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Kelseem
New Member

Why is it that turbo tax says its free but yet i paid over $100 to file? this is absurd

 
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10 Replies

Why is it that turbo tax says its free but yet i paid over $100 to file? this is absurd

https://turbotax.intuit.com/personal-taxes/online/free-edition.jsp

 

If you have not registered, paid or e-filed you can clear and start over in a lower version of the software.

CLEAR AND START OVER

https://ttlc.intuit.com/questions/2586254-how-do-i-clear-and-start-over

 

You are posting fromDeluxe $39

State return $39

Refund processing to have fees deducted from federal refund by 3rd party bank $40 ($45 in CA) (This fee is optional and can be avoided by paying TT upfront using a credit/debit card)

 

WHY DO I HAVE TO PAY?  I WANT THE FREE EDITION

 

The information that you can enter in Free Edition is pretty limited now.  Thanks to the new tax laws that began for 2018 returns, there are no more simple Form 1040EZ or 1040A's.  Everything goes on a Form 1040 that has three extra "schedules" with it, and if you need any of those schedules, you are not able to use the Free Edition.  Using the standard deduction instead of itemizing does NOT mean you will not need any of those schedules.https://ttlc.intuit.com/questions/4511011-what-happened-to-the-1040a-and-1040ez   If you started in the Free Edition and entered any data that required any of those three schedules, you have to upgrade to a paid version and if you are watching the screens carefully you are alerted to the upgrade.

 

 

When you chose to “start”  in the Free Edition —

Directly below the words “Free Edition” there is a blue link that says “For simple tax returns only”   If you click that link it brings up this information:

 

 

You can file with TurboTax Free Edition if you have a simple tax return.*

*A simple tax return is Form 1040 only.

Situations covered in TurboTax Free Edition include:

  • W-2 income
  • Limited interest and dividend income reported on a 1099-INT or 1099-DIV
  • Claiming the standard deduction
  • Earned Income Tax Credit (EIC)
  • Child tax credits
  • Student Loan Interest deduction

Situations not covered in TurboTax Free Edition include:

  • Itemized deductions
  • Unemployment income reported on a 1099-G
  • Business or 1099-NEC income
  • Stock sales
  • Rental property income
  • Credits, deductions and income reported on schedules 1-3

 

How does TurboTax make any money?

Customers with more complex tax situations will file with our paid TurboTax products that provide all the additional forms and guidance they need. We also offer additional benefits that go beyond filing your taxes, but they are optional and are not required to file simple taxes for free. We hope that, over time, as our customers with simple returns need more capabilities as their financial situations change (for example owning a home, having a child, managing investments), they have loved our products and services so much that they will choose our paid TurboTax offerings to prepare and file their returns.

 

 

 

Or—-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/

 

 

How can I see my TurboTax  fees? 

 

  https://ttlc.intuit.com/questions/2565973-how-do-i-review-my-fees-in-turbotax-online

 

If your TurboTax fees are higher than expected, you can reduce them by removing add-ons     (BEFORE you e-file) :

 

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Why is it that turbo tax says its free but yet i paid over $100 to file? this is absurd

The TurboTax Free online edition is for very simple tax returns that do not require any other form or schedule other than the Form 1040.  If your tax data requires entry on any other form or schedule then you must upgrade to the Deluxe edition or higher.

 

Go to this TurboTax website for the Free online edition - https://turbotax.intuit.com/personal-taxes/online/free-edition.jsp

 

TurboTax Online: Important Details about Filing Form 1040 Returns with Limited Credits

A Form 1040 return with limited credits is one that's filed using IRS Form 1040 only (with the exception of the specific covered situations described below). Roughly 37% of taxpayers are eligible.

If you have a Form 1040 return and are claiming limited credits only, you can file for free yourself with TurboTax Free Edition or TurboTax Live Assisted Basic (if available), or you can file with TurboTax Full Service at the listed price.

Situations covered (assuming no added tax complexity):

  • W-2 income
  • Interest or dividends (1099-INT/1099-DIV) that don’t require filing a Schedule B
  • IRS standard deduction
  • Earned Income Tax Credit (EITC)
  • Child Tax Credit (CTC)
  • Student loan interest deduction

Situations not covered:

  • Itemized deductions claimed on Schedule A
  • Unemployment income reported on a 1099-G
  • Business or 1099-NEC income
  • Stock sales (including crypto investments)
  • Rental property income
  • Credits, deductions and income reported on other forms or schedules
Kelseem
New Member

Why is it that turbo tax says its free but yet i paid over $100 to file? this is absurd

i did have a simple tax return with just my w2's. i wont be using them next year as this was a complete rip off.

Why is it that turbo tax says its free but yet i paid over $100 to file? this is absurd

It is not free, it is free to use the software and create your return.  Then if you are satisfied with the return you almost always pay to file the return.  So free to use it but not to file taxes with it.

Cynthiad66
Expert Alumni

Why is it that turbo tax says its free but yet i paid over $100 to file? this is absurd

TurboTax FREE Edition

 

TurboTax Online: Important Details about Filing Form 1040 Returns with Limited Credits

A Form 1040 return with limited credits is one that's filed using IRS Form 1040 only (with the exception of the specific covered situations described below). Roughly 37% of taxpayers are eligible.

If you have a Form 1040 return and are claiming limited credits only, you can file for free yourself with TurboTax Free Edition or TurboTax Live Assisted Basic (if available), or you can file with TurboTax Full Service at the listed price.

Situations covered (assuming no added tax complexity):

  • W-2 income
  • Interest or dividends (1099-INT/1099-DIV) that don’t require filing a Schedule B
  • IRS standard deduction
  • Earned Income Tax Credit (EITC)
  • Child Tax Credit (CTC)
  • Student loan interest deduction

Situations not covered:

  • Itemized deductions claimed on Schedule A
  • Unemployment income reported on a 1099-G
  • Business or 1099-NEC income
  • Stock sales (including crypto investments)
  • Rental property income
  • Credits, deductions, and income reported on other forms or schedules

@taxlady28 

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Why is it that turbo tax says its free but yet i paid over $100 to file? this is absurd

@Kelseem

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/

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
Kolgen
New Member

Why is it that turbo tax says its free but yet i paid over $100 to file? this is absurd

I have the same issue. I file the most basic form that they offer. Some years it is free, other years I have to pay $30 for the service. On those years I go to the IRS website and select from one of their actually free list of providers. I don't get why turbotax does this as I have never made over 40k in a year, own no property, have nothing invested, don't donate to charity. Yet they change what I pay depending on the year. I always file early as well. As soon as I get my W2s I file. 

Why is it that turbo tax says its free but yet i paid over $100 to file? this is absurd

@Kolgen Your TurboTax fee is not based on your income.   The fee is based on the simplicity or complexity of your tax return.   If you have a very simple return that requires ONLY a Form 1040, you can use the Free Edition.  If you enter anything at all that requires the use of additional forms or schedules, it upgrades you to a paid version.  

 

 

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

 

( AZ, CA, FL, MA, NH, NV, NY, SD, TN, TX, WA, WY )

 

https://directfile.irs.gov/

 

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Why is it that turbo tax says its free but yet i paid over $100 to file? this is absurd

TurboTax is not a charity.  It is a business.  It employs many people and pays their salaries.  It does offer free taxes to people with very simple returns.   But if you have forms that are not included in the free version, then you are charged.   It is like buying a car.   You can pick the lowest price with the least options or you can decide to pay for the luxury version.  For income tax, TurboTax is the luxury version.

Kelseem
New Member

Why is it that turbo tax says its free but yet i paid over $100 to file? this is absurd

And I understand that. I have always had simple returns and have never had to pay this much for turbo tax. So the fact that they say "free tax returns" right when you open the app is just kind of false advertisement.  Everyone is entitled to their opinions obviously and this being ABSURD is mine. Won't be using it again, thanks!

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