I am being charged "an additional $40 processing fee". I just helped my daughter file her taxes on Turbo Tax and she was not charged this fee. Why am I?

The Extra $40 Refund Processing Service charge (45 in California) is if you want to have the Turbo Tax fees deducted from your federal refund.  You can pay the fees upfront with a credit card to avoid the extra charge.

 

How to review your fees

https://ttlc.intuit.com/community/charges-and-fees/help/how-do-i-review-my-fees-in-turbotax-online/00/26353

 

Remove Pay with Refund fee

https://ttlc.intuit.com/community/downgrading/help/how-do-i-remove-pay-with-my-refund-fees-in-turbotax-online-and-change-my-payment-method/00/25880

 

Maybe your daughter used the Free Edition?  

 

 

You are posting from a paid version of the software.  You can avoid that extra $40 fee if you pay before you file using a credit or debit card.  But if you choose to pay it from your federal refund, you pay an EXTRA $40 "refund processing fee" to have a third party bank receive your refund, take out what you owe to TurboTax for you, and send you the rest.

 

What is Refund Processing Service?

 

 

How can I see my TurboTax  fees?   

https://ttlc.intuit.com/questions/2565973-how-do-i-review-my-fees-in-turbotax-online 

 

 

 

If your refund is enough to cover your TurboTax fees PLUS the extra “refund processing” fee of $40 ($45 in CA) and your forms are ready then when you are in the FILE section you can choose to have your fees deducted from your federal refund by a third party bank, who will take out your fees and send you the rest of your refund after the IRS issues the refund. 

 

Please make note that if your refund takes too long to arrive (IRS delays, etc.) then you will also be agreeing that the TurboTax fees can be extracted from your bank account even before your refund is issued by the IRS.  This comes as an unpleasant shock to many people every year.  

 

 If you can possibly pay your fees upfront using a debit or credit card, it will save you that extra fee and even more importantly, the possible aggravation and delays that are often the result of poor handling/poor customer service by that third party bank.  We see way too many instances where refunds are delayed for months when users choose refund processing. There have been lots of complaints; there are a number of things that can go wrong when you use refund processing.  I suggest avoiding that situation if at all possible.  

 

And....you can never pay state tax due from a federal refund, so do not expect that.   The state tax due has to be paid directly to your state.