Why is TurboTax charging me a refund processing fee? (2024)

Why is TurboTax charging me a refund processing fee?

You can use your federal refund to pay your TurboTax fees. There's a $40 processing fee charged by the bank that handles the transaction when the IRS processes your return. If your return is rejected, you might have to enter your bank account information again, but you won't be charged a second time.

How do I remove TurboTax refund processing fee?

How do I avoid the refund processing service fee on TurboTax?

Instructions for the TurboTax mobile app

Select Finish and File. Select You've chosen to deduct your TurboTax fees from your federal refund. Go to and select View payment options. Choose a payment option other than paying with your federal refund.

What is the refund processing fee on TurboTax?

Yes, TurboTax offers the option to deduct your TurboTax Full Service fees from your federal (not state) refund. This option is called Pay With My Refund (also known as Refund Processing Service), and there's a $40 processing fee charged by the third-party bank that handles the transaction.

Why am I being charged to pay with my refund TurboTax?

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.

Why isn't TurboTax giving me the option to pay with my refund?

To use the Pay With Your Refund option, your IRS refund amount must be sufficient to cover your prep fees, fees for any additional products and services, and applicable sales tax. When you get ready to file, we won't offer Pay With Your Refund if your IRS refund isn't enough to cover your total bill.

Why does TurboTax charge 40% to pay with a refund?

There's a $40 processing fee charged by the bank that handles the transaction when the IRS processes your return. If your return is rejected, you might have to enter your bank account information again, but you won't be charged a second time.

Can I dispute TurboTax charge?

To dispute a posted charge, log in to your account for more information. Note that you cannot dispute a transaction until it is posted. If you let someone use your card or card number, you are responsible for those transactions.

Why is TurboTax charging me $39?

Yes, there is a $39 fee for using the "Pay With My Refund" option to have TurboTax fees deducted from your federal tax refund. You can always remove that option to save the $39 fee, as long as you haven't yet e-filed.

Will the processing fee be refunded?

Would I be entitled to get the processing fee back from them? Some banks refund the processing fee if the loan is declined, provided they have given a commitment to do so. However, where the loan processing has been completed and the loan amount has been sanctioned, the processing fees will not be refunded.

Why is TurboTax charging me for federal and state?

If you are using the online editions the state program is not $40, it is $50. The service charge of $40 is for using the option to pay the TurboTax account fees with the federal tax refund.

Why is TurboTax charging me 89?

$89 is for the Self Employed version federal return. The state is a separate $39. Or if you want the fee deducted from your federal refund there is an Extra $40 Refund Processing Service charge (45 in California). https://ttlc.intuit.com/community/charges-and-fees/help/how-do-i-review-my-fees-in-turbotax-online/0...

Is there a 40 dollar processing fee for TurboTax?

You don't gave to pay the Extra $40 Refund Processing Service charge (45 in California). That's only to have the fees deducted from your refund. It is optional. Avoid it by paying the fees with a credit card.

How do I know if TurboTax took a fee out?

After signing in to TurboTax, open or continue your return. Select Tax Tools from the menu, and then Tools. A Tools Center box will pop up on your screen. Select My Fees.

Why is TurboTax charging me for Deluxe?

If we detect that your tax situation requires expanded coverage, like deductions for owning a home, unemployment income, or self-employment income, we'll prompt you to upgrade to a version that supports the forms you need so that we can maximize your tax deductions and ensure you file an accurate return.

Why is my refund still processing?

Reasons Your Tax Refund Can Be Delayed

Errors such as an incomplete filing status. Missing information. A need for additional review. Possible identity theft or tax fraud.

Is FreeTaxUSA or TurboTax better?

FreeTaxUSA offers many of the same features as TurboTax at a much lower cost in most cases. But TurboTax has a better interface and is praised for its ease of use, including digital uploads of most forms to speed the process.

Why might someone be auto debited for TurboTax fees after filing TurboTax?

You can also be auto-debited if you signed up for Pay With My Refund and your refund is sufficient, but the IRS is still holding your refund 36 days after your original estimated refund date.

Why is my 2024 refund so low?

You may be in line for a smaller tax refund this year if your income rose in 2023. Earning a lot of interest in a bank account could also lead to a smaller refund. A smaller refund isn't necessarily terrible, since it means you got paid sooner rather than loaning the IRS money for no good reason.

Why is my federal tax refund $0?

A zero-tax refund actually means you're doing something right. Financial experts espouse that this is a good thing because you haven't given the IRS the use of more money through withholdings each month than you'll owe.

Does TurboTax give you a bigger refund?

TurboTax is one of the more expensive tax return services, but it provides some guarantees that may make it worthwhile. For example, the company guarantees you won't get a bigger refund anywhere else.

How do I change my tax refund payment method?

Every year you file your tax return, you must enter your direct deposit information to get your refund electronically. This information includes your bank information. If you enter your information incorrectly, you can call the IRS at 1-800-829-1040 to have it changed.

How much does TurboTax charge to e-file federal returns?

Why do I always owe with TurboTax?

If you owe more than you did in the previous tax year, it may be because you elected to take fewer deductions. Some examples include: Skipping an IRA contribution. Fewer charitable contributions.

Is TurboTax being investigated?

Intuit pulled its “free, free, free” ads in 2022, after the FTC and all 50 state attorneys general began investigating Intuit's advertising, but the company continued to tout free tax prep. Of course, for most customers, TurboTax wasn't free.