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The Refund Processing Service is an option you can choose if you do not have a debit or credit card to pay the TurboTax fee. This $34.99 fee is paid to an intermediary bank, since the intermediary bank has to intercept your refund, deduct the TurboTax fee, and then forward your refund to you. The bank charges a fee for this service.
This bank processing fee can easily be avoided simply by paying the TurboTax fee when you e-file with either a debit or credit card.
In regards to your mention of 21 days, this is the average time that the IRS requires to process a tax return, not the amount of time that the bank requires to electronically transfer funds.
The TurboTax FAQ below provides additional information about the Refund Processing Service and explains how to remove it before you e-file:
I had Federal free file and state free file completed my taxes and TurboTax offered me a promotional item to be able to have access to some premium items that really had nothing to do my taxes being filed at all.. Was 1yr access monitor to improving my finances and credit scores and having access to promo add one not tax prep!
TurboTax acknowledged the fact that I was only supposed to be charged 19.99taxes included but aren't willing to do anything about this Bank holding my refund and charging me $49 without permission of a bank processing fee even States total deducted for promotional items 19.99 on my receipts
Short answer: TruboTax is not free. If you have student loans, as many of us do, expect to have no choice but to pay over $100 in fees. This is including the $40 or so fee from the bank they use. And the option, or rather, notification, that you'll have to take on this fee comes halfway through the filing process. The site gets you half way through one of the more annoying things in life and says "Because you have student loan interest to file, you can either start over with someone else/on your own, or pay us a massive fee". And the explanation of this is a page full of information that sends you in circles.
Yeah, what's up?? It says $19.99 to E-File and then I get to the end and it wants me to pay $49.99!! False advertising?? Since I have time I'm just going to mail my return in. Might think about going to H&R Block next year.
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