by any means .

 also, it's calling me a new user now but I've been filling with turbo tax for years and have never had to pay this ridiculous exorbitant amount.

That's common to end up with multiple accounts. First LOG OUT of whatever TurboTax account you're logged into right now. Then use this TurboTax account recovery website to get a list of user ID's for an email address. Run the tool against any email addresses you may have used
https://myturbotax.intuit.com/account-recovery/

If you used the Desktop CD/Download program then the only copy is on your computer and not saved or stored online.

In the regular Turbo Tax Free Edition, information that you can enter is limited now.  Why do I have to upgrade from the Free Edition?
https://ttlc.intuit.com/community/upgrading/help/why-do-i-have-to-upgrade-from-free-edition/00/26379

To go back to the Free Edition you can try to clear and start over https://ttlc.intuit.com/community/using-turbotax/help/how-do-i-clear-and-start-over-in-turbotax-onli...

OR There is also The Turbo Tax Free File program which is free for federal and state.  And has more forms than the Federal Free Edition, like Schedules A, B, C , D, E, F, EIC, H, K-1, SE,  etc.

To qualify for the Free File website  you just need to meet one of these 3 things
AGI $36,000 or less
Active duty military with AGI of $69,000 or less
OR qualify for EIC (earned income credit.)

In order to use the Free File program, you have to start it at a special website. Click on the Orange button I Qualify, Let's get Started
https://freefile.intuit.com/

So, when I want to use my federal refund to pay for your services, what does the "processing" that is supposedly worth $40 entail? A couple of mouse clicks?? Trying to figure out why there is a $40 difference is between paying with my card and paying from the refund

Would you say that advertising your services as free is disingenuous?

What is the Pay with Refund Processing Service

https://ttlc.intuit.com/community/choosing-a-product/help/what-is-refund-processing-service/00/25889

The Refund Processing Service charge is not to get Direct Deposit.  It is so they can take the fees out of your refund.  To do that your refund has to first go through the Turbo Tax bank to take the fees out.  Then they send the rest to you.

Hm, thanks for not answering my question. What does the $40 fee specifically cover? What "processing" costs $40? Why am I paying nearly $50 extra to simply use a different method of paying? Savvy?? It's ridiculous, deceitful and it's a total bait and switch

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@maxo24 wrote:

Hm, thanks for not answering my question. What does the $40 fee specifically cover? What "processing" costs $40? Why am I paying nearly $50 extra to simply use a different method of paying? Savvy?? It's ridiculous, deceitful and it's a total bait and switch

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If you requested to have the TurboTax account fees deducted from your federal tax refund, the IRS will send the refund to a third party processor to have the fees and the $40 service charge deducted. The third party processor will deduct the TurboTax fees plus their $40 service charge and then attempt to direct deposit the remaining refund balance into the account that you entered on your tax return.

TurboTax does not receive any kind of tax refund, federal or state.

why am i being charged because I choose to take the money out my refund. Ridiculous. Def a scam never using them again 

This and all the services are exactly 40. So where you see the charge again you're being led to believe that it was the last 40 mentioned. I don't own a home, have kids, investments, donations, or moved states. I somehow don't qualify for the free service? Just go to a tax guy and you will spend less.

Where do I report this cost?

If we detect that your tax situation requires expanded coverage, we'll prompt you to upgrade to a version that supports the forms you need so we can maximize your tax deductions and ensure you file an accurate return.  For more details on this, please see the Help Article here.

@ragazza-canto

I selected the free service and it changed me to the pick a product, twice, it would not let me take the free service, something is up!!