Why is there a charge to e-file state?

[123456789ne]

I found this statement in a reply of another inquiry when I was searching for the answer to my question..."There is an extra fee to e-file the state.  You can avoid the state e-file fee if you print and mail the state instead of e-filing it."  Why is there a fee to e-file state taxes using Turbotax?  I do not understand why I am required to pay a fee to e-file?

[xmasbaby0]

Are you using the CD/download?   There is an e-file fee to e-file a state return when you use desktop software.

Please see this from the TurboTax site:

https://turbotax.intuit.com/personal-taxes/compare/desktop/

Deluxe

Recommended for:
Maximizing your deductions

$80* Federal

Includes 5 federal e-files

 and

1 state download. State e-file additional

[SForrestLO]

If you are using the software there is a fee to e-file. This information can be found on our website Turbotax.com.

What is included in TurboTax CD/Download

Free Federal E-file Included — Free e-file of your federal tax return is included with your purchase of TurboTax CD/Download.

E-file Multiple Returns — Prepare and e-file up to five (5) federal tax returns at no additional cost. (This is the maximum returns limit set by the IRS.)

E-file State Return(s) — E-file your state return(s) for only $24.99 per state return.** You may e-file up to three (3) state returns per federal tax return.

or Print and Mail Your Return(s) — Print as many copies of your federal and state returns as you need for free when you purchase TurboTax CD/Download.

[123456789ne]

I understand there is a fee to e-file.   I want to know why?

There has to be a reason TurboTax charges it.  I just want to know why?  Does it cost TurboTax  $$ to transfer a file to the state?  Why?

[123456789ne]

I understand the process and what options are available to e-file Federal and cost to e-file state returns.

I want to understand the reason behind the cost to e-file state return. Just curious, because I already paid the fee to file to my state.

[HeatherPLO]

It looks like you are in the downloaded software.

Federal includes the e-file but unless you purchased the product with the free state e-file, there is a fee to electronically file the state return.  This is a separate processing fee to transmit the return.  The fee for the software was just to get the forms.

We can only provide limited information without seeing your data on this public forum.  If you need further assistance, please reach out to us directly using the Help Article here.  This ensures you will get to the correct department as quickly as possible. 

@123456789ne

[Hal_Al · Accepted solution]

Marketing 101: get em in the door and sell em something else, that they didn't know wasn't included.

Here's a couple on interesting tidbits (interesting to me, anyway):
-When you use online TurboTax, the state e-filing is included in the state prep fee, but not in the download version.
-In the download version, New Yorkers are not charged a separate e-filing fee. Why? Because NY mandates e-filing by tax preparers.  

[123456789ne]

It looks like you are not understanding what I am asking, or you cannot answer my question. I feel like what I am asking is clear, so I will conclude you are unable to (you don't know or cannot) answer. 

[fanfare]

@Hal_Al 

The reason there is no e-File fee in NY is NY law prohibits tax software providers from charging an e-File fee.

See the NY revenue website for the mailing address for your paper NY state tax return.

[fanfare]

you paid a fee to get the state program and use it.

Now, to e-File, that is extra.

[123456789ne]

WHY?

[peter-ludemann]

When I downloaded my software, this is what was on the page (copy,paste):

"Free e-file — With TurboTax State you can e-file your return at no additional cost."

But when I go to e-file, it shows "Federal E-file: FREE + State E-file: $25 = DONE!"

Why am I being charged for state e-filing?

(If it's a matter of desktop vs online -- the online version in previous years couldn't handle certain things [foreign tax credit, form 8938, if I remember correctly] so I continue using the desktop version on the assumption that this hasn't changed)

[Cass0317]

The download version includes the following:

• 5 federal e-files and 1 state download (software to prepare your state return). 
• State e-file additional. 

You can avoid the state fee by printing and mailing it in. For more information, please see the products and pricing link here.

@peter-ludemann

[rosm2004]

We know the CD/Download version charges a fee to e-file the state return. The poster was asking WHY. The states aren't charging a fee for e-filing.

It seems the free online version of Turbotax does not charge to e-file the state return, but the PAID download version does. Doesn't seem to make any sense. And $25 is a lot.

My state, Maryland, doesn't require e-filing, but apparently I can, for free. I'm not sure what's involved because I haven't had a chance to look into it, but I think I would have to redo the return I've already done in Turbotax, using their format. Does anyone know? 

[brmwiatt]

Nobody actually answered the question of why. Surely someone at TT can offer a no BS response to this question it hey wanted to.