Cost for turbotax 2017 online how to#

The refund is deposited into that account and then the paid preparer is able to deduct the fees from that account.ДЄ 2012 study by the Government Accountability Office indicated that more than 20 million taxpayers at that time had agreed to programs that would enable them to deduct return preparation fees from their refunds.

To cover those fees, a temporary bank account is set up by a bank that's partnering with a tax preparation firm. Other tax firms, including TaxSlayer and TaxAct, offer ways to have fees deducted from your refund, too, again for an added fee. 'Clients can also choose a Refund Transfer, which includes a temporary bank account through Bofi Federal Bank to receive their refund, which allows the client to pay their tax preparation fees out of this account after our services are complete,' she said. 'Clients can pay upfront with cash, check, debit card or credit card for no additional fee,' said Susan Waldron, a spokesperson for H&R Block. H&R Block has a 'Refund Transfer' service fee of $39.95 for clients who file their taxes at an H&R Block tax office. So, theВ idea of deducting that money out of a tax refund is quite appealing. Many consumers don't want to hand over $100, $200 or more on the spot to get their taxes done or access tax software. The file-now-pay-later option isn't just being offered via TurboTax, of course. You can certainly e-file or direct-deposit your refund without choosing Refund Processing,' TurboTax states online. 'Despite the somewhat misleading name, you don't need Refund Processing to process your refund! It's just a convenient way to pay for TurboTax if you don't have (or don't want to use) your credit or debit card. What is refund processing? Even TurboTax has to admit it's kind of an odd term.

Once your 'e-filed return is inВ pendingВ orВ acceptedВ 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.

Cost for turbotax 2017 online how to#

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 donвЂ™t pay for TurboTax until you file your taxes,' she said. 'This is an added convenience offered for those customers who donвЂ™t have their credit card handy - and is completely optional.В 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.ДЄfter 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, warnedВ 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 anotherВ 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 servicesВ from your federal income tax refund. Watch Video: Getting a big tax refund? That might not be a good thingД¬onsumers 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.