Hidden Fees

Forum|Forum|2 years ago
February 1, 2024
2 replies
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I did my Federal tax return using Turbo Tax. Last year I did the same with no charges it was free. This year when I got to the end of competing my return and I got a message saying I would have to pay $89 because I needed to use Turbo Tax Deluxe to file my return. I didn’t need the Deluxe program because my return was very basic. I used the Standard Deduction with no additional documentation. My return was identical to the one I filed on my 2022 return except the number changed. No change in the source of my income or no additional investments. Don’t understand why I was charged for the deluxe version which I didn’t need. I was not told of this charge until I got ready to file my taxes. I paid it because I was not given another option. Why was I not given an option before I began the return? This boarders on being unethical. I believe I was using the free version and wasn’t told any difference until the end and not given an option.

DoninGA

Employee

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.

Please Note -

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

hodphyl-aol-com

I had a very similar situation; however, I used the Deluxe version from Staples ($55).

As I was eagerly taking the last steps and agreeing to pay $20 to file my state returns, I was charged an additional $45 for using TurboTax with no opportunity to opt out.

That is a dishonest, fraudulent method to squeeze customers out of a few extra dollars after all the prior claims about how wonderful the system is.

DoninGA

Employee

Unfortunately you did not fully read the message presented in the program. It told you that if you wanted to pay the TurboTax fees they could be paid from the federal tax refund and showed you the service charge for this option. Since you only had the state e-file fee all you needed to do is decline this option and pay the e-file fee with a credit card.

Oldgolfer73Author

I read the instructions and there was no mentioned of having to use a Deluxe Version until the last step before I file my return. The only options given was to pay by having the fee taken out of my return or pay with my credit card. No option was given to decline the deluxe version with a charge of $89. I paid with my credit card. This was a trap to get the Extra $89 out of me. So much for the Free, Free, Free as advertised. Bottom line a tax return last year which was free cost $89 this year.