I filed my tax returns online using the TurboTax Deluxe (includes 1 free state) CD. One Federal filing and 3 state filings (MD, DC, VA). And I wasn't even allowed to e-file my DC tax return online. Why was I charged twice, $79.98 and $39.98 for a federal filing and supposedly1 state filings?
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The reason a person files the federal return free and then like in Montana the State charges $19.99 to e-file...and elects NOT to pay the $19.99 State fee by a credit card charge (right now)...TurboTax charges an additional $39.99 processing fee because they loan the $19.99 to you and then the when the Federal return is processed the $19.99 State charge AND the additional $39.99 charge is both deducted from your federal refund ( not your State refund ) because TurboTax has previously paid the State $19.99 in advance of processing. The moral of the answer is pay with credit card to avoid the processing charges - $39.99 per State or D.C....
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