Why is Sales Tax charged on TURBOTAX STATE RETURN MA TAX YEAR 2019 E-FILE fee?

[Maddog11]

This is the first tax year I've seen sales tax charged on top of the $24.99 MA state return e-file fee. Is this correct, or a TurboTax error?

[xmasbaby0]

No---TurboTax is required to honor the sales tax laws of your state.  If you do not want to pay the $24.99 state e-filing fee + sales tax then you can print sign and mail your state return instead of e-filing it.

[Maddog11]

Would you please be more specific, and reference the Massachusetts tax law that requires sales tax on an e-file fee? Because, according to  https://www.mass.gov/guides/sales-and-use-tax#-tax-exempt-items-&-sales-

"Professional services such as accounting ..." are tax exempt in Massachusetts. I've been under the assumption that the e-file fee met the definition of a professional service, and not a product, and therefore should be tax exempt.  Further, why has TurboTax NOT collected the tax in past years, but is now?

BTW, I'm already aware that printing and mailing is a way to avoid the fee, however since I've already e-filed (and paid the e-file fee) your point is moot, and does not address my original question

[mesquitebean · Accepted solution]

This is mainly a user community forum.  It's possible, but not likely, that a TurboTax employee will see your posting.  You may wish to talk to the folks at TurboTax for anything definitive about their billing procedure in regards to sales tax and whether you were correctly charged or not.

You can use this contact form during  business hours to get a phone number.
https://support.turbotax.intuit.com/contact

[Maddog11]

THANK YOU mesquitebean !!! I appreciate the link to TurboTax support. I searched high and low for a way to contact support directly (after clicking the "Visit customer support" link in the order confirmation email only brought me to the forum), and only as a last resort did I post here. I'll try them during business hours. Thanks again

[aossom]

I found this thread after calling TurboTax about this very issue. I was shocked to see a "sales tax" for Massachusetts residents using TurboTax online despite the fact that we do not have taxes for professional (accounting) services in our state.

The agent I spoke with informed me the policy is motivated by recent Massachusetts legislation which requires online retailers to charge customers the same sales taxes as they would be charged for brick and mortar stores.

However, we are not charged taxes for accounting services--even if they are provided by brick and mortar retailers--because most professional services (including accounting) are exempt from tax according to Massachusetts laws and regulations (see MASS. GEN. LAWS ch. 64H, §§ 1-6 and the MASS. CODE REGS. 64H (830)). Unless a tangible item is received by the customer, which is not the case for TurboTax online, the services are exempt from sales tax. The rules on this are very clear.

You can see the exemption for ‘personal or professional services’ on the official Commonwealth of Massachusetts' website here: https://www.mass.gov/guides/sales-and-use-tax#-tax-exempt-items-&-sales-  

You can also look for ‘accounting and bookkeeping’ at Table 1 and the paragraph labeled ‘Massachusetts’ here: https://www.cga.ct.gov/2019/rpt/pdf/2019-R-0104.pdf

[DoninGA]

@aossom TurboTax does provide accounting software.  TurboTax is a software company which provides do-it-yourself tax return preparation software.

[aossom]

Incorrect. We are discussing TurboTax online.

Customers who use it do not receive tangible personal property in exchange for what they pay.

Tangible personal property are the items subject to sales tax in Massachusetts.

[xmasbaby0]

@aossom TurboTax follows the tax laws of your state.   If you were charged sales tax for using the software for your self-prepared tax return it is because the laws of your state require it.    Many states charge sales tax for the use of this software.

[aossom]

I linked to the laws and regulations. (Kindly see above.) That is our issue. The policy does not comply.

[xmasbaby0]

@aossom No one in the user forum can resolve a billing issue.  If you believe you were billed incorrectly contact customer support.

Make sure you use the word “billing” in your request for help.  Do not use the word “refund.”

To call TurboTax customer support

https://ttlc.intuit.com/questions/1899263-what-is-the-turbotax-phone-number

Customer support is available from 5 a.m. to 5 p.m. Pacific time Monday-Friday.

[aossom]

Hi thanks for your engagement, but kindly read above. I do not know why you continue to want to refute me, but as mentioned I already called customer service and the answer given was not satisfactory. As others have noted, we are directed here when we seek solutions. Trust that I am taking further action, but as a fellow community member, I am able to agree that @Maddog11, @Bill69, @MN66, @steve17 etc. are not out of their minds to be concerned about this.

Here linked the other thread: https://ttlc.intuit.com/community/taxes/discussion/re-why-did-you-charge-sales-tax-on-filing-the-mas... 

Have a good day.

[macuser_22]

---

@aossom wrote:

Hi thanks for your engagement, but kindly read above. I do not know why you continue to want to refute me, but as mentioned I already called customer service and the answer given was not satisfactory. As others have noted, we are directed here when we seek solutions. Trust that I am taking further action, but as a fellow community member, I am able to agree that @Maddog11, @Bill69, @MN66, @steve17 etc. are not out of their minds to be concerned about this.

Here linked the other thread: https://ttlc.intuit.com/community/taxes/discussion/re-why-did-you-charge-sales-tax-on-filing-the-mas... 

Have a good day.

---

Nobody is "refuting" you.   This is  user to user discussions forum.   Nobody here is a TurboTax employee, just other users like yourself who answer tax questions to help other users.   We cannot help you with a credit card charge - only TurboTax  support can and you were told above how to contact them.

[aossom]

To be clear -- I wasn't asking other users to resolve this issue. I was providing information to the user above. As you have noted, answering tax questions to help other users.