Did you pick the option to have the fee deducted from your federal refund? This could be why your refund was lower than expected.

NOTE: The refund processing fee is not a fee to get your refund or E-file or to get direct deposit. It is an optional service which allows you to pay for your TurboTax fees thru your Federal Refund.

If you pay for your TurboTax fees by credit card then you would avoid the extra charge (refund processing service charge) of $34.99.