Federal Refund

[GDixon061235]

Why is there Processing Fee for processing a federal refund? The refund is made by the IRS; this fee seems like a ripoff.

[xmasbaby0]

Avoid the $40 fee by paying your TurboTax fees with a credit or debit card before you file your tax return.   If you choose to pay your fees by having them deducted from your federal refund, you involve a third party bank and that bank gets the $40.    When you choose "refund processing" your federal refund goes to that bank first, then the bank takes out enough to pay TurboTax and keeps another $40 for itself.   Some users make that choice because they are short of funds to just pay upfront before they file.  You are NOT required to use refund processing.