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Why is there a charge to e-file state?

Forum|Forum|4 years ago
April 8, 2022
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I found this statement in a reply of another inquiry when I was searching for the answer to my question..."There is an extra fee to e-file the state. You can avoid the state e-file fee if you print and mail the state instead of e-filing it." Why is there a fee to e-file state taxes using Turbotax? I do not understand why I am required to pay a fee to e-file?

Best answer by Hal_Al

It looks like you are in the downloaded software.

Federal includes the e-file but unless you purchased the product with the free state e-file, there is a fee to electronically file the state return. This is a separate processing fee to transmit the return. The fee for the software was just to get the forms.

We can only provide limited information without seeing your data on this public forum. If you need further assistance, please reach out to us directly using the Help Article here. This ensures you will get to the correct department as quickly as possible.

@123456789ne

Marketing 101: get em in the door and sell em something else, that they didn't know wasn't included.

Here's a couple on interesting tidbits (interesting to me, anyway):
-When you use online TurboTax, the state e-filing is included in the state prep fee, but not in the download version.
-In the download version, New Yorkers are not charged a separate e-filing fee. Why? Because NY mandates e-filing by tax preparers.

X

xmasbaby0

Employee

Are you using the CD/download? There is an e-file fee to e-file a state return when you use desktop software.

Please see this from the TurboTax site:

https://turbotax.intuit.com/personal-taxes/compare/desktop/

Deluxe

Recommended for:
Maximizing your deductions

$80* Federal

Includes 5 federal e-files

and

1 state download. State e-file additional

**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.**

1

123456789neAuthor

I understand there is a fee to e-file. I want to know why?

There has to be a reason TurboTax charges it. I just want to know why? Does it cost TurboTax $$ to transfer a file to the state? Why?

SForrestLO

If you are using the software there is a fee to e-file. This information can be found on our website Turbotax.com.

What is included in TurboTax CD/Download

Free Federal E-file Included — Free e-file of your federal tax return is included with your purchase of TurboTax CD/Download.

E-file Multiple Returns — Prepare and e-file up to five (5) federal tax returns at no additional cost. (This is the maximum returns limit set by the IRS.)

E-file State Return(s) — E-file your state return(s) for only $24.99 per state return.** You may e-file up to three (3) state returns per federal tax return.

or Print and Mail Your Return(s) — Print as many copies of your federal and state returns as you need for free when you purchase TurboTax CD/Download.

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1

123456789neAuthor

I understand the process and what options are available to e-file Federal and cost to e-file state returns.

I want to understand the reason behind the cost to e-file state return. Just curious, because I already paid the fee to file to my state.

H

HeatherPLO

It looks like you are in the downloaded software.

Federal includes the e-file but unless you purchased the product with the free state e-file, there is a fee to electronically file the state return. This is a separate processing fee to transmit the return. The fee for the software was just to get the forms.

We can only provide limited information without seeing your data on this public forum. If you need further assistance, please reach out to us directly using the Help Article here. This ensures you will get to the correct department as quickly as possible.

@123456789ne

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

D

Davefeld

This fee is outrageous. It’s always been a part of the program product I paid for. It amounts to a significant price increase. I file New York taxes and am required to e-file. I must therefore pay an additional fee on top of what I paid to purchase TurboTax. I’ll be looking at alternative products.

VolvoGirl

Employee

There has always been a separate fee $20 early and $25 March 1 to efile state....EXCEPT for New York. NY is free to efile.

Thank you.

at no time did you mention using a 3rd party company that charges to e-file. Last year this was not used!!!

this charge was AFTER I decided to pay for the return. NOT BEFORE!!!!

Without my permission you gave my banking info to TPG. I will not use you again and plan to file a complaint against you

VolvoGirl

Employee

You don't have to use the 3rd party bank. You can pay the fees upfront with a credit card instead of having the fees deducted from your federal refund. Then the IRS will send the refund directly to you without going though the TPG bank.

There is no extra charge to efile. The only charges are to prepare the federal and state returns. The extra $40 Refund Processing Service charge is to have the fees deducted from a refund.

X

xmasbaby0

Employee

The screen does tell you that there will be a fee to use the third party bank when you choose to pay from your federal refund---you apparently missed seeing it on the screen. The state e-file fee is $20 -- increasing to $25 on March 1. If you choose to pay that state e-file fee from your federal refund instead of paying with a credit card or debit card, there is a $40 ($45 in CA) "refund processing fee" to use a third party bank to provide that service.

You do not have to use TT again if you do not want to. But....the information about the fee was there.

If you decide to use TT again sometime----avoid the state e-file fee by filing the state by mail. Then it only costs the price of a stamp.

**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.**

M

Maonki

It’s a bit of a scam, imho. The download version from Amazon says simply “Federal + Stare” so the $26 charge to e-file a State is frustrating. Of course, you can print for free but that’s not the best approach or option and NOT what is implied in the software purchase (surely, the reality is buried in the fine print that most will never read).

Misleading scams like this only encourage customers to look elsewhere.