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Level 2
January 24, 2026
Question

$40 refund processing fee

  • January 24, 2026
  • 5 replies
  • 16 views

Why should I be charged any fee for the first return? I get 1 free state and 5 free federal returns... how can I bypass this fee

5 replies

DoninGA
Level 15
Level 15
January 24, 2026

Go back through the File section and remove the option to have your TurboTax fees deducted from your federal tax refund.  Apparently you chose this option and need it removed.  There is a $40 service charge for the option.

Level 15
January 24, 2026

Do not choose to pay the $25 state e-file fee by using refund processing.   When you use desktop download software you get the software to prepare the state return, but there is an extra fee of $25 to e-file the state.

 

And then......if you choose to pay the $25 by having it deducted from your federal refund, you pay an extra $40 refund processing fee to a third party bank.   Do not do it.   Either pay the $25 upfront with a credit or debit card, or avoid the state e-file fee altogether by printing and mailing the state return.

 

What is Refund Processing Service?

 

**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.**
VolvoGirl
Level 15
January 24, 2026

The $40 is the Refund Processing Service charge if you want to have any Turbo Tax fees deducted from your federal refund.   The free state you got is only a free state PROGRAM download.  Then each state return including the first one is $25 to efile or you can print and mail state for free.

 

Go back through the File tab SLOWLY and read the screens.  People get going too fast and clicking on the right corner box to continue.  But you have to click on the left box to pay with a credit card to avoid the fee.

 

 

VolvoGirl
Level 15
January 24, 2026

Here’s a screenshot from last year.  Do you remember seeing this screen?   

 

Level 2
March 6, 2026

I sent a email about refund for the charge 

to do my taxes. Kevin was giving me a discount 

that didn’t go through. 

I was charged -$146.62 and that was too much to be charged even my purse doing my taxes. Kevin was trying to give me a discount, but it wouldn’t go through so I would actually like a refund on the amount. Thank you for your help

Evelyn [PII removed]

DoninGA
Level 15
Level 15
March 6, 2026

@Emacaro No one on this forum can assist you with a billing issue.  You must contact TurboTax support.

 

You will have to contact TurboTax support for assistance with this problem. Use the key words Billing Issue


See this TurboTax support FAQ for contacting support - https://ttlc.intuit.com/turbotax-support/en-us/help-article/account-management/turbotax-phone-number/L0Od33nMQ_US_en_US?uid=lfgviwbm