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The pay with federal tax refund option pays the TurboTax online account fees which were shown to you in the File section of the program on Step 1 when you were shown your Order Summary.
But there is an Extra $40 Refund Processing Service charge (45 in California) to have the fees deducted from your federal refund. So try to pay with a credit card to avoid the extra service charge.
How to review your fees
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