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Level 1

Solved

Did anyone else receive a fee from "VPS Tax Service" on their credit card after paying their taxes through Turbotax and why wasn't the fee stated at the time fo payment?

49 replies
416 views

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TurboTax Self Employed Online

xmasbaby0Answer

Level 15

When you pay your federal tax using a credit or debit card:

https://www.irs.gov/payments/pay-taxes-by-credit-or-debit-card

**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.**

xmasbaby0

Answer

Level 15

When you pay your federal tax using a credit or debit card:

https://www.irs.gov/payments/pay-taxes-by-credit-or-debit-card

SweetieJean

Alumni - Champ

When you use a card to make a purchase from a store or online, the merchant pays the credit card co's processing fee (which is usually a percentage of the purchase amount). However, the IRS is forbidden by law to pay this, so the fee must be charged to you.

Jazzieadams1

Level 2

I want to know if I'm getting a card throw turbo taxes

j-lfrack

Level 2

Yes, this totally blindsided me too. If I had seen the charge, I never would have paid with my card. They have enough of my money already.

s279_2

Level 2

same here. Why was there no notice that an additional fee would be charged.
Would absolutely have used a debit card instead. This is a disgrace - will not be using turbotax again.

SouthEndAL

Level 2

I actually used a debit card, and was charged the same fee.

Hklbrry

Level 2

Yeah this is BS. I could have easily paid with money in the bank. I will be disputing the charge since it was not mentioned ahead of time. Last time using turbo tax.

Evie3752

Level 2

Same here. I attempted to dispute the charge with Turbotax and the customer service rep refused. Insisted it was not their charge, that it was an IRS charge. They take no responsibility to notify people when they select the credit card option there will be an additional fee. All they have to do is enter a message and make users click that they read it. It nearly doubled the cost to do my taxes. Infuriating. Last time ever I will use TurboTax.

joser1

Level 2

Yes, it happened to me as well this year. This is total bull**bleep** because nowhere it says anything about this fee. I had to pay $621 for my taxes, then on top of that I get a fee charge of $15.46. Come on it's not like $621 came from a freaking magical tree. I want that $15.46 refunded back. Turbotax you all need to stop being so secretive and tell us the consumers what to expect. Also, your services are not free as you plainly keep posting but that is another story to boil someone's blood. Not happy at all.

DoninGA

Level 15

@joser1 wrote:

Yes, it happened to me as well this year. This is total bull**bleep** because nowhere it says anything about this fee. I had to pay $621 for my taxes, then on top of that I get a fee charge of $15.46. Come on it's not like $621 came from a freaking magical tree. I want that $15.46 refunded back. Turbotax you all need to stop being so secretive and tell us the consumers what to expect. Also, your services are not free as you plainly keep posting but that is another story to boil someone's blood. Not happy at all.

The Credit Card fees were displayed although they are at the bottom of the screen in small print.

A convenience fee of 2.49% of total amount you owe will be charged by our credit card service provider. There is a minimum convenience fee of $3.95 regardless of your IRS payment obligation..

joser1

Level 2

Buddy, I had to pay the IRS $621 of my own hard earn money. Don't you think I should get a break from that fee? It is ridiculous I have to pay an extra $15.46 for paying that large sum of money to the government. I want a refund for that fee.

martain74

Level 2

Yes, and it was disclosed before submitting. I knew about the $120 to file federal, $50 for state, and the $6.80 processing fee for a credit card payment. It was all there.

grayjaime

Level 2

I help my mom do her taxes with Turbo, and I had just noticed this charge on her card bill. She owed over $3,000.00, so she was charged $93.00. I thought it was only a fee of $3.95. I will have to think about it next time. It’s ridiculous. It is simple to do the taxes on Turbo.

VolvoGirl

Level 15

If you pay the IRS directly online you can pick a different processor or pay directly by a debit to your bank account.

https://www.irs.gov/payments/pay-your-taxes-by-debit-or-credit-card

LostCustomer

Level 2

Yes. We had $113 taken from our account for this undisclosed fee. This is the last time we will be using Turbo Tax after being a customer for over 15 years.

Jcannioto

Level 2

Yes. I did. What’s up with that?

Yroc5000

Level 2

Yes. I called bank and notified it was fraud. Not word back yet.

No fee notification anywhere.

I was charged $194.75 to pay my FERADL INCOME TAXES.

Report it as fraud.

It deserves to be..

Critter-3

Level 15

Just like on the IRS web site there is a fee to use a debit/credit card to pay the taxes ... the only way to do it for free is a direct debit from the checking account. The credit/debit card fees are clearly stated in the TT program and any other DIY income tax program you may use. Failure to read and understand what you are doing is not a failure of the program but of the user.

tdsnwxly

Level 2

Yes, Turbotax, I would really REALLY recommend that you pop a message with the estimated service fee, or put it at the bottom of the credit card page. I would not have paid with my credit card had I known it was going to be as high as it was

saxplayer71

Level 2

I have a fee from VPS TAX Service, I was not aware of this action. I need to resolve this issue.