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Level 2

Solved

Why is there a charge to e-file state?

Forum|Forum|4 years ago
April 8, 2022
5 replies
1 view

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?

Best answer by Hal_Al

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

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.

xmasbaby0

Level 15

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

**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.**

123456789neAuthor

Level 2

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?

SForrestLO

Level 11

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.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

user17641869918

Level 2

Very funny. TurboTax indicated the state of Georgia charges $20 to e-file that can be deducted from my federal refund. Once I agreed and indicated I wanted to e-file and hit submit, I was informed that there would be a $60 fee. State of Georgia $20 and a processing fee of $40. I called TurboTax and was told that Intuit charges $40 for stat e-filing. Great. My refund was $109 and I paid $60 to e-file. I have used TurboTax was over 10 years but next year, maybe NOT!!!! TurboTax should be programmed to check your state refund and BLAST a warning message that they are charging me over 35% to e-file and the state over 15%. Thanks TurboTax. Spend my $40 wisely.

Wifeycoyote

Level 2

The whole e-file charge for a state return is BS to me. Call it what it is, a "convenience fee", so you don't have to print it out and go to the post office. TT is just pocketing all the money.

I just mail the state return. If my state wants to pay someone to open and scan it in from paper vs. getting it electronically, so be it. All they have to do is make e-file a requirement like NY does and then TT can't charge for it any more.

Here is a draft letter:

Subject: Report of Potential Violation of New York State Law

To: [NYS Taxpayer Rights Advocate]([email address removed]) and [New York State Attorney General's Office]([email address removed])

Dear Sir/Madam,

I am writing to report a potential violation of New York State law by TurboTax, a tax preparation software company. Despite the state law prohibiting tax software providers from charging e-file fees, TurboTax is charging customers a $25 fee for e-filing their state tax returns.

As a concerned citizen and taxpayer, I believe it is important to bring this to the attention of the relevant authorities. I request that your offices investigate this matter and take appropriate action to ensure TurboTax is complying with state law.

Please find below my contact information:

[Your Name]

[Your Email Address]

[Your Phone Number]

I appreciate your attention to this matter and look forward to hearing from you soon.

Sincerely,

[Your Name]

Email addresses:

* NYS Taxpayer Rights Advocate: [email address removed]

* New York State Attorney General's Office: [email address removed]

replace the bolded information with valid contact information. Also, feel free to modify the letter if needed.

Davefeld

Level 3

This fee is outrageous. It’s always been a part of the program product I paid for. It amounts to a significant price increase. I file New York taxes and am required to e-file. I must therefore pay an additional fee on top of what I paid to purchase TurboTax. I’ll be looking at alternative products.

VolvoGirl

Level 15

There has always been a separate fee $20 early and $25 March 1 to efile state....EXCEPT for New York. NY is free to efile.

Davefeld

Level 3

Thank you.

davidjc713

Level 2

at no time did you mention using a 3rd party company that charges to e-file. Last year this was not used!!!

this charge was AFTER I decided to pay for the return. NOT BEFORE!!!!

Without my permission you gave my banking info to TPG. I will not use you again and plan to file a complaint against you

VolvoGirl

Level 15

You don't have to use the 3rd party bank. You can pay the fees upfront with a credit card instead of having the fees deducted from your federal refund. Then the IRS will send the refund directly to you without going though the TPG bank.

There is no extra charge to efile. The only charges are to prepare the federal and state returns. The extra $40 Refund Processing Service charge is to have the fees deducted from a refund.

xmasbaby0

Level 15

The screen does tell you that there will be a fee to use the third party bank when you choose to pay from your federal refund---you apparently missed seeing it on the screen. The state e-file fee is $20 -- increasing to $25 on March 1. If you choose to pay that state e-file fee from your federal refund instead of paying with a credit card or debit card, there is a $40 ($45 in CA) "refund processing fee" to use a third party bank to provide that service.

You do not have to use TT again if you do not want to. But....the information about the fee was there.

If you decide to use TT again sometime----avoid the state e-file fee by filing the state by mail. Then it only costs the price of a stamp.

Maonki

Level 2

It’s a bit of a scam, imho. The download version from Amazon says simply “Federal + Stare” so the $26 charge to e-file a State is frustrating. Of course, you can print for free but that’s not the best approach or option and NOT what is implied in the software purchase (surely, the reality is buried in the fine print that most will never read).

Misleading scams like this only encourage customers to look elsewhere.