$40 Refund Processing fee?

[stephenrkg]

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...

[stephenrkg]

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

[MIBackpacker]

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.

[Graham3570]

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]

@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.  

[CatinaT1]

Not after filing.

[xiongb1]

TurboTax is BS! EVEN if you pay your Federal with a credit card to avoid the $40 Federal refund, you're STILL going to lose the SAME amount to TurboTax FROM your credit card company, whether it's American Express, Discover, MasterCard, Visa, etc. They're STILL going to collect their $40 from you. It's just a slight of hand trick! To be frank, they SHOULDN'T be charging ANYTHING at all if they are honest - especially if they state that you can file your Fed taxes for FREE! SMH...

[DoninGA]

@xiongb1 It is called Payment Processor Fee when using a debit/credit card.  The fee goes to the payment processor not TurboTax.

Even paying by debit/credit card on the IRS website, there are Payment Processor Fees - https://www.irs.gov/payments/pay-your-taxes-by-debit-or-credit-card