topic Why am I being charged $40 to pay with your refund when I cannot? in Get your taxes done using TurboTax

Why am I being charged $40 to pay with your refund when I cannot?

phuett — Sat, 08 Feb 2020 18:07:46 GMT

Re: Why am I being charged $40 to pay with your refund when I cannot?

ColeenD3 — Sat, 08 Feb 2020 19:05:33 GMT

If you choose to not pay for your return but requested that the fees be withheld from your refund, it has to be handled by a third party. The third party charges for this servicee.

Re: Why am I being charged $40 to pay with your refund when I cannot?

nsteph — Mon, 17 Feb 2020 02:34:22 GMT

I saw this with TurboTax Online this year as well! I clicked Pay with My Refund because I was curious about it, and learned that I did not have enough money in my federal return to do it. But then when I clicked through to the payment screen, it said I owed $40 in addition to the $40 payment for federal (I do Delux) and $40 payment for state!

I went back, because there was no way I was going to pay for something I couldn't even use, and the second time I got to the payment screen that charge was gone.

I was really disappointed with TurboTax Online this year... the lack of transparency on what you're paying for which services, and no final amount next to the Pay button.

Re: Why am I being charged $40 to pay with your refund when I cannot?

CarissaM — Mon, 17 Feb 2020 16:23:13 GMT

If you select to pay with your refund, the only way to remove the charge is to go back and select a different way to pay. Otherwise, the system will still recognize you wish to have the fees deducted from your refund.

Re: Why am I being charged $40 to pay with your refund when I cannot?

Esther51 — Fri, 28 Feb 2020 13:57:46 GMT

Please refund my 42.64–you withdrew on 2-7-2020... I choose free my refund rejected and it was mailed please return my money!!

Re: Why am I being charged $40 to pay with your refund when I cannot?

CassLO — Fri, 28 Feb 2020 17:54:47 GMT

@Esther51 TurboTax Online has always charged a tax preparation fee – not an e-filing fee – to prepare and file federal and state returns. E-filing is included for free.

The same tax preparation fee is charged if you e-file your return or print and mail it in.

To review your TurboTax fees and see what you are being charged for, please see the link below for instructions:

How do I review my fees in TurboTax Online?

Re: Why am I being charged $40 to pay with your refund when I cannot?

Canary-61 — Fri, 21 Oct 2022 16:42:48 GMT

How do I owe 40 dollars to turbo tax

Re: Why am I being charged $40 to pay with your refund when I cannot?

xmasbaby0 — Fri, 21 Oct 2022 19:32:44 GMT

@Canary-61 You have added on to a thread that has posts from other users so we cannot see what software version you are using. You may have upgraded from the Free Edition without realizing. If you entered information not supported by the Free Edition you upgrade to a paid version.

WHY DO I HAVE TO PAY? I WANT THE FREE EDITION

The information that you can enter in Free Edition is pretty limited now. Thanks to the new tax laws that began for 2018 returns, there are no more simple Form 1040EZ or 1040A's. Everything goes on a Form 1040 that has three extra "schedules" with it, and if you need any of those schedules, you are not able to use the Free Edition. Using the standard deduction instead of itemizing does NOT mean you will not need any of those schedules.https://ttlc.intuit.com/questions/4511011-what-happened-to-the-1040a-and-1040ez If you started in the Free Edition and entered any data that required any of those three schedules, you have to upgrade to a paid version and if you are watching the screens carefully you are alerted to the upgrade.

When you chose to “start” in the Free Edition —

Directly below the words “Free Edition” there is a blue link that says “For simple tax returns only” If you click that link it brings 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.

Or—-Use this IRS site for other ways to file for free. There are 8 free software versions available from the IRS Free File site

https://apps.irs.gov/app/freeFile/

If your TurboTax fees are higher than expected, you can reduce them by removing add-ons: