topic Re: $40 Refund Processing Fee in Get your taxes done using TurboTax

$40 Refund Processing Fee

JARys — Wed, 11 Feb 2026 04:02:00 GMT

I purchased the Deluxe version Turbo Tax including the state from Costco. I owe federal taxes, and I have to pay extra to file the state tax return. On top of that, Turbo Tax wants to charge me $40 for a "Refund Processing Fee" even though I will not receive a federal tax refund. Money.com says that this is basically a scam, and that there's a way to opt out, but there is no box to "uncheck." The article says that Turbo Tax is charging you a fee to pay your fees. My purchase of this software more than doubles with all the extra fees that have been added on. What a scam. I have used Turbo Tax for years, but I will never buy this software ever again.

Re: $40 Refund Processing Fee

DoninGA — Fri, 09 Feb 2024 00:43:19 GMT

You cannot use the optional pay with refund if you have taxes owed. If you had continued further that would have been a TurboTax message.

See this TurboTax support FAQ for how to remove the pay with refund option - https://ttlc.intuit.com/turbotax-support/en-us/help-article/intuit-account-billing/remove-pay-refund-fees-turbotax-online-change/L7UxC6ZZp_US_en_US?uid=lsdxbp4b

Re: $40 Refund Processing Fee

mark8722 — Fri, 09 Feb 2024 02:44:34 GMT

The way I understand it, the $40 fee is only if you want the payment to come out of your refund check. You don't have to pay this fee if you use a credit card.

Re: $40 Refund Processing Fee

VolvoGirl — Fri, 09 Feb 2024 02:54:27 GMT

Don't know why you are seeing the Extra $40 Refund Processing Service charge (45 in California) if you have a federal tax due. You can only use that if you get a refund. Go back through the File tab slowly and read all the screens. There is one that can trip you up. Pick to pay the state efile fee with a credit card. And if you bought it from Costco it should automatically apply a $10 credit towards the $20 state efile fee.

I have a screen shot but it won't let me post it right now.

Re: $40 Refund Processing Fee

fjb2 — Sat, 10 Feb 2024 13:00:37 GMT

I got suckered into paying the fee this year for some reason it got past me i will not ever use turbotax again what a scam it is hidden in a very subtle way yes it was due to my error but it should not be there

Re: $40 Refund Processing Fee

emory_40026 — Wed, 28 Feb 2024 17:04:35 GMT

Processing fee to use your federal return is a SCAM. Turbotax is greedy as hell, free IRS version soon hopefully. Just hit Back a couple times and pay with credit card.