Did you qualify? This is the list of requirements to qualify for the Refund Processing.
Requirements
You'll need to e-file your federal return; it's not available if you paper-file the federal.
The Refund Processing option only appears if you have a federal tax refund, and you can only deduct your fees from your federal (not state) refund.
You'll need to direct-deposit your refund into a single account, and the name on the bank account needs to match the name on the tax return.
Refund Processing can only be used once to pay your fees.
Fees (if any) are charged once when the IRS processes your return. If your return is rejected, you might have to enter your bank account info again, but we won't charge you a second time.
I have a high enough federal return to pay my fees, but the system won't let me. How do I fix this?
Please see this Help Article for reasons why you may be unable to pay your TurboTax fees with your refund.
If none of the situations in the Help Article apply to you, please let us know what TurboTax product you are using so we can further assist you.
Did you ever get it figured out? I’m having that issue now
I just saw a post saying it wasn't working and has been reported to the moderator.
@Kiyak0839 wrote:
So I’m not doing anything wrong? It’s a system error?
No, you are not doing anything wrong. The option to pay with a refund is not being presented when using the TurboTax online editions. It has been reported and we are waiting on a response from the TurboTax Moderators on whether this is a bug or the option has been removed intentionally.
We will not know one way or the other since the Moderators are only available during the weekdays.
So you’ve reported it to the moderator? Where did you see this post?
@Kiyak0839 wrote:
So you’ve reported it to the moderator? Where did you see this post?
This is the post - https://ttlc.intuit.com/community/retirement/discussion/no-option-for-payment-to-be-taken-from-my-taxes-i-asked-the-bot-to-no-avail-what-should-i-do/01/2760974#M181118
Or—-Use this IRS site for other ways to file for free. There are 8 free software versions available from the IRS Free File site
https://apps.irs.gov/app/freeFile/
I’m not comfortable with that. Is there explanation as to why TurboTax removed the pay with refund option?
This just started over the weekend so it may be a program issue which may be corrected when the tech crew gets back to work today ... they are on the west coast and it could take a day or 2 to correct if it is just a technical issue.
If it turns out to be a temporary glitch and the "pay out of Federal refund" option returns, be aware that payment method has an additional 39.99 service fee (44.99 for California filers). You avoid that extra service fee if you pay upfront by one of the methods below:
There is no service fee if you pay the TurboTax product fees by credit card or debit card. If you don't have or don't want to use a credit/debit card, you can also pay by a prepaid debit card you can buy in a store. A prepaid card purchased in a store may have a service fee of a few dollars from the underlying bank to register and activate. Any card must have the Visa, MasterCard, Discover, or American Express logo. A US billing address is required when using a card.
If the "pay out of Federal refund" option returns, you must also be sure you meet all the qualifications. Here are some circumstances that do not allow that option:
FAQ: Why can't I deduct my TurboTax fees from my refund?
The refund processing option has been discontinued for the rest of 2022 for unknown reasons.
So your options are :
1) If your AGI is $73K or less you can start again using one of the totally free programs at the IRS FREE FILE site here :
https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free
2) stay with TT and pay the fees upfront with your credit/debit card. If you don't have one maybe a family member or friend will help you out. Or for $5 you can buy a pre paid debit card at almost any major store, put just enough on the card needed to pay the TT fees and register the card online using a US based address. Then you can use the debit card to get the refunds direct deposited to ... check with the debit card bank for the correct routing & bank account numbers for your debit card account ... it will NOT be the number on the card.
3) find another way to file ... the IRS has fill in the blank forms that you can mail in (check with your state for their forms). https://www.irs.gov/forms-instructions
Wow, I actually prefer TurboTax bc it makes it more easy and puts things in simple terms. So how did you get the information that is was terminated for the rest of the year? But will allow you to file if you pay up front? That’s weird!
@Kiyak0839 well, I was the one who called Product Support personally and they told me they made a decision to suspend the product feature for the rest of this year. It will be available again in January,
Frankly, it is a VERY EXPENSIVE product and personally i am glad it is temporary not being offered. Think about it....you are spending $40 for the convenience of having your fees netted out of your refund. if your refund is $1,000 you are paying 4% to wait just 3-4 weeks for that refund. That is about a 50% annualized interest rate!!!!!
if your TT fees are $100 and you put that on a credit card, that would only cost $2.00 in interest over the same month! (assumes the interest rate on your credit card is 24% annualized)
The convenience fee of $40 is simply 'highway robbery', and SBTPG makes HUGE profits by charging $40.
I qualify for all these requirements and it still won’t let me pay with my refund. My refund this year is $90 and it’s $49 for filing. I don’t understand.
If your federal refund is only $90 and your TurboTax fees are $49, then you cannot use pay with refund. There is an extra refund processing fee of $40 ($45 in CA) to use refund processing. You will need to pay your TurboTax fees upfront using a credit or debit card.
How can I see my TurboTax fees?
If your TurboTax fees are higher than expected, you can reduce them by removing add-ons (BEFORE you e-file) :
Or—-Use this IRS site for other ways to file for free. There are 8 free software versions available from the IRS Free File site
https://apps.irs.gov/app/freeFile/
i have a return that is more than enough to cover all fees adn it will not allow me to pay with my refund
In order to pay your TurboTax fees with your refund (what is know as a Refund Transfer), you will need to have a sufficient enough Federal refund to qualify. The bank fee for Refund Transfer is around $40, so your Federal refund will need to be more than your TurboTax fees plus the Refund Transfer amount. The state refund amount cannot be used to pay your TurboTax fees - only the Federal refund.
In addition:
If all of these requirements are not met, you will not be able to qualify for a Refund Transfer.
Yes. All requirements are met. Have done nothing different from the past 3 years filing. And still not allowing me to pay with refund.
{Edited 01/27/2026|3:15 PST}