If turbo tax is supposed to be free for federal and state filing... why did I get charged $180?

Forum|Forum|6 years ago
March 16, 2020
2 replies
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TurboTax Premier Online

mesquitebean

Level 15

It depends on what product you use.

TurboTax has 2 free products, but you are not in one of them. You appear to be using Online Premier Edition, which is a paid version--$90 for Federal and $50 for state (if applicable), and if you choose to pay the fees out of your Federal refund, there is an additional $40 service fee ($45 for California filers.) I'll tell you about both free products below, one of which is just as powerful as Premier Edition, if you meet one of the qualifications to use it.

Did you already pay?? It sounds like you chose to pay your fees out of your Federal refund and got charged $90 + $50 + $40 = $180. Have you already filed?

NOTE: If you haven't already filed, you may be able to change editions. If you have already paid/filed, then the following will not apply.

Online Premier is normally used when one has capital gains/losses from transactions of stocks/bonds/mutual funds (Schedule D), or rental/royalty income (Schedule E), or the need to enter a K-1.

The regular Free Edition is for very simple returns and not everyone can use it. Certain forms are not available in Free Edition and require an upgrade to Deluxe or higher, such as any one of Schedules 1-3, itemized deductions, education credits, student loan interest, etc. Did you start in Free Edition and had to upgrade? If you haven't already paid or registered, and if you are sure you don't need Premier (no Schedule D or Schedule E as mentioned above), and if you are sure you don't need a higher level than Free Edition (see FAQ below), you can use the "Clear and Start Over" feature to choose Free Edition, but depending on the complexity of your return you may not be able to use regular Free Edition. See this FAQ on some situations where one cannot use Free Edition:

FAQ: Why do I have to upgrade from Free Edition?
https://ttlc.intuit.com/community/upgrading/help/why-do-i-have-to-upgrade-from-free-edition/00/26379

If you have a very simple return, don't need one of Schedules 1-3, and are sure you don't otherwise need Deluxe or Premier, etc., here's how to start over and choose regular Free Edition:

FAQ: How do I clear and start over in Online TurboTax?

https://ttlc.intuit.com/community/using-turbotax/help/how-do-i-clear-and-start-over-in-turbotax-onli...

The other free product (TurboTax IRS Free File Program) is fully-featured and can prepare all the usual forms and schedules. It is even more powerful than Deluxe or Premier, if you qualify. For example, in addition to Schedules 1-3 it can prepare Schedule C, D, E, F, etc., and enter K-1. But one has to meet one of the qualifications to use. See below:

To qualify for free 2019 federal and state tax returns through the IRS Free File Program delivered by TurboTax, you just need to meet one of these requirements:

Your 2019 household AGI is $36,000 or less; or
You qualify for the Earned Income Tax Credit (EITC); or
In 2019, you served as active duty military (including Reservists and National Guard) with a maximum AGI of $69,000, and you have a military-issued W-2.

If you didn't already pay and file, and if you qualify for that program and want to use it, see these 2 FAQs:

FAQ: What is the TurboTax IRS Free File Program?
https://ttlc.intuit.com/community/choosing-a-product/help/what-is-the-turbotax-free-file-program/01/...

and

FAQ: How do I switch to the TurboTax IRS Free File Program?

https://ttlc.intuit.com/community/downgrading/help/how-do-i-switch-to-turbotax-free-file-program/00/...

jess26

Level 2

Hi, related question. I've been filing my taxes with Turbotax for the past few years. My income has been well under the $36,000 because I am a full-time student so I should have qualified for the IRS Free File program. I was able to file for my taxes for free this year after doing some research and going to the IRS website.

However, during the last 3 years, I paid at least $100 every time I filed taxes with Turbotax because there was no indication on Turbotax's website that I could file my taxes for free as a part of this IRS program and every year, it even directs me to pay for the Deluxe version, since I had a miscellaneous income to report. TLDR; Is it possible to get a refund for my tax returns that were filed the past 3 years because I qualified for the IRS free file program and Turbotax didn't make that clear to the customers that they should've been able to file for free?

I understand that Turbotax needs to make money but it seems unfair that we would be redirected to a paid version when we should have been able to file taxes for free, especially when we're financially struggling. If anything, the website design needs to be fixed so that it is more transparent to consumers so even if I can't get a refund on those orders, I just wanted to provide this feedback. Thanks.

LeonardS

Level 14

TurboTax Free Guarantee: $0 Federal + $0 State + $0 To File offer is available for simple tax returns with TurboTax Free Edition. A simple tax return is Form 1040 only, without any additional schedules. Situations covered include:

W-2 income
Limited interest and dividend income reported on a 1099-INT or 1099-DIV
Claiming the standard deduction
Earned Income Tax Credit (EIC)
Child tax credits

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tommya10

Level 2

Because they are a fraud!! I paid $80 + for my very simple return free??? Not a bit!!!! SCAM!!!

xmasbaby0

Level 15

Directly below the words Free Edition it says "For Simple Returns Only" and you can click those words to bring up this information:

You can file with TurboTax Free Edition if you have a simple tax return.*

*A simple tax return is Form 1040 only.

Situations covered in TurboTax Free Edition include:

W-2 income
Limited interest and dividend income reported on a 1099-INT or 1099-DIV
Claiming the standard deduction
Earned Income Tax Credit (EIC)
Child tax credits
Student Loan Interest deduction

Situations not covered in TurboTax Free Edition include:

Itemized deductions
Unemployment income reported on a 1099-G
Business or 1099-NEC income
Stock sales
Rental property income
Credits, deductions and income reported on schedules 1-3

How does TurboTax make any money?

Customers with more complex tax situations will file with our paid TurboTax products that provide all the additional forms and guidance they need. We also offer additional benefits that go beyond filing your taxes, but they are optional and are not required to file simple taxes for free. We hope that, over time, as our customers with simple returns need more capabilities as their financial situations change (for example owning a home, having a child, managing investments), they have loved our products and services so much that they will choose our paid TurboTax offerings to prepare and file their returns.

**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.**