TurboTax turns the screws – charges $9.95 for every additional return done via their software in 2008
Posted on 08 December 2008, at 2:41 pm, by Wayne Schulz
I’ve been using TurboTax for years to prepare my tax return. As a CPA (non-practicing) everyone in my family assumes that I love preparing taxes – so they usually send me their tax data so that I can prepare their taxes. I was somewhat surprised to learn that the TurboTax 2008 program charges $9.95 for each additional return prepared on their software. In prior years they allowed up to 5 returns at no additional cost.
From TurboTax 2008’s Amazon.com product listing:
Filing Multiple Returns? It’s Easy with TurboTax
You can prepare, print and e-file additional returns with TurboTax. For just $9.95 per additional return, you get all the features and benefits of TurboTax, like year-over-year transfer and audit support tools. Plus you can print and federal e-file at no additional charge. Federal e-filing is now included with every TurboTax federal tax return. That means customers who e-filed one or more returns last year will actually pay less this year compared to last year.
Federal e-filing is easy, fast and more accurate than paper filing and eliminates paperwork hassles. You’ll receive IRS confirmation your return has been received and best of all, you’ll get a faster refund—in as little as 8 days.* And you can start and work on as many returns as you like and still use all the tax planning features (scenario and alternative planning) you’ve come to value without having to pay extra.
My question is – why can I prepare unlimited documents and spreadsheets in most software programs – but TurboTax charges an additional fee? This will likely come as a surprise to a number of people who may not notice the change until they install TurboTax on their desktop. I usually buy Turbotax at a warehouse club in early January and seldom have stopped to read the software box to learn of any new changes to the software terms. Hopefully this is a policy that will cause users to switch software and therefore cause Intuit to change their policy. Buyer beware.
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December 8th, 2008 at 6:08 pm
Wayne… Thanks for taking the time to provide your feedback. I will share with you and others what’s changed this year, explain the changes, and then answer your question about why we have a per return fee.
Here is what’s different for 2008.
1. Federal e-filing is now INCLUDED in all TurboTax desktop products. This makes sense since the majority of TurboTax customers now e-file. With this change, the majority of TurboTax customers will actually save a few dollars this year vs. last year. For example, TurboTax Deluxe costs $15 more this year. However, last year we charged a separate $17.95 federal e-file fee. So for the majority of our customers who e-file, they will save $2.95.
2. Customers who prepare multiple returns with TurboTax will be charged $9.95 for each additional return, which includes FEDERAL and STATE preparation/printing and/or federal e-filing at no additional charge. That means customers who e-filed one or more returns last year will actually pay less this year. For example, a customer who used TurboTax Deluxe software last year to prepare and e-file their own federal return and then prepared and e-filed a second return would have paid $80.85 ($44.95 for the boxed software and then $17.95 x 2 for each e-filed fed return). This year, that same customer will pay $69.90 ($59.95 for the boxed software and only $9.95 for the second federal return). Customers who didn’t e-file last year and want to print multiple returns will end up paying more. Customers can start and work on as many returns as they like and still use all the tax planning features without having to pay extra. They also can continue to print unlimited draft returns for review. But for those who never e-filed, we believe once they try it, they will never go back to paper. It’s not just about a fast refund, it’s also about eliminating the paper hassles and enabling you to file early and pay your balance due whenever you choose (for example, e-file in February but automatically schedule your payment for April 15).
We believe that TurboTax remains a great deal, and as always, satisfaction is guaranteed. But if for any reason you don’t believe you’re getting your money’s worth by paying the $9.95 fee, we will refund the fee(s) without question. Right now we’re in the process of creating an automated, online process to make this quick and easy for any customer for whatever reason.
As for why we have this additional fee it’s because there are several activities within TurboTax that represent services. For example, those who file additional returns have access to techical support, federal e-filing, archival services for their return, access to cost-basis calculations that provides historical cost basis information for thousands of stocks, and there is our calculation and biggest refund guarantee. These are all included in the additional fee.
In closing, it’s important to recognize that the vast majority of our customers will pay less this year. For those who will pay more, we believe the price of TurboTax still represents a great deal. If their experience with TurboTax proves otherwise, we encourage them to request a refund of their fees.
I hope this information helps.
Bob Meighan
January 1st, 2009 at 9:47 am
Customers who filed multiple returns by USPS only paid $44.95 last year. The $15 increase, plus the $9.95 charge for extra filings penalizes families with working children, as well as the elderly. We will stop the auto-renew program and look for another product, until a more fair pricing comes back to TurboTax. Very disappointing.
January 2nd, 2009 at 11:37 am
Likewise. I'll simply switch to the competition. The last time TurboTax tried to be "innovative," they got hammered so hard and fast that they quickly relented. We'll see how quickly they turn 180-degrees this time.
January 4th, 2009 at 7:32 am
There are some who do not want to take the chance of submitting returns via e-file do to
secruity concerns. It's pretty obvious those determined to get personal information through
hacking can find a way. Customers should not be punished for trying to be safe.
January 10th, 2009 at 4:16 am
Long time turbo-tax customer until the beginning of 2009, with the new policy of charging $9.95 for x-tra paper or e-file return thereby it does NOT constitute worth buying this product any more.
HINT, BEFORE BUYING TEH NEW VERSION OF TURBO TAX 2008 GO TO amazon.com AND READ THE COMMENTS & RATING FROM PEOPLE WHO HAS BOUGHT TURBO TAX 2008. AND MAKE A GOOD SWITCH BUYING DECISION THEREAFTER.
January 24th, 2009 at 11:38 pm
I have been using Turbo Tax for years. I love the product, however preparing multiple returns for my family and being charged extra to file these returns will make me switch to Taxcut or another tax program. I am very disappointment that Turbo Tax is not giving their customers more options on saving additional returns and have decided to be greedy to increase profits.
Sales will definitely come down from the lost of customers.
I purchased my product through Amazon over a month ago and just found out about the change. I would definitely like to return the product.
January 26th, 2009 at 5:51 am
Rod… The per return fees were rescinded back in early December 2008. You can now prepare and print unlimited returns at no additional charge. Furthermore, TurboTax now includes up to 5 federal e-filed returns (the maximum allowed by the IRS) at no additional charge.
I think you'll find this an excellent value.
Bob Meighan
VP, TurboTax
February 11th, 2009 at 5:35 pm
Not Sure about Bob Meighan's comments….
About 1/15/09, I called Turbo Tax about this problem. I was told only one return was included… So I returned Turbo Tax to COSTCO and bought tax cut. No problems.
INTUIT is also turning off Quicken 2006 in April 2009… They think they can force everyone to pay for a new version.
You better read the fine print on every INTUIT product; they think you need to pay them every year for their software.
February 12th, 2009 at 7:28 am
Dave… It's true. TurboTax allows you to prepare and print an unlimited number of returns at no additional charge. Plus, we now include up to 5 federal e-filed returns (the maximum allowed by the IRS) at no additional fee (each used to be $17.95 last year). With all the discounting I've seen this year, not only is TurboTax potentially priced less than last year, but it includes so much more.
I believe the agent you spoke with was referring to the TurboTax Online service, not the CD version. Sorry for the confusion.
As for Quicken, for many years they have had a policy of turning off the banking functionality after 3 subsequent annual versions. This is to minimize support logistics and reduce the burden of supporting multiple data / download transmission standards that can happen over several years. This is not a new policy.
I hope this information helps.
Bob Meighan
VP, TurboTax