Taxes, oh taxes! The annual ritual that can feel like a labyrinth of forms, numbers, and deadlines. But fear not, for if you've chosen TurboTax to navigate this journey, you've picked a powerful ally. While the ultimate goal is to file your return, the question of how and when to pay for TurboTax itself can sometimes be a point of confusion. Many assume payment only happens at the very last step, just before hitting that "File" button. However, there are indeed ways to handle your TurboTax fees before that final submission.
This comprehensive guide will walk you through the various options to pay for your TurboTax software and services ahead of filing, ensuring a smoother, stress-free tax season.
Step 1: Understanding the "Why" of Paying Before Filing – Are You There Yet?
Before we dive into the "how," let's consider why you might want to pay for TurboTax before you're completely finished with your return. Are you in one of these situations?
You're taking your time. Perhaps you're still gathering a few last documents, or you're simply working on your return in stages. Paying for the software upfront can remove a potential hurdle when you're finally ready to file.
You want to lock in a price or discount. Sometimes, TurboTax offers early-bird discounts or promotions. Paying ahead might allow you to take advantage of these.
You're using a specific edition. If you're using a paid edition (like Deluxe, Premier, or Self-Employed), the software functionality is often tied to that purchase. While you can typically start entering data, accessing all features or reviewing your full return might require payment.
You prefer to separate the payment for the software from any tax due. This can help manage your finances more clearly.
If any of these resonate with you, then paying for TurboTax before filing is a viable and often beneficial option! Let's explore how.
Step 2: Navigating to the Payment Section Within TurboTax
TurboTax is designed to guide you through the entire process, including payment. While the exact phrasing or screen might vary slightly depending on the year's software version, the general path to payment before filing remains consistent.
Sub-heading: Accessing the "File" Section (Even if You're Not Filing Yet!)
The key to paying early lies in the "File" section of the TurboTax online program. Don't be deterred by the name – this section isn't just for final submission.
Open or Continue Your Return: First, log in to your TurboTax account and open the tax return you are currently working on.
Locate the "File" Menu Option: On the left-hand side of your TurboTax online program screen, you will typically see a menu. Look for an option labeled "File." Click on it.
Start the Review/Order Process: Within the "File" section, you'll usually see a step-by-step guide. Look for something that says "Step 1: Review your order" or "Start" next to a similar phrase. Select this option. This initiates the payment process without actually submitting your return to the IRS or state.
Step 3: Choosing Your Payment Method for TurboTax Fees
Once you've navigated to the payment section, TurboTax will present you with the available options to pay for their service. It's important to differentiate these fees from any tax you might owe to the government.
Sub-heading: Credit/Debit Card – The Most Common Method
This is the most straightforward and frequently used method.
Select "Pay with Credit Card" or Similar: On the payment options screen, you'll typically see a clear option to pay using a credit or debit card. Select this.
Enter Your Card Details: You'll be prompted to enter your credit or debit card number, expiration date, CVV code, and billing address. Ensure all information is entered accurately.
Review and Confirm: Before finalizing, you'll have a chance to review your order summary and the total amount due for the TurboTax software and any additional services you might have chosen (like state filing or expert assistance). Carefully review everything before confirming the payment.
Confirmation: Once the payment is processed, you should receive an on-screen confirmation and often an email receipt. This confirms that your TurboTax fees have been paid.
Sub-heading: Pay with Federal Refund – A Convenient (but Costly) Option
While you're looking to pay before filing, TurboTax does offer an option to have your fees deducted directly from your federal tax refund. However, be aware that this service typically comes with an additional processing fee.
Choose "Pay with Federal Refund" (if available and desired): On the payment options screen, you might see this choice. If you intend to use your refund to pay, select it.
Understand the Associated Fee: TurboTax will clearly state the additional fee for this service. Factor this into your decision.
Ensure Sufficient Refund: Your federal refund must be large enough to cover both the TurboTax fees and the processing fee. If your refund is smaller than the total amount, this option won't be available.
Direct Deposit Requirement: To use this option, you will generally need to opt for direct deposit of your federal refund.
Confirmation: The system will confirm that your payment method is set to deduct from your refund.
Sub-heading: Understanding the Impact of Early Payment
Once you've paid for TurboTax, the software is essentially unlocked for you to continue working on your return. This means you can save your progress, revisit sections, and make edits without worrying about payment holding you back. You can also print out a preview of your return if you wish, though you cannot print a final, ready-to-file version until your return is complete and reviewed.
Step 4: Completing Your Tax Return (After Paying for TurboTax)
Paying for TurboTax before filing doesn't mean you've filed! It simply means you've settled the cost of the software. You still need to complete your return accurately and thoroughly.
Sub-heading: Double-Checking Your Information
Take your time to ensure everything is correct.
Income and Deductions: Review all your income sources (W-2s, 1099s, etc.) and ensure all eligible deductions and credits have been entered.
Personal Information: Verify your Social Security number, date of birth, address, and dependent information.
Accuracy Check: TurboTax has a "CompleteCheck™" feature that scans your return for potential errors or missing information. Utilize this feature fully! It's your last line of defense against mistakes.
Sub-heading: State Filings and Additional Services
If you opted for state tax filing or any other premium services when you paid, ensure those are also completed within the TurboTax program. The payment you made typically covers these if they were part of your selected package.
Step 5: The Final Filing Step (Once Ready!)
Once you've meticulously reviewed your return and are confident it's complete and accurate, you'll proceed to the actual filing step.
Return to the "File" Section: Go back to the "File" menu option.
Initiate E-filing: Follow the prompts to e-file your federal and state returns. Since you've already paid for the TurboTax service, this step will be seamless.
Confirmation of Submission: TurboTax will provide a confirmation that your return has been submitted. Keep this confirmation for your records.
IRS/State Acceptance: You will typically receive an email from TurboTax (and often directly from the IRS and/or state tax agency) confirming the acceptance of your e-filed return. This is the true indication that your filing is complete.
Frequently Asked Questions (FAQs)
Here are 10 related FAQ questions, all starting with "How to," with quick answers:
How to know if I need to pay for TurboTax?
TurboTax offers a "Free Edition" for simple returns. If your tax situation is more complex (e.g., itemized deductions, self-employment income, investments), you'll likely need a paid version (Deluxe, Premier, Self-Employed). The software will usually guide you to the appropriate version based on your entered data.
How to avoid paying TurboTax fees?
If your income qualifies, you may be eligible for IRS Free File, which allows you to use free tax preparation software, including potentially a TurboTax Free File program accessed directly through the IRS website. Otherwise, for more complex returns, there will typically be a fee for using TurboTax.
How to change my TurboTax payment method after starting?
Generally, you select your payment method for TurboTax fees when you're in the "File" section, reviewing your order summary. If you've already paid, you can't change the method for that specific payment. If you haven't paid yet, you can usually go back and select a different option.
How to check if I've already paid for TurboTax?
Log in to your TurboTax account. Navigate to the "File" section or your account summary. It should clearly indicate whether your TurboTax fees have been paid. You'll also have an email receipt if the payment was successful.
How to get a refund for TurboTax if I don't file?
TurboTax typically has a "Money-Back Guarantee" or "Satisfaction Guarantee." If you haven't filed your return and are dissatisfied, you might be eligible for a refund. Check their official website for their current refund policy and instructions.
How to pay for TurboTax state filing fees separately?
When you reach the payment section in TurboTax, the fees for federal and state filing are usually itemized. You will typically pay for both at the same time as part of your overall TurboTax service fee.
How to pay for TurboTax if I don't have a credit card?
If you don't have a credit card, your primary alternative within TurboTax is often to have the fees deducted from your federal tax refund (with an additional fee). Some desktop versions of TurboTax may also allow payment via a debit card or other electronic methods.
How to print my return before paying for TurboTax?
In the online version, you can typically preview or save a PDF copy of your incomplete return, but you usually cannot print a final, watermarked, or ready-to-file version until the TurboTax software fees are paid.
How to pay for TurboTax if I owe taxes to the IRS?
Paying for TurboTax software is separate from paying any taxes you owe to the IRS. TurboTax will guide you on how to pay your tax liability (e.g., direct debit from bank account, credit card via a third-party processor, check by mail, or installment agreement).
How to pay for TurboTax if I'm using the CD/Download version?
For the CD/Download version, you generally purchase the software upfront, either online or in a retail store. The payment for the software itself is made at the time of purchase, distinct from the online versions where you pay after preparing your return.