UPDATE 12-15-2008: Intuit has rescinded this extra fee which we have written about here.
Users of the popular Intuit tax preparation software Turbotax may be in for a surprise when they go to print their second (and subsequent) tax return this year.
The fine print contained on the Amazon web site discloses that for the first time ever, you’ll have to pay $9.95 for each additional tax return file (beyond the one primary return included with the software).
The change is also spelled out in the official license agreement which can be reviewed on Intuit’s web site.
This means that if you’re filing returns for family and friends that you’ll need to pony up the extra fee before you’re able to convert your prior year’s data.
According to comments left on the Amazon user review forum (over 100 negative reviews and growing), in prior years the software limited users to preparing 5 returns (view prior year license information directly on the Intuit site) without any additional fee.
While this fee may be judged fair by some, it will be interesting to see how many are caught unaware by the additional cost.
Link: WayneSchulz
Bob Meighan says
Wayne… Let me start by saying that we are absolutely aware that some TurboTax desktop customers have concerns and objections about the changes we’ve made to TurboTax desktop product pricing and we’re (including me) responding daily to those comments on Amazon and other online sites, blogs, etc.
For all to know, here is what’s different for 2008?
1. Federal e-filing is now INCLUDED in all TurboTax desktop products. This just 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 value, and as always, it is satisfaction GUARANTEED. If for ANY reason our customers aren’t satisfied with having to pay the additional fee, we will refund the fee(s). And we’re in the process of creating an automated, online process to make this quick and easy for any customer.
Let me assure you that Intuit is absolutely committed to listening and responding to customers. We never take customer feedback lightly — and as you note, our customers don’t hesitate to voice their opinions about TurboTax. But I have to tell you, I think that’s one of the reasons that TurboTax is the leading tax prep software year after year – we have millions of loyal, passionate customers who genuinely care about what we do and who take the time to tell us. We deeply value and appreciate the power of that collective energy and feedback.
I hope this information helps
Bob Meighan
VP, TurboTax
Bob Meighan says
Wayne… Let me start by saying that we are absolutely aware that some TurboTax desktop customers have concerns and objections about the changes we’ve made to TurboTax desktop product pricing and we’re (including me) responding daily to those comments on Amazon and other online sites, blogs, etc.
For all to know, here is what’s different for 2008?
1. Federal e-filing is now INCLUDED in all TurboTax desktop products. This just 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 value, and as always, it is satisfaction GUARANTEED. If for ANY reason our customers aren’t satisfied with having to pay the additional fee, we will refund the fee(s). And we’re in the process of creating an automated, online process to make this quick and easy for any customer.
Let me assure you that Intuit is absolutely committed to listening and responding to customers. We never take customer feedback lightly — and as you note, our customers don’t hesitate to voice their opinions about TurboTax. But I have to tell you, I think that’s one of the reasons that TurboTax is the leading tax prep software year after year – we have millions of loyal, passionate customers who genuinely care about what we do and who take the time to tell us. We deeply value and appreciate the power of that collective energy and feedback.
I hope this information helps
Bob Meighan
VP, TurboTax
Thomas Weems says
That was almost the exact form letter I got from Intuit when I expressed my concerns and it very misleading. Yes, many people will save a few bucks but, I expect most, would spend much more money. Many families who do simple returns for their children and mail them in will get hit with $10 bucks for each child.
The simple fact is the “up to five returns” is gone and is really at the heart of most peoples concerns, not the increase in purchase price.
My copy has already been returned and my automatic renewal canceled.
Thomas Weems
Ex Long time TurboTax User
Thomas Weems says
That was almost the exact form letter I got from Intuit when I expressed my concerns and it very misleading. Yes, many people will save a few bucks but, I expect most, would spend much more money. Many families who do simple returns for their children and mail them in will get hit with $10 bucks for each child.
The simple fact is the “up to five returns” is gone and is really at the heart of most peoples concerns, not the increase in purchase price.
My copy has already been returned and my automatic renewal canceled.
Thomas Weems
Ex Long time TurboTax User
Wayne Schulz says
I’m not disputing Intuit’s right to charge whatever amount they see fit and for whatever terms they like.
What I have a concern about is the people who are rushing through the store and pick up a box with Turbotax and don’t realize the pricing model has changed.
Ultimately with these people (and I very well could have been one) they are stuck at the 11th hour ponying up an additional fee for processing their parent’s or children’s tax return.
Wayne Schulz says
I’m not disputing Intuit’s right to charge whatever amount they see fit and for whatever terms they like.
What I have a concern about is the people who are rushing through the store and pick up a box with Turbotax and don’t realize the pricing model has changed.
Ultimately with these people (and I very well could have been one) they are stuck at the 11th hour ponying up an additional fee for processing their parent’s or children’s tax return.
Paula says
Wayne:
This is Paula from H&R Block. TaxCut may be a good option for you this year. We did not increase prices and we are not charging you to prepare and file additional multiple returns. In fact, we have included 5 free federal e-files so you don’t have to make the choice between whether you want to print and mail your returns or e-file your returns. And TaxCut imports from TurboTax software, Quicken and Money.
The MSRP for Premium Federal + E-file is 34.95. It handles complex tax situations including schedule C. In addition to the free 5 federal e-files and no charge to print additional returns, it also includes a free tax advice session from an H&R Block tax professional (Turbo charges $34.95 for advice from a tax professional). And when you e-file you get audit support at no additional charge. This means if the IRS sends you a letter or audits you, we will assign an H&R Block tax professional to help you with the correspondence and even represent you to the IRS. The comparable audit defense product from TurboTax is $34.95. To see a comparison chart follow this link http://digits.hrblock.com/topicsofinterest/efile/truecost.php
Please let me know if there are any questions about TaxCut that I can help you with.
Paula from H&R Block
Paula says
Wayne:
This is Paula from H&R Block. TaxCut may be a good option for you this year. We did not increase prices and we are not charging you to prepare and file additional multiple returns. In fact, we have included 5 free federal e-files so you don’t have to make the choice between whether you want to print and mail your returns or e-file your returns. And TaxCut imports from TurboTax software, Quicken and Money.
The MSRP for Premium Federal + E-file is 34.95. It handles complex tax situations including schedule C. In addition to the free 5 federal e-files and no charge to print additional returns, it also includes a free tax advice session from an H&R Block tax professional (Turbo charges $34.95 for advice from a tax professional). And when you e-file you get audit support at no additional charge. This means if the IRS sends you a letter or audits you, we will assign an H&R Block tax professional to help you with the correspondence and even represent you to the IRS. The comparable audit defense product from TurboTax is $34.95. To see a comparison chart follow this link http://digits.hrblock.com/topicsofinterest/efile/truecost.php
Please let me know if there are any questions about TaxCut that I can help you with.
Paula from H&R Block
Kirk says
Thanks Paula,
I do three returns for my family. I had been using Turbo Tax. Now I’ll definitely try TaxCut this year. This will be my first year e-filing. Five free ones sound good to me.
Kirk says
Thanks Paula,
I do three returns for my family. I had been using Turbo Tax. Now I’ll definitely try TaxCut this year. This will be my first year e-filing. Five free ones sound good to me.