![]() What is refund processing? Even TurboTax has to admit it's kind of an odd term. Once your "e-filed return is in pending or accepted status, it's too late to remove the Refund Processing Service." But you can only remove that fee before you actually electronically file the return. TurboTax gives steps online in an FAQ on how to remove that $39.99 charge. "This is true regardless of whether you are getting a refund or end up owing money." "You don’t pay for TurboTax until you file your taxes," she said. "This is an added convenience offered for those customers who don’t have their credit card handy - and is completely optional. Customers can also choose to pay with a credit, debit or pre-paid card," said Ashley McMahon, senior manager for corporate communications for Intuit, the maker of TurboTax. TurboTax's response to Twitter complaints is that the "Refund Processing Fee ($39.99) is charged by Santa Barbara Tax Product Group, it is not a TurboTax charge." Some consumers call the charge deceptive.Īfter all, pay money to process a refund? Isn't that part of filing your taxes? This tax season, plenty of consumers already have hit Twitter and other social media to complain about a $39.99 charge that's called a "refund processing fee" when they use TurboTax online. More: How to get the best tax deductions if you have kids, home, student loans More: Owe the IRS? Top tax payment questions, answers ![]() So before you rush - and you do have until April 17, not April 15 to file this year - watch out for potential tax-time tripwires. Waiting until the last-minute to do your taxes could drive you to sign up for some ridiculous fee or click on the wrong thing. It's an extremely expensive proposition," Wu said. "It's basically a two- to three-week loan. You're essentially taking an advance to cover your tax preparation fee, warned Chi Chi Wu, staff attorney for the National Consumer Law Center. So an $80 bill to do your taxes online easily could turn into $120. But what some consumers don't realize is that there's yet another fee, if you don't pay upfront. ![]() The pitch is simple: "Pay nothing out of pocket." How? Well, tax prep firms say you'd deduct what you owe for tax services from your federal income tax refund. "Please check back in mid-June if you need to request a reissue, after all checks have been mailed," the site says.Watch Video: Getting a big tax refund? That might not be a good thingĬonsumers who want to avoid paying upfront to do their taxes online or get them done at a store front could get tripped up by some unexpected and fairly steep fees. To do that, you'll need the claimant ID number from the email that you received. If you haven't received your check by mid-June, you can visit the settlement site and ask for a payment to be reissued. The settlement website notes that while payments are being mailed in May, some people may not receive their checks until June. Intuit stopped participating in the IRS Free File program in July 2021. taxpayers to file their tax returns for free, but less than 3% of taxpayers used Free File in the 2020 tax year, IRS figures show. That effectively shut out people who were eligible for the free file program from using the service, the statement said.įree File, a partnership between the IRS and commercial tax-preparation companies, should allow about 70% of U.S. Why did the TurboTax settlement happen?Ī multi-state investigation found that Intuit used "several deceptive and unfair trade practices that limited consumers' participation in the IRS Free File Program," according to the New York AG's statement.įor instance, Intuit used similar names for its commercial "freemium" product and the IRS Free File service, and it also blocked its IRS Free File landing page from search engine results in the 2019 tax filing season, the investigation found. Most consumers will receive between $29 and $30, the site says, although some individuals who filed for all three of the years covered by the settlement could get about $85, the New York attorney general said. The payment is based on the number of years a consumer used the TurboTax product and whether they qualify. ![]() How much will the TurboTax settlement check be? Payments will be mailed throughout May, the site says. If you are eligible, you should receive an email from the settlement fund administrator that informs you of the approximate amount of your payment. You don't need to do anything, according to the settlement website. How to get your TurboTax settlement check For the 2016 tax year, IRS Free File was available for taxpayers who made $64,000 or less.
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