Why is there a first refund transfer fee being charged to my refund?

[bluedeb · Accepted solution]

If you choose to have your TurboTax fees deducted from your Federal refund, then there is a charge for that service, which charged by the bank that handles the transaction.  You can pay by direct debit, or credit card to avoid the fee.

Why am I being charged a refund processing fee on TurboTax?

If you choose the totally optional Refund Processing Service to have your TurboTax account fees paid from the federal tax refund instead of paying the TurboTax account fees upfront with a credit card, then there is a service charge for this option of $39.99.

How do I remove Pay With My Refund fees in TurboTax Online and change my payment method?

If you select Pay with Refund to pay your Turbotax Fees, there’s a $39 processing fee charged by the third-party bank that handles the transaction.

Once your e-filed return is in pending or accepted status, it's too late to remove Pay With My Refund. However, if your return is rejected, you have another opportunity to remove Pay with My Refund.

If your e-file return is not pending or accepted, here's how to change your payment method and remove refund processing fees before you e-file.

Instructions for TurboTax Online

1. Sign in to your account and open or continue your return
2. Select File in the left menu and proceed to the Just...more step screen.
3. On this screen, select Revisit next to You've chosen to deduct your TurboTax fees from your federal refund
4. Select View Payment Options on the next screen and select Pay now on the screen after that
5. Complete payment by entering your credit or debit card information
6. Continue to the Just...more step screen to make sure the Pay With My Refund has been removed. Step 1 should now show that you paid with your credit or debit card

Instructions for mobile app

1. Sign in and open your return, if you aren't already signed in
2. Select the menu icon in the top left corner
3. Select File
4. Select You've chosen to deduct your TurboTax fees from your federal refund
5. Scroll down and select View payment options
6. Choose a payment option other than paying with your federal refund

[cacharellh]

I'm aware of that however there is another fee that was not authorized and is not on my receipt  of payment 

[cacharellh]

[MichelleLO]

We do not have access to your personal information in this public forum.  Only Santa Barbara Tax Products Group would be able to provide an explanation for the additional fee.

Santa Barbara Tax Products Group website

@cacharellh

[limitless22]

@cacharellh did you contact tpg and get resolved?

[CarissaM]

We’re aware of an issue related to your Refund Processing that may have caused you to see a smaller-than-expected refund.

We’re in the process of reimbursing all who were affected. Within the next 24-48 hours, those affected will receive a credit for $36.25 or $37.25. If you were affected, look for a deposit (in the bank account associated with your return) labeled, “ Remaining Federal Refund Due.  If you don't see that deposit in a few business days, please contact our phone customer service by clicking here. @cacharellh @limitless22

[LowEndGirl]

We were not told we would have to pay extra fees to a third party. In the past, refunds have come from TurboTax. I paid all my agreed upon fees to TurboTax. A deposit fee from a third party should be factored in to what TurboTax charges us. 

[CarissaM]

We are unable to view your account here in this public forum. @LowEndGirl

If you had your fees deducted from your refund, you would have to pay the additional fee. 

If you need additional assistance, please click here to contact us by phone. 

[LowEndGirl]

CarissaM, 

you do not need to get into my account to see it. I understand I will pay the fees I agreed to pay…. The TurboTax fees amounted to less than $200. TPG kept $3300!!! That is a problem !!  

[MoniqueLO_]

In this public forum we cannot diagnose why your refund has been reduced. For additional information, please see this Help Article or this TurboTax blog.

It would be necessary to contact TPG for additional information. They are the one who handles your refund if you choose to pay your fees with your refund. Please see this website for contact information: TPG. There is also a blue "Submit a request" button where you can provide your information and describe the issue. 

@LowEndGirl
 

[LowEndGirl]

MoniqueLO, 

i don’t need you to diagnose it. I’ve called IRS, I’ve called TurboTax/Intuit and no one is able to get ahold of TPG…. People are literally sitting for hours on hold waiting to talk to someone. They also do not respond to e-mails. 
TPG is stealing people’s refunds. End of story. 
I have a letter directly from the IRS detailing my refund and confirm other amount of my refund. What TPG deposited is $3300 short. 
I agreed to pay TurboTax $180…. Which is a far cry from $3300.  
I know you think you are doing your job, but look at the thousands of complaints on these community pages and tell me something shady isn’t happening…. 
can you, in good faith stand behind a company (and it’s 3rd party) that is stealing money from innocent people. Many of us are single parents and depend on every penny of our refunds… 

I did not contract with TPG. I contracted with TurboTax and had an agreed upon fee. 

What TurboTax is allowing TPG to do makes them complicit in the theft, fraud and racketeering that is happening. I for one intend to notify every bureau and customer service related organization and federal entity that reports crimes to the FBI until this gets looked at. Too many good people, trusting TurboTax with their lives and lonely, have been scammed. 

[brnbeauty]

Yes I do agree with you on that they are robbing people you bundle up a package stating this is what you're going to take so you could get your refund back, nowhere did it say that they'll will be taking out another fee that's fraud. I would like my money back but I guess that's not going to happen according to TurboTax.