What is the Refund Processing Service?
The Refund Processing Service (also called pay-with-your-refund) gives you the option to deduct your TurboTax fees from your federal tax refund. It comes in handy if you don't have a credit or debit card to pay your TurboTax fees. Refund Processing won't slow down nor speed up your refund.
Despite the somewhat misleading name, you don't need Refund Processing to process your refund! It's just a convenient way to pay for TurboTax if you don't have (or don't want to use) your credit or debit card. You can certainly e-file or direct-deposit your refund without choosing Refund Processing.
There may be a charge for this service, depending on your situation and which add-ons you choose. We'll display the fees, if any, when you get ready to file.
- You'll need to e-file your federal return; it's not available if you paper-file the federal.
- The Refund Processing option only appears if you have a federal tax refund, and you can only deduct your fees from your federal (not state) refund.
- You'll need to direct-deposit your refund into a single account, and the name on the bank account needs to match the name on the tax return.
- Refund Processing can only be used once to pay your fees.
- Fees (if any) are charged once, when the IRS processes your return. If your return is rejected, you might have to enter your bank account info again, but we won't charge you a second time.