Why is there a charge for processing state eFile returns?

[jbtpirates]

I don't understand why there is a charge for processing state eFile returns. It seems Turbotax pays nothing for it so why charge the consumer?

[DoninGA]

If you are using the TurboTax desktop CD/Download editions installed on a computer, there is a $25 e-file charge for each state tax return e-filed.  This charge can be avoided by printing and mailing the state tax return.

TurboTax has had a charge to e-file the state tax return since e-filing was available to all the states (except New York state which is free to e-file)

[SS from RI]

I imagine this fee is charged because they can get it.  Seems a bit high since you and I have already purchased the software, but Intuit has us at their mercy.  Does it really cost them $25 to let us e-file??

All states should be like New York, and require that e-filing be free - it saves them the labor of processing mail returns

[jbtpirates]

I agree. They are trying to squeeze out additional revenue from us for no reason. It doesn't cost them anything to allow eFiles for the states so it's obvious what the goal is here. Pretty sad that they do this.

[jbtpirates]

This really doesn't answer my question. I obviously know they are charging us for the state returns and the option to avoid them is to print the returns and mail them. This is what I'm forced to do now. But the question is, why do they charge us? Does it cost Turbotax to process these returns that they feel they need to pass on to the customer? Or do they just do it to earn extra revenue?

[imoknu]

How do I get to a state return that I can print and mail without paying. The charge for each state is $45 each! When you go into the app and go to State Taxes and add a state, it automatically brings you to a shopping cart and prepares to charge you $45 to get through it.

[xmasbaby0]

@imoknu Are you using online TurboTax or are you using desktop download software?   It is not clear from your post which software you are using, although your reference to clicking "Add a state" suggests you are using online.    If you are using online TT, there is a fee for every state return you prepare.   The fees are separate in online for federal and state.   There is no extra fee to e-file when you use online TT.  The fee is the same whether you e-file or file it by mail.  If you prepare a state return using online TT, you have to pay for it.  Filing it by mail will not make it "free."

If you are using desktop download software, the program will usually include ONE software download for the specific state of your choosing.  With that download you can prepare multiple returns for that specific state, but there is a $25 charge to e-file those state returns.  You can file them by mail to avoid the state e-file fee.   If you need to prepare a return for a different state, each state software download will cost you $45, and then you will also contend with the $25 e-file fee.

[baldietax]

If folks are worried about $25 for state e-file they should be using TT desktop not online which I believe is cheaper and doesn't vary with all these different forms needed, especially if you buy it early in tax season when the s/w is generally discounted; or not using TT at all.  Given the first state with desktop is free I'm paying $25 to do my state taxes.  The e-file may be 'free' but it's not like they are ripping anyone off (on this at least), they have to develop and maintain the software for every state which all have different tax laws.  I usually get my taxes done for about $100-125 all-in, it's fine.

[baldietax]

just to clarify tho - if I'd paid $45 for state return I wouldn't expect to then get $25 charge for e-file so it's $70 total to file state, agree that's a lot.  But that's their online pricing model (that I will never touch).