Does Turbotax get a kickback from the IRS when people efile their state returns? I know we have to pay an extra fee for this, unlike 5 federal efiles that are included with TT Deluxe, but it just seems like Turbotax is really pushing people to efile their state returns, above and beyond the convenience factor. It appears that they deliberately make it much harder to paper file a state return. My only conclusion is that TT gets additional money from the IRS when someone efiles a state return. I will continue to mail mine in and save the $25 fee. It's the principle of the thing, more so than the price.
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Since your state return goes to your state and not to the IRS--which is where you send a federal tax return--your idea makes no sense at all. The marketing staff of TT have determined that so many people want the convenience of e-filing state returns that they can charge a fee for the service, since when you use the desktop software you have received the software to prepare the state return. It is called free enterprise. But---continue to be smart---mail your state returns.
I will continue to be smart and mail in my state return, thanks. Even if it was only $1 extra to efile I would still mail it in. As I previously said, it's the principle of the thing, not the price.
And I'm still not convinced that TT doesn't get some sort of kickback from a taxing authority when people pay extra to efile their state return but thanks for trying.
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