More Bang For Your Buck: Avoiding tax fees - NBC12 - WWBT - Richmond, VA News On Your Side

More Bang For Your Buck: Avoiding tax fees

RICHMOND, VA (WWBT) -

I have used TurboTax religiously for the past 10 years. I find the process extremely simple and it makes filing my federal and state taxes less of a headache.

This year I didn't wait until the last minute. I went ahead and got them done last weekend. Not much had changed until I got to the end. Federal filing went through..no problem. Then it was time for the state.

When you e-file your state taxes,using TurboTax, there's a $19.99 fee. I've always had that amount deducted from my refund. But when I looked at my summary, there was a Refund Processing Service Fee for $34.99.

So I read through the four pages of fine print for an explanation. If you want the $19.99 state fee deducted from your refund, it will cost you. This $34.99 fee pays for a third party bank to accept your refund from the government, pay the state fee, forward the remainder to you and then close the account. Using this service doesn't speed or slow the refund process...so who pays $35 to pay $20?

I spoke with an Intuit TurboTax spokesperson who assures me this has been in place for years as an option for consumers who either lacked credit cards or didn't have the funds to pay it out of pocket. This is the first year out of 10 that I've seen it.

The solution is simple. You either have to agree or disagree with these terms to go forward...If you click disagree, the next page will prompt you to enter your credit card information. No more extra fee.

This year, many TurboTax users were forced to upgrade to get their necessary forms. If that's you, the company is offering a $25 rebate to offset that cost.

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