Get your taxes done using TurboTax

That $40 fee is a refund processing fee that is charged if you choose to have the state e-filing fee deducted from your federal refund---a third party bank handles that.    Don't do it.  Pay the state e-file fee upfront using a debit or credit card and avoid the extra $40 fee, or better yet, instead of e-filing the state, print it and mail it for free.   You can avoid the state e-file fee with the CD/download if you mail the state instead of e-filing it.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**