VPS fee - what is this???

[bmcgregor]

This is absolutely outrageous.  I used Turbo Tax and chose to pay by credit card. I was charged 2.49% service fee through VPS Tax Service. I never saw any disclosure or warning that their would be another $168 "convenience fee" to use my credit card to pay through Turbo Tax software on top of already paying for the software and the filing fees ($110).  Turbox Tax is an online services.  Why am I being charged again??  This needs to be disclosed to your customers!!!

After I was charged the $168 fee, I found the notification on an IRS website  (hidden under additional information link) that states that the 3rd party service Pay1040.com charges 2.49 percent when using Turbo Tax.  I did not have a choice in the TT system prompts to choose another credit card processor. It was not disclosed on the screen, or the fact that 2.49 is higher than what the three processors charge if you do not go through Turbox Tax.  Other processors on the IRS charge less then 2% - but it is disclosed when you use the IRS site.  Using Turbo Tax - you are blind sided to this until it is too late.

[Critter]

Whether you use the direct pay on the IRS website to pay by credit card or you set up the same payment through the TurboTax filing you will pay the same VPS fee either way. This is not a fee that turbo tax charges, this is the third party processing charge that the IRS uses. As already mentioned the IRS is forbidden to reduce your taxes by the amount the credit card company charges for fees there for the taxpayer has to pay the credit card fees so it's added to your bill not subtracted from the irs's balance due.

And you'd best look at your credit card statement as well, because most credit cards also will hit you with a cash advance fee for paying your taxes using the  credit card. Paying any taxes with a credit card is never a smart option unless you earn something like points, cash back  or airline miles to make up for the fee or fees you have to pay.

[bmcgregor]

Perhaps -  But Turbox Tax is getting some of this fee - if not why are the charging more than others.   I called the Pay1040 and they said Turbo Tax Charges 2.49 percent. So its part of the business model for Turbo Tax.

Turbo Tax does not disclose these fees in the software. That is shameful. After using their  "Service" for over 20 years , I am done. I have asked TT for a full refund of what I paid them this year.   Way to go guys.

[Critter]

The fee was disclosed 3 times and you had to agree to the fee before you could continue ... if you did not want to incur the fee you should have said no and choose another payment option   ...   you had the option to pay directly on the IRS site instead ... see their fee structure below. 

 

[Evie3752]

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.   

[Evie3752]

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.   

[LeonardS]

This post by @Critter correctly states that the fees were disclosed and other payment options available.

[Evie3752]

Not disclosed. 

[macuser_22]

Did you *read* the post by Critter in this thread? It most certainly IS disclosed - very clearly.

[Kidoon]

Turbo tax should state, that there is a fee when we pay by credit card. This is outrageous. 
my rights are violated. 

I could have paid by check . 

I am Not paying this fee. 
call Me. Stephan 

[phone number removed]

[Kidoon]

I sus Not  see any disclosure. 

please show me the screen where I have checked credit card. 

[MichelleLO]

We are not able to see your personal information in this public forum. Billing issues can only be handled by contacting TurboTax Customer Support via the TurboTax FAQ below. Use the keywords billing issues so you get to the right person.

What is the TurboTax phone number?

@Kidoon

[Jameso3e]

Thank you Nacy Pelosi and your share holders for finding another way to boost your pockets from my use of a credit card.

[tiger2121]

The biggest ripoff ever!!! DISCLOSE WHAT MY PAYMENT TOTAL IS GOING TO BE WITH THE FEE!!!

[tiger2121]

Disclose the total we are about to be charged, otherwise it is fraud.