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New Member
posted Jun 4, 2019 7:51:31 PM

Did anyone else receive a fee from "VPS Tax Service" on their credit card after paying their taxes through Turbotax and why wasn't the fee stated at the time fo payment?

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1 Best answer
Level 15
Jun 4, 2019 7:51:32 PM

When you pay your federal tax using a credit or debit card:

https://www.irs.gov/payments/pay-taxes-by-credit-or-debit-card

24 Replies
Level 15
Jun 4, 2019 7:51:32 PM

When you pay your federal tax using a credit or debit card:

https://www.irs.gov/payments/pay-taxes-by-credit-or-debit-card

Level 15
Jun 4, 2019 7:51:34 PM

When you use a card to make a purchase from a store or online, the merchant pays the credit card co's processing fee (which is usually a percentage of the purchase amount).  However, the IRS is forbidden by law to pay this, so the fee must be charged to you.

New Member
Jun 4, 2019 7:51:36 PM

Yes, this totally blindsided me too. If I had seen the charge, I never would have paid with my card. They have enough of my money already.

New Member
Jun 4, 2019 7:51:38 PM

same here. Why was there no notice that an additional fee would be charged.
Would absolutely have used a debit card instead. This is a disgrace - will not be using turbotax again.

Returning Member
Jan 21, 2020 12:03:30 PM

I want to know if I'm getting a card throw turbo taxes

New Member
Mar 25, 2020 2:09:44 AM

Yeah this is BS. I could have easily paid with money in the bank.  I will be disputing the charge since it was not mentioned ahead of time.  Last time using turbo tax. 

Level 2
Apr 6, 2020 10:03:51 AM

Same here. I attempted to dispute the charge with Turbotax and the customer service rep refused.  Insisted it was not their charge, that it was an IRS charge.  They take no responsibility to notify people when they select the credit card option there will be an additional fee. All they have to do is enter a message and make users click that they read it. It nearly doubled the cost to do my taxes.  Infuriating.  Last time ever I will use TurboTax.  

Level 2
Apr 6, 2020 10:05:47 AM

That is BS. You need to notify users that if they choose credit card they will be charged the VPS fee.  Failure to disclose that is on you, Turbotax.   

Level 2
Apr 6, 2020 10:06:47 AM

That is BS. You need to notify users that if they choose credit card they will be charged the VPS fee.  Failure to disclose that is on you, Turbotax.   

Level 15
Apr 6, 2020 11:51:14 AM


@Evie3752 wrote:

That is BS. You need to notify users that if they choose credit card they will be charged the VPS fee.  Failure to disclose that is on you, Turbotax.   


The Credit Card fees were displayed although they are at the bottom of the screen in small print.

 

A convenience fee of 2.49% of total amount you owe will be charged by our credit card service provider. There is a minimum convenience fee of $3.95 regardless of your IRS payment obligation..

 

 

Level 2
Apr 6, 2020 12:02:27 PM

Ridiculous. $3.95 would have been acceptable.  You suckered me and many others.  Never will use Turbo again. 

New Member
Apr 8, 2020 10:20:02 AM

Yes, it happened to me as well this year. This is total bull**bleep** because nowhere it says anything about this fee. I had to pay $621 for my taxes, then on top of that I get a fee charge of $15.46. Come on it's not like $621 came from a freaking magical tree. I want that $15.46 refunded back. Turbotax you all need to stop being so secretive and tell us the consumers what to expect. Also, your services are not free as you plainly keep posting but that is another story to boil someone's blood. Not happy at all.

Level 15
Apr 8, 2020 10:21:17 AM


@joser1 wrote:

Yes, it happened to me as well this year. This is total bull**bleep** because nowhere it says anything about this fee. I had to pay $621 for my taxes, then on top of that I get a fee charge of $15.46. Come on it's not like $621 came from a freaking magical tree. I want that $15.46 refunded back. Turbotax you all need to stop being so secretive and tell us the consumers what to expect. Also, your services are not free as you plainly keep posting but that is another story to boil someone's blood. Not happy at all.


The Credit Card fees were displayed although they are at the bottom of the screen in small print.

 

A convenience fee of 2.49% of total amount you owe will be charged by our credit card service provider. There is a minimum convenience fee of $3.95 regardless of your IRS payment obligation..

 

New Member
Apr 14, 2020 2:56:23 PM

Buddy, I had to pay the IRS $621 of my own hard earn money. Don't you think I should get a break from that fee? It is ridiculous I have to pay an extra $15.46 for paying that large sum of money to the government. I want a refund for that fee. 

New Member
Apr 19, 2020 5:37:06 AM

Yes, and it was disclosed before submitting. I knew about the $120 to file federal, $50 for state, and the $6.80 processing fee for a credit card payment. It was all there.

Level 1
Jun 22, 2020 8:35:21 AM

This is bad UX. This should be messaged earlier in the process and emphasized when paying. 

Returning Member
Jul 3, 2020 11:56:36 AM

I help my mom do her taxes with Turbo, and I had just noticed this charge on her card bill. She owed over $3,000.00, so she was charged $93.00. I thought it was only a fee of $3.95. I will have to think about it next time. It’s ridiculous. It is simple to do the taxes on Turbo. 

Level 15
Jul 3, 2020 11:59:30 AM

If you pay the IRS directly online you can pick a different processor  or pay directly by a debit to your bank account.

https://www.irs.gov/payments/pay-your-taxes-by-debit-or-credit-card 

Level 15
Jul 3, 2020 12:01:48 PM


@grayjaime  wrote:

I help my mom do her taxes with Turbo, and I had just noticed this charge on her card bill. She owed over $3,000.00, so she was charged $93.00. I thought it was only a fee of $3.95. I will have to think about it next time. It’s ridiculous. It is simple to do the taxes on Turbo. 


The Credit Card fees were displayed although they are at the bottom of the screen in small print.

 

A convenience fee of 2.49% of total amount you owe will be charged by our credit card service provider. There is a minimum convenience fee of $3.95 regardless of your IRS payment obligation..

 

All the third party processors used by the IRS when paying by credit or debit card also have convenience fees.

IRS payment website for credit cards - https://www.irs.gov/payments/pay-your-taxes-by-debit-or-credit-card

New Member
Jul 14, 2020 6:20:13 AM

I actually used a debit card, and was charged the same fee.

New Member
Jul 16, 2020 12:10:58 PM

Yes. We had $113 taken from our account for this undisclosed fee. This is the last time we will be using Turbo Tax after being a customer for over 15 years. 

New Member
Jul 17, 2020 7:38:00 AM

Yes. I did. What’s up with that? 

New Member
Jul 17, 2020 4:46:38 PM

Yes. I called bank and notified it was fraud. Not word back yet.

No fee notification anywhere.

I was charged $194.75 to pay my FERADL INCOME TAXES. 

Report it as fraud. 

It deserves to be..

Level 15
Jul 17, 2020 6:05:44 PM

Just like on the IRS web site there is a fee to use a debit/credit card to pay the taxes ... the only way to do it for free is a direct debit from the checking account.  The credit/debit card fees are clearly stated in the TT program and any other DIY income tax program you may use.  Failure to read and understand what you are doing is not a failure of the program but of the user.