It’s why an airline will advertise a low fare but disclose later that there are fees to check bags. Because of competition, he says businesses often want to advertise the lowest possible price. ‘All-in pricing’īrett Goldberg, the co-founder and co-CEO of TickPick, has been an advocate of “all-in pricing” – which relies on telling consumers the bottom line cost in all advertising. In March, competitor GrubHub was also slapped with a suit by the District of Columbia Attorney General’s office that leveled similar charges. TurboTax is not the only company to trigger complaints about “hidden fees.” Earlier this year, DoorDash found itself as the defendant in a proposed class-action lawsuit alleging that it charged hidden fees during the pandemic. One user pointed out that the fee is mentioned, but they said “it is not crystal clear” what the fee is and what it is for. We’ll simply deduct the $39.99 fee from your federal refund and send the balance to your bank account.” Below the federal refund option, it says, “Don’t worry about pulling out your wallet. TurboTax points out that the page with information about its fees gives users the option to pay with a credit card or pay with their federal refund. But the $39.99 fee to pay the $140 fees is a money grab,” David wrote in his review. I was automatically upgraded to $90 federal fee and $50 state fee. “I just completed my taxes (basic return), refund both state and federal. David, of Hanover, Mass., is one of them. Some customers have said they were not aware of the fee before they selected the option to pay with part of their refund. The point of contention is whether TurboTax is transparent about the refund transfer fee when users electronically file their taxes. “You don't need Refund Processing Service to e-file and process your refund, and refund processing won't slow down or speed up your refund.” How transparent? It's a convenient way to pay for TurboTax if you don't have (or don't want to use) your credit or debit card,” the company explains on its Help page. “The Refund Processing Service is an option for paying your TurboTax fee by deducting it from your federal tax refund. Customers’ other alternative is to pay with a credit card or debit card. TurboTax, which is owned by Intuit, says it has been upfront about what it calls a “refund transfer fee.” The company allows customers who file their taxes online to have TurboTax’s charges deducted from the refund, but it imposes a charge for doing that. The company, however, disputes claims that the fee is “hidden.” Other users posting on ConsumerAffairs and on other forums like Reddit have also complained about the $40 fee. TurboTax is easy to use, but, in the end, they used me.” “There was a state fee that came out of nowhere at the end that I did not have to pay for last year. “Even though I was using the free version, TurboTax hit me with several surprise fees at the end,” Luke, of Salt Lake City, wrote in a ConsumerAffairs review. Recently, however, some users have objected to what they say is a “hidden fee” – a $40 charge when the customer chooses to pay for the service by using a portion of their federal refund. Photo (c) LIgorko - Getty Images TurboTax has become one of the dominant do-it-yourself tax preparation platforms, helping taxpayers prepare their federal and state tax returns.
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