$40 Refund Processing Fee

[GGBJr]

I am getting ready to e-file my grandson's Federal Tax return.  I was also going to e-file the MA state return.  As I got to the last Review step, I was told that there is a $40 Refund fee (there are both Federal and state refunds available), and how did I want to pay it.  I assumed that the charge was for the state e-file, since I have only used two of my five Federal e-files.  I backtracked and selected a mailing of the refund for the state return.  When I got to the end of the Review, I was told again that there is a $40 Refund fee.  Why is this?  Did TT not recognize the cancellation of the state e-file selection?   Also, I thought that the state e-file charge was only $25.

Thanks for any thoughts!

[xmasbaby0 · Accepted solution]

There is not a fee to e-file your tax return or to have direct deposit of your refund.

Did you choose to pay for using TurboTax by having the fee taken out of your federal refund?  That means you will pay an EXTRA FEE of $40 ($45 in CA) to have a third party bank receive your refund from the IRS, take out enough to pay TT, and then send you the rest of the refund.  ( The third party bank keeps the $40 or $45 fee for itself.)

You do not have to do that.   Pay upfront BEFORE you file --- pay using a credit or debit card.

REMOVE REFUND PROCESSING FEE

https://ttlc.intuit.com/turbotax-support/en-us/help-article/intuit-account-billing/remove-pay-refund...

[GGBJr]

Thanks for very speedy response!

There are two places/screens where one is asked if they wish to e-file a state return.  It turns out that I had only deleted one of those pages when I redid the process.  It is also noted in the software that a price increase for e-filing state taxes is going to occur in March, but no specific date is given.  I found no discussion of same when I Googled the subject.  I remember being asked in prior years how I wished to make a payment for a state e-file.  I don't recall seeing this option today until I reached the page asking how I wished to pay the $40 Refund charge.

Many thanks for your assistance!

[raymondblinn]

Why doesn't Turbo Tax tell you that you can avoid the $40 processing fee by paying with a credit card. Since all the money goes to a third party bank it is not costing them anything and saving their customers some money. 

[exgsdiva]

TT does NOT warn you there is a processing fee if you choose to pay your filing fee from your refund! But, if you do choose to pay filing fees from your refund, you will incur the "processing fee". To avoid this extra fee, choose to pay with a CREDIT CARD - you will avoid the additional Processing Fee. Would be helpful if TT stated this before you make a choice.

[GGBJr]

Thanks for the response.  The issue is actually quite simple.  Since we use both Windows and Mac-based computers to prepare our taxes, we need both Windows and Mac versions of the software.  For at least twenty years I have had to contact TT to have them download to my Intuit account both versions of the state software needed (in addition to the one free state allowed).  The second state software is purchased while one of us is online.  I have to call TT to download the other platform to my Intuit account.  This year the rep and her senior could not understand the issue, but downloaded the proper version, but attached to the Premier version of the basic software.  It din't work, so I had to purchase the state software again while in a tax program.

Evidently, I have to go online again - and wait for an hour - to convince someone that I have paid twice for one of my state softwares.