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Level 2
posted Apr 8, 2022 4:31:20 PM

Why is there a charge to e-file state?

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?

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1 Best answer
Level 15
Apr 9, 2022 7:40:34 AM

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.  

24 Replies
Level 15
Apr 8, 2022 5:25:47 PM

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

 

Intuit Alumni
Apr 8, 2022 5:30:15 PM

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.

Level 2
Apr 8, 2022 8:37:33 PM

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?

Level 2
Apr 8, 2022 8:53:41 PM

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.

Intuit Alumni
Apr 9, 2022 7:36:26 AM

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

Level 15
Apr 9, 2022 7:40:34 AM

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.  

Level 2
Apr 9, 2022 8:35:31 AM

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. 

Level 15
Apr 9, 2022 2:58:58 PM

@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.

Level 15
Apr 9, 2022 3:00:31 PM

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

Now, to e-File, that is extra.

Level 2
Apr 9, 2022 3:48:44 PM

WHY?

 

Level 2
Apr 12, 2022 9:20:25 PM

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)

Intuit Alumni
Apr 15, 2022 5:38:04 PM

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

Level 3
Apr 17, 2022 10:36:20 AM

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? 

 

 

Level 3
Mar 2, 2023 7:50:33 PM

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

Level 2
Apr 11, 2023 8:35:26 AM

Why can't someone at TT answer the **bleep** question? Everyone on here knows that the downloaded version of TT charges a fee to e-file the state return, but the question is WHY!!! It makes absolutely no sense that to e-file a state return should cost anything. It is better for all involved except I guess TT since they are the ones collecting the fee even after we have paid for the software. Way to be environmentally friendly there TT [sigh]. You force me to print off about a 25+ page state return and snail mail it because of your greed. Why don't you just make the software cost $10-20 more and offer free state e-file? That way everyone would be happier IMO. STOP encouraging the killing of our trees!!! I guess we need to encourage our state congress to enforce free state e-filing like New York.

Level 1
Apr 13, 2023 7:21:25 AM

I absolutely agree with OP. TT is greedy and that's the only answer I see here. Furthermore, if you click the option to pay by deducting from your refund, you'll be facing a $40 extra charge! This fact is well concealed until you're almost done. I cursed out loud, backed up until I could change my mind about e-filing my state return. I have now printed the stupid thing so I can mail it. I'll be looking for different software next year. I'm sick of Intuit gouging me! Isn't the $60 I paid for the software enough?

 

Level 2
Apr 13, 2023 7:37:51 AM

I feel your pain my brother!!! My problem is I have used TT for about 20 years now and for the most part I really do like the software and have received decent support for other issues. Although I do have one issue I reported probably 3-4 years ago that still remains an issue where if you load your prior year return and then go to import some info from a financial service the import will wipe out entries you imported from your prior year return IF you have not already updated them for the current year. I have a bunch of 1099-DIV every year and if I don't update them before doing an import the import will wipe them out.

Level 2
Dec 10, 2023 3:54:25 PM

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. 

Level 15
Dec 10, 2023 3:59:27 PM

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.

Level 2
Dec 10, 2023 4:18:08 PM

Thank you. 

Level 1
Feb 2, 2024 7:56:41 PM

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.

Level 15
Feb 2, 2024 8:02:08 PM

You can pay the $20 state efile fee upfront with a credit card and avoid the Extra $40 Refund Processing Service charge.  And also....then your federal refund will come directly to you without going though the 3rd party bank to take the fees out.  

 

Level 2
Feb 3, 2024 10:08:20 AM

Very easy solution and one that will make you $60 richer. 
Prepare your GA state return using TurboTax. Copy the results to a hard copy paper form and mail it in. Very simple. 

Level 15
Feb 3, 2024 10:10:53 AM

You can print and mail state for free from the Desktop program you don't have to copy it to the paper form.   Unless you are in the Online version.  Then you have to pay the fees to print the return.