How To Avoid The Hidden Tax Filing Fee

February 4, 2019

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Filing your taxes has never been easier and receiving your refund has never been quicker.  When you file your taxes online or with an agent, you’re usually given the option to deduct the cost of filing from your federal tax refund.  While this is a convenient feature, experts say you really should pay any fees separately to avoid getting hit with another fee, which may see as deceptive. Here's why. Most tax software programs charge some sort of fee, usually ranging from $40 to $55.  However what is murky is the option to have fees paid from your tax refund creates an additional fee.  Often referred to as refund processing fee, it can zap an extra $40 on top of the software charge for the "convenience" of not having your debit or credit card handy. This fee is also charged for software that is pitched to you as free! What makes it difficult to detect this fee is that many of these programs are not clear about the fee until you've already been charged and it is virtually impossible to get that refund processing fee returned.  So as you gather your W2s and receipts, make sure to pay for your software or preparer upfront. 

SOURCE: Lifehacker

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