How much does TurboTax take out of your refund?

Asked by: Joanny D'Amore  |  Last update: July 13, 2023
Score: 4.6/5 (9 votes)

Pay for TurboTax out of your federal refund: A $39 Refund Processing Service fee applies to this payment method.

Does TurboTax take the fee out of your refund?

We offer the option to deduct your TurboTax fees from your federal (not state) refund. This option is called Pay With My Refund (also known as Refund Processing Service). To qualify for this payment option: Your federal refund must be sufficient to cover your TurboTax fees.

How much will TurboTax charge me to do my taxes?

The most popular version is TurboTax Deluxe, for $59 plus $49 per state. Those with more complex investments may need the $89 Premier version, while self-employed business owners will need the top $119 Self-Employed edition.

Does TurboTax have hidden fees?

No. TurboTax does not have any hidden fees. All of our fees are disclosed in our literature and user agreements.

Why do I have to pay $40 for TurboTax?

H&R Block and TurboTax each charge an additional processing fee of $40 if you agree to pay through your refund. That's $40 on top of the fee you're paying for the package you selected, meaning you could easily double what you expected to pay.

When Will I Get My Refund? - TurboTax Support Video

42 related questions found

Why is TurboTax charging me to file my taxes?

If your tax data requires entry on any other form or schedule then you must upgrade to the Deluxe edition or higher. If you have not paid for the online edition you are using, have not filed your tax return or registered the Free edition, then you can clear your return and start over with a lower priced edition.

How do I avoid paying TurboTax fees?

You can avoid the fee by changing your payment method and paying with a card when you file.

Is TurboTax good to use?

TurboTax is the most expensive option for filing taxes online, but offers a high-quality user interface and access to experts. It's especially valuable for self-employed filers who use QuickBooks integration.

How do I remove a fee from TurboTax?

If you wish to remove the Turbo Tax fees, you would need to clear your return and start from scratch. You can clear and start from scratch as long as you have not registered your account, paid your fees, or chosen to have the fees deducted from your refund.

Does TurboTax steal money?

Intuit, the company behind TurboTax, has agreed to pay out $141 million after it “cheated millions of low-income Americans out of free tax filing services,” in the words of New York Attorney General Letitia James. Most of that money will go to consumers that were tricked into paying for its service.

Why is TurboTax charging me a refund processing fee?

If you select Pay with Refund to pay your Turbotax Fees, there's a $39 processing fee charged by the third-party bank that handles the transaction. Once your e-filed return is in pending or accepted status, it's too late to remove Pay With My Refund.

What happens if I dont pay TurboTax?

Although you will be charged interest and late payment penalties until the taxes you owe are paid in full, the failure to pay rate is decreased from . 5% to . 25% per month while your installment agreement is in effect.

What are the cons of TurboTax?

Disadvantages of TurboTax:
  • Improper usage of software (errors can cause a string of IRS Letters, Audits, Amendments and Penalties)
  • The software is only as good as what the user inputs - Need to learn the software.
  • Possibility of missing deductions and/or overdeducting.

How much does TurboTax charge to e file federal returns?

TurboTax is one of the most popular tax software providers, but it's not the cheapest. TurboTax's four DIY packages cost between $0 and $119 for federal returns, plus an extra $49 for state returns. The more complex your situation, the more expensive it will be.

What is the maximum tax refund you can get?

New for 2021

Married couples filing jointly: $25,100. Singles and married couples filing separately: $12,550. Heads of households: $18,800.

Why is TurboTax charging me 150?

You appear to be using Online Deluxe Edition, which is a paid version--$60 for Federal and $50 for state, and if you choose to pay the fees out of your Federal refund, there is an additional $40 service fee ($45 for California filers.) So if you chose those 3 things, that would account for your $150 in fees.

Does TurboTax charge extra for state returns?

Like H&R Block, TurboTax has a free filing option that allows you to file your federal return and one state return at no cost.

Will TurboTax tell me if I owe taxes?

When filing your tax return the TurboTax program will let you know if you have taxes due or if you will be receiving a refund. If you wish to find out if you owe past taxes due.

Can you go to jail for not filing taxes?

Penalties for tax evasion and fraud

If you have not filed a tax return, you could be charged with a summary offence under the Income Tax Act. If you are found guilty, the penalties can include substantial fines and a prison sentence.

Does TurboTax pay my federal taxes?

Yes, you may pay your taxes using TurboTax. TurboTax allows you to use the Direct Debit feature. Direct debit is a way to pay your IRS taxes directly from your bank account.

Why is TurboTax charging me $80 to file?

If you have not paid for the online edition you are using, have not filed your tax return or registered the Free edition, then you can clear your return and start over with a lower priced edition.

Why is TurboTax charging me 39 to pay with my refund?

The $40 service charge is Not imposed by TurboTax. It is the service charge of the third party processor who received the federal tax refund from the IRS then deducts the TurboTax account fees and their service charge from the federal tax refund.

Why is TurboTax charging me if its free?

Free Edition is for simple returns that file a 1040 with no additional schedules, and is free as long as you don't select any add-ons or upgrades. Review your fees to find out why you're being charged. Then, follow the directions to remove any unwanted charge: Remove PLUS Help & Support.