Which TurboTax program are you using? Your post indicates the TurboTax online editions where there are no e-file fees, federal or state.
Using the TurboTax desktop editions there is a e-file fee for a state tax return of $25. This fee can be avoided by printing and mailing the tax return.
If you are using the desktop editions, there was a screen for you to pay the state e-file fee either with a credit card or from your federal tax refund. On the screen you were shown that there was a $40 charge to use this option to pay with the federal tax refund.
@NoMore2025 You need to contact TurboTax support for this matter as they are the only ones that can assist with any type of billing matter. Use the key words Billing Issue when using the phone tree.
You can view what you are being charged for in TurboTax by following these steps:
Open or continue your return.
On Tax Home, select Start or Continue to enter your return.
Select Tax Tools from the menu, and then Tools.
A Tools Center box will pop up on your screen.
Select My Fees.
If these steps don't work (for example, on your mobile device), go to Tax Home and open the Finish & File section. From there you can review your orders, purchases, and fees.
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What software version/what state? Mine was $20/state return. I used to print and mail, as, iirc, it used to be $25. But at $20, and compared to $12 for certified/return receipt USPS, I went ahead and did it electronically.