TurboTax’s "Pay With My Refund" option (also referred to as its Refund Processing Service) is available for users once all of their federal tax forms are finalized and approved by the IRS. The service will then deduct your TurboTax fees from your federal tax refund.
The "Pay With My Refund" option is available on the TurboTax website and the mobile app. Whether you decide to use the service or not won’t impact the time it takes for your return to be processed.
Who can use the "Pay With My Refund" feature?
Not all taxpayers are eligible to pay their TurboTax fees with the "Pay With My Refund" feature. To use the feature, you’ll have to meet the following requirements:
You have a federal tax refund that amounts to more than your TurboTax fees.
You e-file your federal return.
Your federal tax refund is deposited directly into a single account, and the name on the account matches the name on your tax return.
The "Pay With My Refund" option can only be used once per tax filing year to pay your fees. If the IRS rejects your return, you won’t be charged again, even if the system asks you to enter your bank account information again.
Why can’t I use "Pay With My Refund"?
If you're having trouble deducting your TurboTax fees from your refund, it could be due to several reasons. You can’t use the "Pay With My Refund" option if:
You file a paper tax return.
You aren’t receiving a federal refund.
Your federal refund is less than your fees.
You file with a foreign address.
Your return contains Form 8888, which is used to direct deposit your refund in multiple accounts.
You already used the service to e-file your federal return.
You are only filing a state return.
Is there a charge for "Pay With My Refund"?
According to TurboTax, there might be a charge for the "Pay With My Refund" service depending on your situation and any add-ons you choose. The fees will be displayed when your return is ready to file, and you're charged when the IRS processes your return.
Can I pay TurboTax fees with my state refund?
The "Pay With My Refund" option doesn’t enable you to pay your TurboTax fees with your state tax refund. The fees can only be deducted from your federal tax return. However, you can use the service to pay for the TurboTax fees associated with filing your state tax refund.
How can I get my tax refund quicker?
TurboTax also offers a tax refund advance program for individuals who use the platform to file their taxes. The IRS usually issues tax refunds within 21 days after an e-filed return has been accepted. Taxpayers approved for the tax refund advance program can access funds as quickly as 1–2 hours after the IRS accepts their return.