Anyone else feel robbed?

[Hannahemsick]

I am writing to formally express my frustration and disappointment with TurboTax’s fee structure. Your platform advertises a $39 fee, yet an additional $40 is charged simply for the act of filing. This brings the total to $80, which, in my case, amounted to 6% of my entire tax return—a completely unjustifiable amount.

As a tax preparation service, TurboTax has full visibility into users’ earnings, deductions, and financial situations. Yet, despite knowing how much of our hard-earned money is already taken through taxation, your company still imposes excessive fees on those who are simply trying to comply with the law and file their returns. The fact that these charges are not transparently disclosed upfront feels intentionally misleading.

It is unacceptable that TurboTax preys on taxpayers with these hidden and inflated fees. The cost of filing should be clear, fair, and proportionate. Instead, your pricing model capitalizes on those who are expecting refunds—essentially taking a cut of their money for a service that is advertised at a much lower rate.

I am an underpaid preschool teacher and every dollar counts. This kind of business practice erodes trust and damages TurboTax’s reputation. I will not be recommending your service to anyone and will actively encourage others to seek alternative tax filing methods that do not exploit users with unreasonable fees.

[xmasbaby0]

You DO NOT have to choose "refund processing" and pay that extra $40.   If you pay your TurboTax fees upfront using a credit or debit card before you e-file you will not pay that $40 fee.

REMOVE REFUND PROCESSING FEE

https://ttlc.intuit.com/turbotax-support/en-us/help-article/intuit-account-billing/remove-pay-refund...

[Hannahemsick]

It’s still way too much money for a very simple service and if I don’t have 40$ available. (Which is a lot of people who live paycheck to paycheck) Then there is no other option but to take the extra 40$ from your return. But thanks for the information! I just wanted to express that it’s horrible y’all charge anything at all and wondered if people felt the same way 

[VolvoGirl]

Was the $39 for Online Deluxe?  Did you do a state return?   State is a separate fee.  Or you selected to have the $39 deducted from your refund.  There is an Extra $40 Refund Processing Service charge (45 in California).  So go back through the File tab and pay upfront with a credit card to avoid the extra charge.

How to review your fees

https://ttlc.intuit.com/community/charges-and-fees/help/how-do-i-review-my-fees-in-turbotax-online/0...

For help with fees

https://ttlc.intuit.com/community/charges-and-fees/help/what-can-i-do-to-reduce-my-fees/00/26051

Remove Pay with Refund fee

https://ttlc.intuit.com/community/downgrading/help/how-do-i-remove-pay-with-my-refund-fees-in-turbot...

[xmasbaby0]

@Hannahemsick 

Did you already e-file?

If you have not filed---

Use this IRS site for other ways to file for free.  There are 8  free software versions available from the IRS Free File site

https://apps.irs.gov/app/freeFile/

Or—if you live in certain states you may be eligible to use the new IRS Direct File

In Filing Season 2025, Direct File will be available in Alaska, Arizona, California, Connecticut, Florida, Idaho, Kansas, Maine, Maryland, Massachusetts, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Washington, Wisconsin, and Wyoming. 

https://directfile.irs.gov/

https://home.treasury.gov/news/press-releases/jy2629

[Hannahemsick]

Yeah I will next year, I just think it’s crazy how much yall take out!

[Victoriamaciel91]

Absolutely. I’m no longer going to them. I wen on freetaxusa instead and only paid 20 bucks

[HItaxpayer1 · Accepted solution]

Definitely feeling taking advantage of.  Federal tax filing was once free.  2024 federal tax filing shows a cost of $109, which you accept to  begin your federal taxes, and it isn't until you finish the federal and state taxes that you are presented with an additional $40 processing fee and $35 banking transaction fee.  Not sure that I will be completing these transactions.

[xmasbaby0]

@HItaxpayer1

There is not a fee to e-file your tax return or to have direct deposit of your refund.

Did you choose to pay for using TurboTax by having the fee taken out of your federal refund?  That means you will pay an EXTRA FEE of $40 ($45 in CA) to have a third party bank receive your refund from the IRS, take out enough to pay TT, and then send you the rest of the refund.  ( The third party bank keeps the $40 or $45 fee for itself.)

You do not have to do that.   Pay upfront BEFORE you file --- pay using a credit or debit card.

REMOVE REFUND PROCESSING FEE

https://ttlc.intuit.com/turbotax-support/en-us/help-article/intuit-account-billing/remove-pay-refund...

And....you do NOT have to choose the "5 Day Early" refund option---in fact, avoid that like the plague.   Just pay your TT fees upfront with a credit or debit card.

[mesquitebean]

---

@HItaxpayer1 wrote:

Definitely feeling taking advantage of.  Federal tax filing was once free.  2024 federal tax filing shows a cost of $109, which you accept to  begin your federal taxes, and it isn't until you finish the federal and state taxes that you are presented with an additional $40 processing fee and $35 banking transaction fee.  Not sure that I will be completing these transactions.

---

The $40 processing fee is a service fee for choosing to pay the fees out of the Federal refund.  That fee can be avoided by paying for the product fees upfront with credit/debit card.

As for a "$35 banking transaction fee,"  What is that???   Did you choose to pay any taxes owed with a credit card?  i.e., is that a credit card service fee for paying your taxes due with a card?

[HItacpayer1]

The $35 banking transaction fee is for having your tax refund deposited in your bank account as opposed to a new account with some other banking company (I forget which one).

[VolvoGirl]

There is no fee to get your refund Direct Deposit to any account.  It was probably the Extra $40 Refund Processing Service charge (45 in California) to have the Turbo Tax fees deducted from your refund.  

[mesquitebean]

User said there was a $40 fee (I assume for paying out of refund) and also a $35 fee.   I wonder if the $35 might be the fee for choosing "5 Day Early Refund" option into one's own bank account instead of opening a new Credit Karma account?  Maybe that fee increased from $25 on March 1 with other prices??

[HItacpayer1]

$109 to file federal taxes 

$57 to file state taxes 

$40 to pay tax filing with federal return

$35 for direct deposit to your bank account 

[eli700]

Yes i feel robbed. I am a student and simply because i need to add a 1098-t i get automatically updated to TurboTax deluxe. Then they charge an additional 64 dollars for filing state taxes. Which brings the total to 143. Then they proceed to add another 7.37 fee for paying with my credit card. According to me it was supposed to be 2.49%. They charged more than double that.