$40 Refund Processing fee?

Forum|Forum|3 months ago
February 21, 2026
3 replies
12 views

Why does TurboTax say $25 charge for filing state taxes but no charge for filing fed taxes. And then at the very end of the filing online process, they say, oh by the way you need to pay $40 more as a refund processing fee? TurboTax doesn't process the refund, the IRS does.

VolvoGirl

Level 15

The $40 is the Pay with Refund service charge to have the $25 state efile fee deducted from your federal refund. You can avoid it by paying upfront with a credit card or you can print and mail state for free. Start the File tab over and read the screens slowly. Watch what you click on, there is one screen that can trip you up if you go too fast.

stephenrkgAuthor

Level 4

Very helpful. Thanks. Why couldn't TurboTax make things as clear as you did?

MIBackpacker

Level 2

Intentionally very misleading. Now that I coughed up the extra $40 - makes me wonder if that used one of my "free" e-files too. I still have to do my kids and my moms and am going to be cranky if one of them ends up with an e-file fee due to terrible instructions.

baldietax

Level 12

"Pay With My Refund" sends your refund thru a 3rd party bank for processing which can cause delays and confusion, and costs $40 for that "service" - it's terrible. you should remove it and pay the fees directly to Turbotax up front if possible. See

https://ttlc.intuit.com/turbotax-support/en-us/help-article/intuit-account-billing/remove-pay-refund-fees-turbotax-online-change/L7UxC6ZZp_US_en_US

Graham3570

Level 2

Is there any way to "undo" this and just pay the state fee by credit card once you have e-filed the return? I accidentally had the same issue and would have just paid by credit card if I had followed this more closely. Caught the issue on two other family returns I filed.

VolvoGirl

Level 15

@Graham3570 Sorry no. If you already filed and it was accepted it is too late to change that.

@MIBackpacker Sorry no free state efile except New York is free. In the Desktop program you get one free state PROGRAM download to prepare unlimited state returns. Then each state return (including the first one) is $25 to efile. Or you can print and mail state for free.