If you choose to have your TurboTax fees deducted from your Federal refund, then there is a charge for that service, which charged by the bank that handles the transaction. You can pay by direct debit, or credit card to avoid the fee.
Why am I being charged a refund processing fee on TurboTax?
If you choose the totally optional Refund Processing Service to have your TurboTax account fees paid from the federal tax refund instead of paying the TurboTax account fees upfront with a credit card, then there is a service charge for this option of $39.99.
How do I remove Pay With My Refund fees in TurboTax Online and change my payment method?
If you select Pay with Refund to pay your Turbotax Fees, there’s a $39 processing fee charged by the third-party bank that handles the transaction.
Once your e-filed return is in pending or accepted status, it's too late to remove Pay With My Refund. However, if your return is rejected, you have another opportunity to remove Pay with My Refund.
If your e-file return is not pending or accepted, here's how to change your payment method and remove refund processing fees before you e-file.
Instructions for TurboTax Online
- Sign in to your account and open or continue your return
- Select File in the left menu and proceed to the Just...more step screen.
- On this screen, select Revisit next to You've chosen to deduct your TurboTax fees from your federal refund
- Select View Payment Options on the next screen and select Pay now on the screen after that
- Complete payment by entering your credit or debit card information
- Continue to the Just...more step screen to make sure the Pay With My Refund has been removed. Step 1 should now show that you paid with your credit or debit card
Instructions for mobile app
- Sign in and open your return, if you aren't already signed in
- Select the menu icon in the top left corner
- Select File
- Select You've chosen to deduct your TurboTax fees from your federal refund
- Scroll down and select View payment options
- Choose a payment option other than paying with your federal refund
