$40 refund processing fee

jdamore01 · ‎January 24, 2026

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

DoninGA

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.

xmasbaby0

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

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.