Amazon reviewers slam TurboTax fee changes

Updated December 8 at 9 p.m. with Inuit comment.

Revisions incorporated into Intuit's TurboTax 2008 have led to a bit of a tax revolt by reviewers on Amazon.com.

The tax preparation program, which is a top seller at the online retailer, has garnered an Amazon customer rating of one and a half stars out of five. As of Sunday afternoon, an overwhelming 82 reviewers (out of 90) gave the program the minimum one star, compared with four reviewers who gave it the full five-star rating.

However, it's not the features nor functionality with which the majority of reviewers are taking issue. Many reviewers were upset that Intuit increased the retail price of the software from $44.95 for the 2007 edition to $59.95 for the 2008 edition--a 33 percent price bump.

(Credit: Intuit)

Most frustrating for reviewers--many of whom identified themselves as longtime TurboTax users--were the revised fees for the number of returns prepared. This year, Intuit began charging users an additional $9.95 for each additional return they prepare, regardless of whether the return is printed or filed electronically.

An Amazon reviewer who identified himself as Mark Adler said the new fee would increase the cost to him dramatically:

Not only did the price go up (though now including federal e-file "at no extra charge"--yeah, right), but the number of returns you can do was reduced by a factor of five!

Last year's and previous years' software licenses allowed you to do up to five tax returns with the software. Now you can only do one, even if you're just printing returns! You have to pay $10 more for every additional return you print! I do three household returns every year. So for me, the price goes up to $80 retail.

One reviewer identified as "Bill B," who said he has been using TurboTax since 1997 and has always thought of it as "a great program for doing taxes," called the new pricing "unjustifiable and unsubstantiated":

This is a dramatic change from past practice, when the software license allowed PRINTING up to five returns at no additional cost. It is important to note that printing and mailing additional returns comes at no cost to Intuit. And forcing everyone to pay for "free" e-filing through the product price increase is a scam.

While Intuit representatives did not immediately return a request for comment, a few Amazon reviewers did come to the defense of the software company.

A reviewer going by the handle p89jjy717 implored buyers to "read the fine print":

I think all the people who are outraged by the increased price for TurboTax and the $9.95 extra charge for each additional tax return (printed or e-filed) might not have read the product description carefully...I cannot remember what an e-filing cost last year, but I believe it was between $15 and $20. So, if an extra return costs $9.95, but the e-filing is free, there would indeed be a savings. But you have to use e-filing, rather than mailing, to realize the savings.

Another user suggested a certain irony as an answer to the users' complaints:

You don't think you ripped off Intuit for years, doing your son's, your daughters, your neighbor's, and their grandmother's returns for FREE? Geeze.

It should be noted that many of the reviews were posted by first-timers, and the avalanche of outrage is reminiscent of the well-publicized and coordinated user revolt against the new Electronic Arts' game Spore, which resulted in more than 2,000 one-star ratings being left on the game's Amazon page.

A company spokesperson told me that Inuit is aware of the complaints and is responding to those comments daily on Amazon and other Internet communities.

The company defended the pricing changes as saving most users money.

"Federal e-filing is now included in all TurboTax desktop products," said Intuit spokesperson Julie Miller. "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 when they purchase the product versus last year."

Miller also asserted that users who e-filed one or more returns last year will actually save money this year. For more an in-depth explanation of this position, see comments in this report's TalkBack section made by Bob Meighan, vice president of TurboTax.

But Intuit is no stranger to customer frustration. Many last-minute filers were outraged in 2007, when their by overloaded servers. Also affected were TurboTax users' attempts to verify whether a previously filed return had been accepted by the IRS and state tax collectors.

In 2003, Intuit embedded flawed antipiracy technology in TurboTax, and was forced to abandon the idea and apologize to customers.

Two years later, the version of TurboTax designed to handle the 2004 tax year was plagued by glitches and installation problems. It also accidentally directed customers to a phone number used by a sex chat operation called Intimate Encounters.

[JunkSiu]

Well, time to go back to paper filing and they are free to pick up from post office anyway.

[FellowConspirator]

I've really considered taking a 1040 and writing a note in red crayon that says "I don't understand the instructions" with a copy of may various receipts and sending it in. I believe that compliance with the tax code is contingent on the tax payer's capacity to know and understand it. I don't understand it, and, frankly, I have no way to tell if the 1040 and it's many additional attachments correctly represent the tax code, nor do I understand what applies to me specifically (all the forms state "if this applies to you" without qualification, and calling the IRS rarely helps).

[mikeburek]

They are free, but those piles of forms get smaller and they stop re-filling them earlier each year.

[mikeburek]

Most libraries have them also. but those piles of forms get smaller and they stop re-filling them earlier each year.

[solitare_pax]

Actually, the tax forms are available on-line:

http://www.irs.gov/formspubs/

So you can print out as many of them as you wish.

[tech_no_man]

Not necessarily, I went to the U.S.P.S. and was informed that they no longer handled the various tax forms. That I would have to go to a library or a government office to get the forms.

[tm_anon]

Several alternatives to Turbo Tax are available without the hastle of telling the phone sex operator you got a wrong number so please don't charge you, charge your tax preparer instead. There are a few listed on this site. http://www.jimkarpen.com/taxes.html
Also, if you look up taxes online in a Google search, you will find several other options. turbo tax has the top spot, but after this article, I would just overlook that spot and move farther down the list.

[Michichael]

Search Wiki is win. After all, the comment pointing out the above is already there. :)

[dbargen]

Having used this service in the past when in a pinch to get filed on time, I think my time is worth less than the charges of filing myself. I'll have to do some research for a direct comparison, but it may be cheaper (and easier) to go to a CPA or tax service.

That service would vary by location, but perhaps an edit to this article would be useful, eh Steven?

[stevenmusil]

@dbargen: The variables that affect that kind of comparison are numerous and depend on each taxpayer's financial situation: mortgage deduction, capital gains taxes, property taxes, charitable contributions, 1099s, etc. Weigh your comfort and confidence in your accounting skills against your willingness to pay individual tax preparation fees that often go north of $1,000, and you should arrive at a decision that is best for you. But, given the consequences for mistakes, I can see why many would just opt for a tax preparer.

[mrobmsu]

Its a hefty increase, but the fee is still much less than what our local CPAs charge to fill out the same forms. 4 years ago we paid nearly $400 to have our taxes done by a CPA--granted, we had just moved and needed taxes filed in 2 states, but still!

$400 vs. $59--still a no brainer for me.

[DOGBERT6412]

Thats just the software dont forget the extras for more than 1 tax return and 9.95.....:(

[egockel70]

@mrobmsu

$400 vs. $59

yeah but is your time worth nothing?

[WantingToRetire]

Excuse me, but no matter how I go, I have to arrange the tax documents for the accountant and fill out his little 30 page form from which his "helper" can practically fill out the forms. Granted, an accountant looks it over, but it's still a LOT of money when I still do most of the grunt work. Now, if I could take my tax records to the accountant unsorted, I might feel differently. He won't take 'em that way/.

[aircarl43]

But if you switch to TaxCut you can avoid the deceptive charges from TurboTax.

[Orion Blastar]

Well I have to say that Turbo Tax find a way to beat pirates downloading a copy and families sharing copies to print off three or more returns.

I don't know of any alternatives to Turbo Tax but I usually buy the Small Business edition so I can do my parent's small business taxes as well as my own taxes and for my brother-in-law. It usually has a multi-file license because it costs more than the deluxe edition. Some people use Turbo Tax to file taxes for their customers and buy a special version that has unlimited filings, I wonder if that too is $9.95 per file?

[grouchycustomer]

TaxCut is a very workable alternative, and it has always been cheaper than TurboTax. It looks like this year it will be much cheaper. From H & R Block - they know taxes. I was on TurboTax for the last 2 years, and Taxcut for the 10 prior years. I changed to Turbotax for some bundle pricing with Quicken. Will all the taxes I do (joint and two kids), I will be going to Taxcut.

[ScottMo]

I used TurboTax for a while, but switched several years ago to TaxAct ( http://www.taxact.com/ ) . Prepare unlimited returns for $20.00. And its great program. There are lots of alternatives to TurboTax. Really, if people are upset, ditch Turbo Tax and move to an alternative. It appears that Inuit doesn't care too much for its user base or feels it can impose higher fees without repercussions.

Vote with your checkbook.

[sharmajunior]

Looks like Amazon.com is becoming a place where people will soon have petitions...LOL

After trashing Spore's ratings, its time for Turbotax. In a way its nice to get your self heard in this manner.

[Benlofton]

LOL at amazon being the place to start petitioning. So sad its true tho!

[Orion Blastar]

Say I have a theory, let's say you install Turbo Tax to a virtual machine like Virtual PC, VMWare, Xen, Parallels or whatever and then you back up the virtual hard drive file before you start to file. Then after you file you copy the backed up virtual hard drive which has a copy of Turbo Tax before you filed, would it let you file and avoid the $9.95 extra fee?

Just a thought.

[mikeburek]

Depends on if it talks to Intuit's computers over the internet. You could set up the VM machine to not have an internet connection. If it required authentication over the internet, it might take 1 or 2 tries before finding the right time. Maybe if you find another people trying the same thing, you can coordinate your efforts to figure it out. And maybe grab some network traffic monitoring software.

[groundhunter]

I am a member of Turbo Tax Inner Circle. Comments there are as strong and upset as the ones on Amazon. For the two comments above supporting Intuit, it is not a matter of reading the fine print, it is a matter of dramatically changing the rules while at the same time suggesting that e-file is for free when in fact the cost is now reflected by an increase in price. Additionally a desk top software that had the ability to provide service to the main filer and to perhaps aging parents or to working children was replaced with an intrusive and very restrictive cost for printing and/or filing more than one return. It is essentially a use once program that dramatically reduces its cost effectiveness.

It was not ripping Turbo Tax off by using the product within the five return limit that theTurbo Tax license provided.

Overall the product is improved this year, but Intuit has not done a great job at customer relations with their piggish pricing policies. Can anyone say customer revolt?

[JoeF2]

Well, Intuit has a history of doing a bad customer relations job, as the 2003 issue with their completely idiotic anti-piracy stuff showed.
It was impossible to install on my machine, and I am a knowledgeable techie...
I returned my copy of TurboTax and went with TaxCut instead.
They are facing the same thing this time around.

As a long-standing Turbo Tax customer, I have already revolted. I purchased Tax Cut last week. In the past, I used the software to prepare my immediately family's tax returns (me, 2 kids and my mother), which was allowed by the license. Now that would cost me an additional ~$30.00. That is on top of the increase to $59.99 for the software.
The change in the cost to print returns is not posted prominently on the box, and many consumers will be caught unaware when they go to print a second return. Given the mood most people are in when preparing taxes, right at the point of printing is not the right time to tell a customer that they've been victim of a stealth price increase. Intuit has lost me as a customer.

[hatailor]

xx

[dbargen]

Anyone know if you can print to PDF?

[groundhunter]

You can save your return and supporting forms to a PDF file.

[nicmart]

Compared to the vast rip-off of the taxes themselves, which most Americans pay like compliant sheep, this charge is peanuts. The total cost of TurboTax is about the same as the taxes on a few tanks of gasoline.

[DOGBERT6412]

Were do you live Alaska ???

Were I live the people here have to decide is it food or gas. Much less all the other crap we have to pay for to servive.
I bought a 16 year old kid a new $250.00 laptop for Xmas a Walmart black friday. It was a long night. We drew names for a family in need. Along with that we all chipped in $50 apiece for food clothes etc. Mother works cleaning our office every day. Very nice and excellent job. We didn't know what else to do but give them the money. The laptop is for college which he starts in March. Yes he is a Genius. Has his head in the right place and wants to be an IT lawyer as well as class action for the little people.

[loose_screw]

nicmart: If you don't mind paying then by all means open your wallet. This is a free country and people are free to pay, complain, or find cheaper alternatives. I've been using TaxCut for 8 years and have been a satisfied user. No Intuit products for me.

[ryan.steele]

Looks like I have a reason to switch to H&R Blocks Tax Cut. I have always used Turbo Tax. If they stick to this plan then I will not be buying their product anymore.

[DOGBERT6412]

Well they have lost me I'll pay my neighbor who is a tax accountant and take his family out to dinner A whole lot cheaper trust me.

They probably are having cash flow problems like others so they are trying to dig out of their hole this way.

Besides their code is probably as buggy as it has been in the past, as well as not coming to the plate if they screw up your return.

Sad sad sad. Adios Amigos

[gerrrg]

If you've got an issue with one software title, it's a fairly simple solution: SWITCH.

I switched to TaxCut a few years back after I realized there was a price premium on TurboTax, with fewer features.

[loose_screw]

Agreed. I tried both and find TaxCut easier to use and less bloated.

[bakedpatato]

Not again. First Spore, now this?

[protagonistic]

All I have to say on the subject is TaxAct...

I have been using that since I discovered it shortly after Intuit bought Parsons Technology, held it for about a year, killed off their tax program and checkbook program and then sold what was left to Broderbund. I did not like the if you can't compete with them then buy them out and kill them philosophy.

Needless to say I no longer use any Intuit programs.

[techpack]

I haven't used any Intuit programs for years for good reason; every year it became more and more costly to use it. We use a CPA firm and they charge us 120 for our taxes and all the printed copies we can "eat". Plus they will e-file for us without charge. I suggest checking with Tax companies for costs. Ask for an estimate first. If you think you will used more than three tax forms it's probably cheaper to use a service than anything Intuit offers.
Any software with strict licensing requirements or activation codes are products I avoid due to expanding costs of use. Abandon Intuit - they only rip off their customers, always have and always will.

[mikeburek]

The other printed tax returns they are talking about is the number of separate tax filings you can make. You can only file 1 online, but you can create up to 5 others and print them out and mail them in. TurboTax will let you print as many copied of the same return as you want. I bet your CPA firm won't let 1 paying customer bring in 5 family / friends to get their taxes done for free.

[i_am_still_wade]

Not surprised. Intuit is a shoddy company. If Quick Books had any legitimate competition, Intuit would be bankrupt in a year. Intuit releases a product full of bugs and is self-deprecating after 3 years. But unfortunately, there is no other viable alternative. Microsoft Money works well, but it lacks the features of Quick Books. Peachtree Accounting is just plain sorry. Nothing out there is good enough, much less excellent. Microsoft Money comes to closest, but only by default.

[Benlofton]

I think that is ok for them to charge $10.00 an extra claim. Its gonna cost you 10X that if you try and do it at any HR Block. Anyways complaining over ten bucks is sad.

[surferdan]

Benlotion,

I don't think you understand the problem. Please read the article again and find out how Intuit is ripping off their customer base. Does Microsoft word charge per letter or spread sheet? Why should I expect Intuit to charge me per tax return? They have zero more expenses because I file by us mail.

[c|net Reader]

@suferdan

Your analogy is flawed. When you buy Word, you buy a program to create many and varied documents. When you buy TurboTax, you buy tax expertise in a box. Intuit reasonably wants to make money of their costs to produce that expertise and make it accessible to everyday users. You can quibble over their wanting to charge $10 for additional returns, or their abrupt switch from including five in the original price to just one, but you can't assert that Intuit sold you a program to create as many returns as you like.

[pmfjoe]

@I_am_still_wade

Instead of MS Money check out MS Office Accounting 2009 go to office.microsoft.com and look for the accounting link.

[smiwee]

After being a regular customer of Turbo Tax for a good number of years, I tired of their jerking around their client base a couple of years ago and started using Tax Cut. I see no reason to ever return to them!

[MisterLeek]

Amen!