$40 Refund Processing fee?

stephenrkg · ‎February 20, 2026

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

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.

baldietax

"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...