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January 12, 2022
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TurboTax Refund wont allow me to pay with federal refund? 1/11/2022

  • January 12, 2022
  • 2 replies
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Hello! I'm currently doing my tax refund for 2022 and I am near the end. The site states I must pay around $100 to complete my tax return, and that I could use my federal refund to pay that amount. When I try to however, It states that I am ineligible, due to insufficient funds from my federal return which is $1,400. Any help would be greatly appreciated.

Best answer by sm3

I would suggest not to pay for turbotax using a refund since you will have to pay Fees + extra $40 (for processing)

2 replies

Employee
January 12, 2022

REFUND PROCESSING

Do you mean you want to pay your TurboTax fees from your federal refund?   If your federal refund will be enough to pay the software fees AND the extra $39.99 refund processing fee to have a third party bank process your refund then when you are in the FILE section you will be able to make that choice.  Please make note that if your refund takes too long to arrive (IRS delays, etc.) then you will also be agreeing that the TurboTax fees can be extracted from your bank account even before your refund is issued by the IRS.  This comes as an unpleasant shock to many people every year.   It is better to pay for the software upfront using a credit card than to face the extra $39.99 fee and the possibility of the fees coming out of your account at a very inconvenient time.

 

And....you can never pay state tax due from a federal refund, so do not expect that.   The state tax due has to be paid directly to your state.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
davidr368Author
January 12, 2022

I apologize, very sleepy. That is exactly what I meant. Paying turbotax fees from the federal refund. it allows me the option to but says it wont allow it because I dont have enough $ in my federal refund. yet, i have 1,400 back

sm3Answer
January 12, 2022

I would suggest not to pay for turbotax using a refund since you will have to pay Fees + extra $40 (for processing)

January 19, 2022

I got a similar question to that myself. This is the first time that I've ever had to pay taxes for anything since I make under $30,000 a year. But what my question is why was I charged three times, when I only should have been paying one amount fee? I was charged $39 three times. First time for federal, second time for state, and third for taking the fees out of my refund. So will I get anything back from the fees?

Employee
January 19, 2022

@bharkless84 When you use online TurboTax you pay a fee for the federal, a fee for the state, and if you choose "refund proccessing" you pay for that too.   No, you will not get that back.   

 

You can avoid the $39.99 refund processing fee by paying upfront using a credit/debit card.

And....

Use this IRS site for other ways to file for free.  There are 8  free software versions available from the IRS Free File site

 

https://apps.irs.gov/app/freeFile/

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**