Turbo Tax Warning

[livebait]

If you use Turbo Tax be warned NOT to use the Direct Deposit option when and if you E-file. When you select the direct deposit option then the Santa Barbra Bank & Trust gets involved. Your refund is then what is called a ?Refund Anticipation Loan? and there is a 7 ? % ?FEE? deducted from the amount of the refund. Nowhere is this mentioned in the Turbo Tax information bundled with the software. All Turbo Tax says is that the E-File is FREE. Next year I will not be using Turbo Tax because of their deceptive practices.

 

[Limited-Time]

Re: Turbo Tax Warning

Must be new this year. I've gone that route the last several years and never 'paid" Santa Barbra Bank & Trust a dime. Always received the full refund indicated.

 

[beerfilter]

Re: Turbo Tax Warning

I used H&R block , e-file online . No shenannigans so far .
It did cost me some 15 minutes to recover from the laughing fit , when they asked if I was deceased in the year 2008 !


Nope , just another ghost in the machine..
Here's your sign ..

 

[JB]

Re: Turbo Tax Warning

Because I have been retired for 12 years and have only been using Turbo Tax for about 10 the only time I have had any sort of refund coming is when I screwed up and listed capital losses as gains by using the wrong date of acquisition of some assets I sold. I filed an amended return (via Turbo Tax) and the refund check was mailed to me.

I have seen ads for free Federal Turbo Tax basic. I'll bet that crooked bank is behind that deal.

 

[ezbtr]

Re: Turbo Tax Warning

Does it have an option for paying ex wifes lawyer, even though I wn in court and got checks back from CSC??? Really I'm serious - I've used it for a few years and it seems good.

 

[Barnacle_Bill]

Re: Turbo Tax Warning

I've used it for years with no problems. But then I've never used the free one. Sounds like thats how they make money off it.

 

[fishrdan]

Re: Turbo Tax Warning

All Turbo Tax says is that the E-File is FREE.

So I assume you selected the "free E-File" option from Turbo Tax? Can you clarify this.

I did a bit of searching and found, if you pay the E-File fee up front ($12 or whatever) SBBT does not get involved. Don't trust me on this though, I read a bunch of people complaining of the same thing as livebait.

I do think TT has created some questionable business practices if they are not completely up front about any charges related to your refund. From what I've read, TT says the E-filing is free (which they are correct in that the filing is free) but then your refund is directed to a third party who charges you for processing your refund from the IRS and then transferring it to your account. At least that's the way I understand it...

Kind of reminds me of the type of carp that got out country in the mess it's in right now

 

[mthieme]

Re: Turbo Tax Warning

CPA.
$50
Call it a day.

 

[jay_merrill]

Re: Turbo Tax Warning

I'd rather have someone do my taxes and I never take the "refund loans."

What really ticks me off about them, is that the outfits that offer refund loans really take advantage of ignorant people. They don't tell them how much the bank and or preparer is getting off of these transactions. The usual drill, is to merely tell the person that they can get an immediate refund, and then tell them the dollar amount of the net refund.

I also don't use H&R Block, or the other "big" tax preparation services, because their fees are outrageous. Worse yet, most of the preparers have very little experience and are products of a recently attended "tax preparer class." I've had better luck with smaller companies who employ experienced people.

 

[Tyme2fish]

Re: Turbo Tax Warning

Is this related only to TurboTax free? I use the Premier edition that I pay for. If there's a 7.5% "fee" attached to my refund I'm going to be one very unhappy camper.

I made estimated payments this year, my first year of "quitirement" and am looking at a 10K Fed refund. Yeh, I know I overpaid but I sure as heck don't need some bank raking in $750.00 for my "free" e-file deposit.

 

[livebait]

Re: Turbo Tax Warning

I used the Delux version; $54.95 @ Wal-Mart. I have used Turbo Tax for several years but I always mailed the return and if a refund was due The IRS sent me a check. After completing the return the amount due from the IRS was 3,000.00. There was an option at the end of the return that if you E-file(for FREE) you could have the refund direct deposited to your account just enter your bank routing information. This was a couple of weeks ago. I checked my bank balance and noticed a deposit for 2,775.00 dollars. That is when I discovered that Santa Barbra Bank & Trust intercepted the refund, deducted 225.00 from the 3,000.00 and deposited the 2,775.00 to my account.

The management at Turbo Tax decided that if you elected to have direct deposit you wanted your money quickly so they prearranged a loan on your behalf with Santa Barbra Bank & Trust and allowed them to collect (Skim off the top) 7 ? % of the refund. Nice little racket if you ask me. Lessons learned. 1 no good can ever come from giving your bank routing information to anyone. 2 no matter how good you think a product is the maker will shaft you if things get hard. 3 If something seams too easy it is probably not in your best interest. It will not be Turbo Tax next year.

 

[Tyme2fish]

Re: Turbo Tax Warning

Wow!! Thanks for heads up.

I can see a class action lawsuit happening here. The lawyers will retain $224.00 of your e-file charge and you'll get a check for $1.00 for your damages.

 

[joed]

Re: Turbo Tax Warning

Here is the agreement.
http://www.incometaxcorner.com/Tax/01_05_204_2007_RAL_Application.pdf

It says they charge a $30.95 handling fee and $10.00 for state returns.
I wonder if you somehow got Refund Anticipationl Loan instead of waiting for the refund.

In Canada the government will direct deposit to your bank account there is no clearing bank for the refunds that I know of.

 

[jsfinn]

Re: Turbo Tax Warning

I did an online chat session with a Turbo Tax representative. It sounds like you're only charged the fee is you E-File your STATE return and choose to have the fee deducted out of your refund. If you pay your STATE E-File fee by credit card or debit card, I don't think you're charged anything extra. I honestly couldn't get a full answer out of the guy... this is the chat session that lasted about 30 minutes. I gave up.

Please wait while we find an agent to assist you...
You have been connected to 02_Vignesh V.
02_Vignesh V: Thank you for contacting TurboTax Support, may I have a moment while I read your question, Jsfinn?
Jsfinn: Hi - I read on the internet that if I use the e-file option in Turbo Tax, that I'll be charged a 7.5% fee from Santa Barbra Bank & Trust from my refund. Is that true?
02_Vignesh V: Thank you for holding, Jsfinn. I understand that you want to know will you be charged by SBBT.
02_Vignesh V: Am I corect?
Jsfinn: Yes.
02_Vignesh V: Not to worry. I will certainly help you in resolving the issue.
02_Vignesh V: If you pay through your returns then taht processing fee will be included.
Jsfinn: I don't understand what that means.
02_Vignesh V: If you chose Credit/Debit card as payment methods then You will not be charged a processing fee by SBBT..
Jsfinn: If I pay what?
02_Vignesh V: May I know your payment method please?
Jsfinn: Payment method for what?
02_Vignesh V: May I know what exactly you need from us?/
02_Vignesh V: I dont understand your issue.
02_Vignesh V: Sorry.
Jsfinn: I purchased TurboTax Federal+State that includes Federal E-File from Costco.
Jsfinn: I'm under the impression that the Federal E-File is free.
Jsfinn: Is that not true?
02_Vignesh V: Yes.
02_Vignesh V: Only federal.
Jsfinn: Yes what? Federal E-File is free?
02_Vignesh V: I said only Federal Jsfinn.
02_Vignesh V: Only Federal is free.
02_Vignesh V: Only Federal E-file is free.
Jsfinn: Ok, so I will not be charged from my Federal E-File?
02_Vignesh V: You will not be charged for your Federal E-file Jsfinn.
Jsfinn: Ok, I paid $19.95 by credit card to file my State tax return. Will I be charged anything else for that?
02_Vignesh V: Absolutely not Jsfinn.
Jsfinn: In what cases are people being charged 7.5% of their refund by SBBT?
02_Vignesh V: You will not be charged.
02_Vignesh V: There are 2 payment methods.
02_Vignesh V: 1.Credit/debit card.
02_Vignesh V: 2. Paying through your returns.
Jsfinn: When you say "paying through your returns" does that mean "Paying STATE through your returns"? Because the federal e-file is included, nobody would have to pay to file federal, correct?
02_Vignesh V: Paying means payinfg for state returns,paying for program.
Jsfinn: Ok, so if I chose to pay for for e-filing my state returns by taking the fee out of my return, then there would be a 7.5% fee deducted by SBBT, correct?
02_Vignesh V: You are perfect.
Jsfinn: Does that mean "yes"?
02_Vignesh V: Yes.
Jsfinn: Ok, thank you.
02_Vignesh V: Is there anything else I can help you with today?
Jsfinn: Is there any other case when SBBT would deduct a charge from a refund?
Jsfinn: Hello?
02_Vignesh V: You paid through Credit card right?
Jsfinn: Yes.
02_Vignesh V: Then please forget Sbbt charge.
02_Vignesh V: You will not be charged.
Jsfinn: You're going to have to be specific though. I paid to e-file my federal returns with a credit card.
Jsfinn: I'm sorry, that was a mistake, I paid to e-file my STATE returns with a credit card.
Jsfinn: And, I understand that *I* will not be charged but I would like to know when people will be charged by SBBT.
Jsfinn: And Vignesh, we've been at this for about 20 minutes, I'd like to wrap this up.... so, please just provide an answer this time.
02_Vignesh V: Okay I will need to transfer you for assisting you deeper.
02_Vignesh V: We dont have indepth knowlrdge.
02_Vignesh V: Knowledge.
02_Vignesh V: We are from Shop and Buy sectiom.
Jsfinn: OK, thanks for your help, and please transfer me.
02_Vignesh V has left the session.
Please wait while we find an agent from the TT GS Online Chat department to assist you.
All agents are currently busy. Please stand by.
An agent will be with you in a moment. Thank you for your patience.
The next available Agent will be with you in a moment.
An agent will be with you in a moment. Thank you for your patience.

 

[jsfinn]

Re: Turbo Tax Warning

...While I was typing my last post, I was also on the phone waiting for someone at Turbo Tax to answer the phone. The guy on the phone confirmed something similar - there is no extra fee for E-Filing your FEDERAL return. If you E-File your state return, you can either pay $19.95 by credit/debit card or $29.95 out of your return to SBBT. He had never heard of a 7.5% fee.

 

[BoatBuoy]

Re: Turbo Tax Warning

Man that's hilarious - "who's on first." Sounds like TurboTax has gotten India to provide telephone support for answering United States IRS tax questions.

The name Vignesh would provide a hint as to what to expect.

 

[Tyme2fish]

Re: Turbo Tax Warning

OMG!!! Please refer to Tyme's post about telemarketers.

Why can't (cost is the answer) these services retain their "experts" in the good old U.S.A.?
I absolutely hate to talk or text to some obviously intelligent but not up to snuff on U.S.A. jargon. ARRRRRRG

"Ollo!! My name is Steve! Of service may I be to you?

Next sound heard is of a pistol being cocked and the bullet going through my brain!!

STEVE: Ollo? Ollo? Is anybody there?
Hairy Christmas! Hooly Cow. I think that now Tyme is that cow out in the street!!!

 

[waterinthefuel]

Re: Turbo Tax Warning

Hey Fin, be happy, I've never once had a CSR tell me I'm perfect! LOL

 

[jsfinn]

Re: Turbo Tax Warning

"Ollo!! My name is Steve! Of service may I be to you?

QUOTE]


....When they tell me their name is Steve, I usually tell them my name is Vignesh.

 

[aspeck]

Re: Turbo Tax Warning

Thanks, Jsfinn, that makes a lot more sense. I have used TT for many years now ... not for my own taxes, that gets handled by a CPA, but for my FIL, kids, and a few others. The only problem I had with TT was the auto renewal. I hated them sending me an auto renewal at a price higher than I would pay at Wally World or Sam's Club. Had to threaten them to not charge me for the returned, unopened, program last year. Did not get anything from them this year (but did from Sam's).

I didn't think they would be able to charge 7.5% without some sort of notification. Sent my FIL's in last evening, no problem ... will mail state paperwork since it is a wash ... no money back. Glad to know that it will not effect kid's returns either.

Thanks again for putting up with CSR, Jsfinn!