Why is there a $40 processing fee to file federal taxes?

Forum|Forum|1 year ago
March 9, 2025
3 replies
0 views

I have never paid a processing fee before, what changed?

TurboTax Online

SusanY1

The $40 processing fee is to pay the TurboTax fees from your refund. You can avoid this charge by paying instead with a debit or credit card.

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dfmorales5

This fee never existed before why now? Is this something new with Turbo Tax? Who is the fee for?

DoninGA

Employee

@dfmorales5 wrote:

This fee never existed before why now? Is this something new with Turbo Tax? Who is the fee for?

The refund processing fee of $40 has been used for years in TurboTax. It is only when you select to have the TurboTax account fees paid from the federal tax refund. if you had selected to pay the TurboTax account fees with a credit card, there would not have been a $40 charge.

VolvoGirl

Employee

That is optional. The Extra $40 Refund Processing Service charge (45 in California) is if you want to have the fees deducted from your federal refund. You can avoid it by paying upfront with a credit card.

How to review your fees

https://ttlc.intuit.com/community/charges-and-fees/help/how-do-i-review-my-fees-in-turbotax-online/00/26353

Remove Pay with Refund fee

https://ttlc.intuit.com/community/downgrading/help/how-do-i-remove-pay-with-my-refund-fees-in-turbotax-online-and-change-my-payment-method/00/25880

agwellscpa

I ran into this and realized it was a fee for the $15 I owed for e-filing my state return. My solution was to first e-file my federal return - no fee. Then separately e-file my state return, and pay the $15 with a credit card (instead of having TurboTax withhold that fee from my federal refund - that is why the $40 fee was coming up).

3MTA3

This is some very duplicitous work. The fee is buried and they sell it like it's just a convenient service they offer so why not do it. Seriously, so slimy. I guess the first class action lawsuit wasn't enough for them and they're itching for another.