$40 refund processing fee!!

3 replies
24 views

Why am I getting charged an additional 40 dollars for my federal return? Absolutely ridiculous. Taking my return elsewhere next year because this is VERY shady business.

xmasbaby0

Level 15

You do not have to pay with your refund. Click the box that says "Pay with Credit Card" and pay upfront using your debit or credit card to avoid the $40 refund processing fee.

Look at your own screenshot---do you see two blue boxes at the bottom of that screen? The one on the left says "pay with credit card." If you choose that one, you do not pay the $40.

**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.**

loganellis821Author

Level 2

Correct, after putting all your information to pay in, you still have to pay them an amount that's more than $0.. Shady business practice

xmasbaby0

Level 15

Sounds like you started in the Free Edition and entered something that caused an upgrade to a paid version.

TurboTax Online: Important Details about Filing Simple Form 1040 Returns

If you have a simple Form 1040 return only (no forms or schedules except as needed to claim the Earned Income Tax Credit, Child Tax Credit or student loan interest), you can file for free yourself with TurboTax Free Edition, or you can file with TurboTax Live Assisted Basic at the listed price. Roughly 37% of taxpayers are eligible.

Examples of situations included in a simple Form 1040 return (assuming no added tax complexity):

W-2 income
Interest, dividends or original issue discounts (1099-INT/1099-DIV/1099-OID) that don’t require filing a Schedule B
IRS standard deduction
Earned Income Tax Credit (EITC)
Child Tax Credit (CTC)
Student loan interest deduction
Taxable qualified retirement plan distributions

Examples of situations not included in a simple Form 1040 return:

Itemized deductions claimed on Schedule A, like charitable contributions, medical expenses, mortgage interest and state and local tax deductions
Unemployment income reported on a 1099-G
Business or 1099-NEC income (often reported by those who are self-employed, gig workers or freelancers)
Stock sales (including crypto investments)
Income from rental property or property sales
Credits, deductions and income reported on other forms or schedules
1095A for marketplace health insurance