Why is there a $40 processing fee to file federal taxes?

[elainem921]

I have never paid a processing fee before, what changed?

[SusanY1]

The $40 processing fee is to pay the TurboTax fees from your refund.  You can avoid this charge by paying instead with a debit or credit card.  

[VolvoGirl]

That is optional.  The Extra $40 Refund Processing Service charge (45 in California) is if you want to have the fees deducted from your federal refund.  You can avoid it by paying upfront with a credit card.  

How to review your fees

https://ttlc.intuit.com/community/charges-and-fees/help/how-do-i-review-my-fees-in-turbotax-online/0...

Remove Pay with Refund fee

https://ttlc.intuit.com/community/downgrading/help/how-do-i-remove-pay-with-my-refund-fees-in-turbot...

[dfmorales5]

This fee never existed before why now?  Is this something new with Turbo Tax?  Who is the fee for?

[DoninGA]

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@dfmorales5 wrote:

This fee never existed before why now?  Is this something new with Turbo Tax?  Who is the fee for?

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The refund processing fee of $40 has been used for years in TurboTax.  It is only when you select to have the TurboTax account fees paid from the federal tax refund.  if you had selected to pay the TurboTax account fees with a credit card, there would not have been a $40 charge.

[dfmorales5]

Are you saying that I always received $40 less before of my refunds when using Turbo Tax??

[DoninGA]

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@dfmorales5 wrote:

Are you saying that I always received $40 less before of my refunds when using Turbo Tax??

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Not exactly.  When you are asked to pay for the TurboTax account fees you are given the option to either pay with a credit card OR pay from the federal tax refund.  If you Choose pay from the federal tax refund there is a $40 processing fee to use that option.

If you had chosen to pay the TurboTax account fee with your own personal credit card, there is no extra fee to use that option.

[MarilynG1]

Yes, if you paid your TurboTax fees with your Federal refund.  The $40 fee is charged by the bank that handles your refund from the IRS, pays TurboTax, then deposits the rest into your account.

Here's more info on the Refund Processing Service.

@dfmorales5 

[agwellscpa]

I ran into this and realized it was a fee for the $15 I owed for e-filing my state return. My solution was to first e-file my federal return - no fee. Then separately e-file my state return, and pay the $15 with a credit card (instead of having TurboTax withhold that fee from my federal refund - that is why the $40 fee was coming up).

[3MTA3]

This is some very duplicitous work. The fee is buried and they sell it like it's just a convenient service they offer so why not do it.  Seriously, so slimy.  I guess the first class action lawsuit wasn't enough for them and they're itching for another.