Avoid the Surprise Refund Processing Fee

Forum|Forum|6 years ago
October 11, 2019
4 replies
35 views

On one page, Turbo Tax says it’s $24.99 to e-file my state taxes. Next page, it wants to charge my card $39.99 as a Refund Processing Service fee. I’ve Never heard of a refund processing service fee and it’s a horrible thing to surprise people with. How can I avoid paying this Refund Processing Service fee?

xmasbaby0

Level 15

Pay your TurboTax fees upfront with a credit card to avoid that refund processing fee. That is the fee charged for having a third party bank remove your TT fees from your federal refund and sending you the rest.

OR You can also avoid that $24.99 state e-filing fee by printing and mailing your state return instead of e-filing it.

You can still e-file federal--that is free with desktop software. But mail the state. It will save you the $24.99 and the $39.99.

When you mail a tax return, you need to attach any documents showing tax withheld, such as your W-2’s or any 1099’s. Use a mailing service that will track it, such as UPS or certified mail so you will know the IRS and/or your state received the return.

**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.**

Lani BearAuthor

Level 2

Turbo Tax did not tell me that there would be an additional $39.99 fee for having a third party bank remove their $24.99 fee for my state return from my federal refund. And they never gave me a chance to pay any additional fees, up front. I paid $69.99 up front for the TT Deluxe software. That was the only communication from them. I feel that’s highway robbery. Thank you for responding, to let me know. They did not charge this, last year. If this is how it’s going to be, I’ll be shopping for a new tax service, for next year.

xmasbaby0

Level 15

There has always been a state e-filing fee with desktop software. Earlier in the tax season that state e-file fee is $19.99 but later--around mid-March -- it increases to $24.99. Sorry--but in order to have the fees taken out of your refund, they charge the refund processing fee. Of course it is onerous. That is why you should just print the state return and mail it. Or if you really want to e-file state, pay that fee with a credit card to avoid the extra processing fee.

dan34strong

Level 2

Best thing is not to use TurboTax. The government offers a similar program free!

02140

Level 2

That's a pretty snarkey thing to do. I will not be using TurboTax next year because of the hidden fees you have imposed at the very end of my filing.

dmcghee001

Level 2

I filed my taxes on March 6th. I received my federal and state refund in my account. But, I had to pay Turbo Tax $221.90 to file them. I heard that turbo tax is refunding anyone that used Turbo Tax to file 2019 taxes. Is this tire?