Federal Refund

GDixon061235 — Sun, 15 Feb 2026 23:05:22 GMT

Why is there Processing Fee for processing a federal refund? The refund is made by the IRS; this fee seems like a ripoff.

Re: Federal Refund

xmasbaby0 — Sun, 15 Feb 2026 23:28:22 GMT

Avoid the $40 fee by paying your TurboTax fees with a credit or debit card before you file your tax return. If you choose to pay your fees by having them deducted from your federal refund, you involve a third party bank and that bank gets the $40. When you choose "refund processing" your federal refund goes to that bank first, then the bank takes out enough to pay TurboTax and keeps another $40 for itself. Some users make that choice because they are short of funds to just pay upfront before they file. You are NOT required to use refund processing.

topic Federal Refund in Get your taxes done using TurboTax

Federal Refund

Re: Federal Refund