With filing season just around the corner, the tax software wars are heating up.
Earlier this week, MousePrint (sister site to ConsumerWorld.org) issued a “Warning for TurboTax Users.” According to the site, “[r]egular purchasers of Intuit’s TurboTax Deluxe, the top selling desktop tax preparation software program, are in for a nasty surprise this year.” That surprise, according to the website, was that the “full interview sections (Q&As) for filling out Schedule C (self-employment income and all expenses), Schedule D (investments), and Schedule E (rental and partnership income) are no longer in TurboTax Deluxe.” Rather, they require an upgrade to the “Premier” and higher editions.
ConsumerWorld.org founder Edgar Dworsky said about the change, “What a clever ploy. Yank out key parts of the program that people have used for years, and then charge them more money to get back the missing pieces. Imagine the reaction of perhaps millions of regular TurboTax users who may learn partway through doing their taxes that they have to pay an upgrade fee just to get the same functionality they’ve always enjoyed. They are not going to be happy.”
According to Dworsky, Intuit did not do enough to let consumers know about the changes. Some users agree. On Amazon.com, complaints began piling up as reviewers took to the internet to voice their frustrations.
Sensing an opportunity to appeal to unhappy TurboTax customers, H&R Block is already offering a promotion. Any impacted TurboTax customer can get a free copy of the H&R Block Deluxe + State for 2014. According to H&R Block, many of the federal forms and schedules that are no longer included in TurboTax Basic or Deluxe are still included in H&R Block software at no additional charge. To take advantage of the promotion, the company advises customers to send an email to SwitchToBlock@hrblock.com and include the following information:
- Name, address, and phone number
- Type of operating system in use (Windows/Mac)
- A photo, scan, or email showing proof of TurboTax Basic or Deluxe purchase
H&R Block will then send the taxpayer a link for one free download of H&R Block Deluxe + State.
It’s worth noting that this offer is not available via the H&R Block website and can only be redeemed via email. And I should also mention that I haven’t personally tried the newest version of TurboTax Deluxe or H&R Block Deluxe so I can’t vouch for how disruptive the changes are – or how easy it is to switch over to H&R Block.
I did, however, reach out to TurboTax to find out what happened and why. TurboTax spokesperson Julie Miller confirmed the change for the desktop product saying “[w]e made this change because we aspire to deliver the best, Interview-based experience for a customer’s unique tax situation. We believe that¹s what separates TurboTax from other tax software. Our interview, which simplifies tax preparation and breaks down the federal tax code into simple, easy to understand questions – is how we provide real value to our customers.” Additionally, those customers who do upgrade to Premier or Home & Business will receive an additional benefit: credentialed tax experts available via phone and chat at no extra charge.
Miller went on to say that TurboTax did notify consumers of the change on retail packaging, displays and websites. The changes are also noted on TurboTax.com (the 4-1/2 star reviews on the site are much more positive than at Amazon).
According to Miller, only a small percentage of desktop customers are affected. The majority of customers are those who use the online service (about 80%) and those folks are not affected at all. About 20% of customers use the desktop product though not all of them will be impacted by the change.
Miller agrees that some customers will pay more this year than last year. However, she notes, some will pay less. Taxpayers who file with the 1040EZ or the 1040A (a sort of hybrid between the 1040 and the 1040EZ) can opt for a new, lower priced TurboTax desktop product at retail. The result is that the company believes “it’s the best decision to help ensure each customer gets the best TurboTax experience for their unique tax situation.”
As for those unhappy customers? Miller says that TurboTax is working directly with them to explain the changes. Saying that the company is sensitive to customer feedback, she encourages those who want more information to contact TurboTax directly.
