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

$40 Refund Processing Fee

GGBJr — Sun, 23 Mar 2025 21:43:24 GMT

I am getting ready to e-file my grandson's Federal Tax return. I was also going to e-file the MA state return. As I got to the last Review step, I was told that there is a $40 Refund fee (there are both Federal and state refunds available), and how did I want to pay it. I assumed that the charge was for the state e-file, since I have only used two of my five Federal e-files. I backtracked and selected a mailing of the refund for the state return. When I got to the end of the Review, I was told again that there is a $40 Refund fee. Why is this? Did TT not recognize the cancellation of the state e-file selection? Also, I thought that the state e-file charge was only $25.

Thanks for any thoughts!

Re: $40 Refund Processing Fee

xmasbaby0 — Sun, 23 Mar 2025 21:45:28 GMT

There is not a fee to e-file your tax return or to have direct deposit of your refund.

Did you choose to pay for using TurboTax by having the fee taken out of your federal refund? That means you will pay an EXTRA FEE of $40 ($45 in CA) to have a third party bank receive your refund from the IRS, take out enough to pay TT, and then send you the rest of the refund. ( The third party bank keeps the $40 or $45 fee for itself.)

You do not have to do that. Pay upfront BEFORE you file --- pay using a credit or debit card.

REMOVE REFUND PROCESSING FEE

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=m6r4xelq

$40 Refund Processing Fee

GGBJr — Mon, 24 Mar 2025 01:00:48 GMT

Thanks for very speedy response!

There are two places/screens where one is asked if they wish to e-file a state return. It turns out that I had only deleted one of those pages when I redid the process. It is also noted in the software that a price increase for e-filing state taxes is going to occur in March, but no specific date is given. I found no discussion of same when I Googled the subject. I remember being asked in prior years how I wished to make a payment for a state e-file. I don't recall seeing this option today until I reached the page asking how I wished to pay the $40 Refund charge.

Many thanks for your assistance!

Re: $40 Refund Processing Fee

raymondblinn — Fri, 13 Mar 2026 00:07:26 GMT

Why doesn't Turbo Tax tell you that you can avoid the $40 processing fee by paying with a credit card. Since all the money goes to a third party bank it is not costing them anything and saving their customers some money.