FROM NEW YORK TIMES:
TAXPAYERS buying commercial software to prepare and electronically file their 2014 income tax returns should double-check that the version they are purchasing fits their needs.
TurboTax, the tax software from Intuit, drew ire from consumers when they learned that its “deluxe” desktop offering, available by download or on CD, had curtailed functions for some tax schedules that previously had been included. To get the program’s full question-and-answer help to complete the schedules, users must upgrade within the program to a version with an extra cost of $30 to $40.
Edgar Dworsky, publisher of the Consumer World website, said this year’s deluxe desktop version doesn’t offer step-by-step interview help for filling out Schedule C (for self-employment and small business income), D (investments) and E (rental and partnership income). Deluxe desktop users may not realize until they are part way through their taxes that they must pay an extra fee to upgrade and finish, he said.
“I think people are going to be surprised,” Mr. Dworsky said, “because the change was not communicated well.”
Consumers have been complaining and posting negative reviews on Amazon.com and in other online forums.
Colleen Gatlin, an Intuit spokeswoman, said TurboTax customers who used the deluxe desktop version to report investment or rental property income generally must use either the “premier” or “home & business” versions, while those who are self-employed must use “home & business.” (However, some simple investment and business situations, like dividends from investments in mutual funds, are still supported in deluxe, she said.)
TurboTax, which has 29 million customers, made the changes last year to its online service, which allowed users to prepare and file returns without downloading programs onto their computer, she said. Customers are migrating away from the desktop offerings, she said, and 80 percent of them now use the online product.
“Bottom line,” she said, “only a small percentage of desktop customers, who make up about 20 percent of all TurboTax customers, will be impacted by these changes.”
Nevertheless, H&R Block jumped at the chance to lure some users away from its larger rival. Block is offering anyone who bought TurboTax’s basic or deluxe software a free download of its own deluxe software. (Block says it has 7.1 million do-it-yourself customers; more than five million use the online product and two million use its desktop software.)
Here are some questions about tax software for filing 2014 taxes
■ How do I take advantage of the no-cost upgrade offer?
To get the free H&R Block deluxe program, you must provide proof, such as an invoice, that you bought a TurboTax basic or deluxe program and email it to switchtoblock@hrblock.com. The company will then send a link for a free download. (Block’s deluxe software sells for $44.95 as a download on its website).
TurboTax is working with unhappy customers “case by case,” said Ms. Gatlin. Mr. Dworsky of Consumer World said he called Intuit to complain and was offered a free upgrade. He advised others who were unhappy to do the same thing.
■ What if I don’t need any of those complex tax schedules?
If you have a simple tax return, you may be eligible for free electronic preparation and filing of your federal taxes from some of the major software providers. TurboTax, for instance, offers free online software and electronic filing for taxpayers using Form 1040 A or 1040 EZ and is also including free state software and filing. TaxAct, another provider, offers a free federal preparation and filing option for simple and complex returns.
Free filing options are also available from the public/private Free File Alliance if you make $60,000 or less.
■ What is this year’s federal tax filing deadline?
Wednesday, April 15. The opening of tax filing season is on Jan. 20
No comments:
Post a Comment