Version: 2008

Comments on: Amazon reviewers slam TurboTax fee changes

Revised fees from Intuit lead many reviewers to give the top-selling tax preparation program an overwhelmingly negative rating.

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by Launchpad_72 December 7, 2008 7:14 PM PST
I ditched TurboTax a few years ago after trying to file my 2006 return and encountering so many errors (I used the online "FreedomFile" feature) I gave up and went over to H&R Block's website. I had to pay $9.95 since they didn't support my state's FreedomFile program, but it was well worth it. Now that I've switched, I can't see what took me so long to try H&R Block. It was infinitely easier. I've also heard they'll be supporting FreedomFile for my state this year, so it's definitely a win-win for me.
-IAmTheDonut
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by themancomesaround December 7, 2008 7:31 PM PST
Acronis True Image
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by dudleydurite December 7, 2008 7:35 PM PST
I'm a longtime Turbo Tax Basic user - tried Tax Cut one year long ago and it woulnd't install for me. Best Buy and other stores used to use it as a leader item, priced at about $10-$15. This year the basic unit isn't even advertised, but it's in the stores at $29.95 - doubled from last year. Tax Cut's lowest priced unit is in at nine dollars and change - I'm going to have a look at it again - surely they've improved since I last tried 'em years ago. I'm joining the Turbo Tax rebellion!
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by HlLLARY CLITON December 7, 2008 7:44 PM PST
They are probably charging the big increase because they can, Intuit is the "Apple" of the tax preparation software industry
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by rakker91 December 7, 2008 8:27 PM PST
This is news?? How about a little investigative reporting! You're reporting peoples comments, without verification, as news. Come on news.com. Regardless of whether or not you like Intuit's pricing, this article is a joke. 90 people is hardly statistically significant. What' makes Mark Adler or p89jjy717 subject experts? Since we're lending so much weight to random comments by unknown people on the web, I hope you take this comment seriously!
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by Software Analyst December 7, 2008 8:48 PM PST
Thanks to this review, I'm thinking of going with QuickTax and some other vendors. Last alternative, do the tax preps manually.
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by gsmiller88 December 7, 2008 9:41 PM PST
EIther way (with the old price and the new one) the CPA I have do my taxes charges quite a bit less than the price of TurboTax.
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by nasserd December 7, 2008 10:45 PM PST
After Y2K, I relied on TurboTax for my tax needs... by 2003, I realized the competition was more reliable and had better "help" features to understanding the details. Since tax-year 2003 to this very day, I'm a proud Intuit TaxCut user.
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by c|net Reader January 2, 2009 4:24 PM PST
"Intuit TaxCut?" Which is it, Intuit TurboTax or H&R Block's TaxCut?
by DoSomethingToday December 8, 2008 12:15 AM PST
I have loyally used Turbotax since the 1980s. In the past few years they have been raising the prices by creating "versions" - so I paid more to use the Premier version. Now Intuit has stepped over the line.

For years Intuit has lobbied Congress to prevent the IRS from creating their own computer tax software to give to us taxpayers for free. With this many millions of federal taxpayers who need a new program EVERY YEAR, Turbotax should just cost $12 for any version.

It is our turn to lobby Congress - 1. Simplify the tax code, and 2. Just like the IRS is required to issue forms and instructions that explain the tax code, they should also be required to issue free tax programs that do exactly what Turbotax does - and allows us to file free electronically.

Why isn't this Democrat Congress working for US ? Lets kick some butt.
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by c|net Reader January 2, 2009 4:25 PM PST
Why would you trust the IRS to give you every deduction to which you're entitled? Competition is good.

I definitely agree with lobbying Congress to simplify the tax code!
by studiodave56 December 8, 2008 12:18 AM PST
What's next, Quicken charges extra for more than two credit cards?
Adobe charges per picture?
Here's wishing intuit a Happy Chapter 11.
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by solitare_pax December 8, 2008 3:36 AM PST
I can understand increasing the price of the software - but not the additional cost for each tax filing you may want to file for the different members of your family.

I suppose Microsoft will pick up on it, and insist each member of the family get charged for using Windows separately.
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by brian.bezanson December 8, 2008 6:53 AM PST
Here's another solution. Contain Intuit directly -- they have live Internet chat.

A helpful employee said he'd refund me the $9.99 for 2 returns I want to print for my kids (1040EZ) since they are in High School/College. They sent me a copy of the transcript and directions for getting the credits back.

They did explain the increase with adding eFile. While the program cost went up $15 I believe, eFile is $18. So you technically "save" $3.

If you want to eFile those additional returns -- versus print/mail, then you actually save $8/refund versus the old way or using TaxCut.

With all that said, if you eFile and just send do one set of taxes, TaxCut is quite a bit less expensive than TurboTax.

Bad communication on Intuit -- they should have learned from the last 'x' years of problems.
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by WantingToRetire December 8, 2008 7:21 AM PST
I've also been a long time user of Turbo Tax. While I understand Intuit's desire to stop people from running a tax preparation business using this lo-cost program. it's not usual that a software company stops a purchaser from allowing immediate family members to use the program. Of course, that's kind of hard for the software program to figure out, isn't it? I can see dropping the number of "free" returns from 5 to 2 or 3, maybe. Then, those who had a couple more returns to do - child, mother, etc. - could still feel they're getting their moneys' worth. However, since tax returns I had done by an accountant ranged anywhere from $250 to $500 (and they weren't very complicated), I still think TurboTax is a good buy.
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by RobertAPierce December 8, 2008 7:37 AM PST
I had not heard of this change and was planning to buy TurboTax this year like I had in previous years. Intuit apparently has contempt for it's cusomer base, I think this is a good reason to switch to Taxcut instead. No more TurboTax for me.
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by December 8, 2008 7:37 AM PST
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 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 the author points out, we?re no stranger to having customers voice their opinions about TurboTax. But I have to say, 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
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by ltullos December 8, 2008 10:35 AM PST
Bob,
I'm really sorry you and your associates at Intuit don't get it. Deceit no matter how you try to cast it as a feature is still deceit. I have been first a Turbotax and the Quicken customer since your first release, and I can honestly say that the enthusiasm I used to have for your products and your company faded many years ago. I thought you had learned from your 2003 mistake and when you reversed the copy protection change, I gave you another chance. As I wrote before you reversed field , "... since it is apparent that you no longer trust me, I no longer trust you! Very simply, I don't do business with people that I don't trust.? Well, once again Intuit is showing your true colors and priorities of revenue extraction over service. I'm done with you and will channel that lost enthusiasm to encourage my friends and associates to do the same.
by Sir Geek December 9, 2008 1:47 PM PST
Bob,

Question: For someone like myself, who will NEVER do the e-file (unless its required), how is this of a benefit for me ?
Answer: It ISN'T.

Question:How is it a benefit that I can no longer do taxes for my elderly in-laws ?
Answer: It ISN'T.

None of these changes are for my benefit, they are for the sole benefit of Intuit.
by degrees_of_truth December 10, 2008 12:17 PM PST
Wait, what? "If for ANY reason our customers aren't satisfied with having to pay the additional fee, we will refund the fee(s)." Then why charge the fee in the first place? Unless this policy is so hidden that people don't learn of it, isn't everyone going to request a refund?

One thing I would like to know is exactly how the additional printed file charge mechanism works. If it involves contacting an Intuit server, then the user is vulnerable to the various pitfalls of DRM/activation schemes, like the server being unavailable when you need to run the program, or the program doesn't work two years from now when you need to amend a return. And this would affect all users, not just extra return filers, if it requires validating that no extra returns were being printed.

If the mechansim does not involve server-side validation, what prevents someone from moving a return to a backup drive, or installing the program on a second machine, or simply reinstalling it on the same machine, to get around the multiple return restriction?

Why annoy your customers this way?
by December 8, 2008 8:40 AM PST
I've been using TurboTax for 10+ years and have been generally satisfied with the program. We do our main return - sometimes e-filing but not always because of some required physical paperwork - and two or three simple returns for our teenage children, whose returns I print out and mail. This price increase doubles our cost this year. It's not outrageous, but since viable cost-effective alternatives are available, I'll switch with no regrets. Convenience, not customer "care" or service, has kept me using Intuit software.
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by Heebee Jeebies December 8, 2008 8:46 AM PST
Lets fact it the state and federal governments want their money they should be providing tax preporation software for the average consumer to use. Intuit is a joke and so is their software. Having had the misfortune of using Quicken or trying to use Quicken any company that can't manage to get their online help written in plain English that a normal person that isn't a CPA can understand is a trash company and so far they have been unable to. Their greed will be their end. Once the cost of doing taxes yourself reaches the cost of paying someone to do it they have lost and they are getting ever closer. The same poor quality software, from the same poor quality company for more money isn't a smart move. I hope the go belly up.

Robert
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by c|net Reader January 2, 2009 4:32 PM PST
Unless the Government supplied software does nothing but automate the mathematics -- you enter the numbers and it copies them around, as needed, and computes other entries accordingly -- I don't want the Government software deciding which deductions I should take. Competition is good.
by aslasdav December 8, 2008 9:30 AM PST
After 15 years of using TurboTax and Quicken it is time to move to a different package.
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by Understarsidream December 8, 2008 9:43 AM PST
This makes me so very glad I switched to TaxCut years ago. Not only did I find it to be a better program but it's gotten me away from horribly greedy people who run Intuit. I really hope they go out of business.
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by ssalava December 8, 2008 10:13 AM PST
Most intellectual property-based products (software, music, movies, drugs, etc.) are priced based on the expected value delivered to the buyer, not the cost. It is irrelevant that the multi-return buyer doesn't perceive any additional cost incurred by Intuit (actually they do incur support and server/network infrastructure costs that scale with volume), the pricing is based on the value that is received and the price level will float with the demand and competitive alternatives. Cost-based pricing doesn't work for IP-based products since the cost of the first product would be millions of dollars, a business model that wouldn't get off the ground.

Market share tends to dictate who can charge price premiums. If $60 is too much, buy a competitor's product. If your friends and family don't want to pay the incremental filing fees, send them to a CPA.

If the pain of migrating your financial data from a non-Intuit product is worth the savings, go for it. Since most computer literate tax filers make more than $15 per hour, Intuit is banking on the fact that you'll pay the difference to stick with the same product.

It's all just simple pricing economics.
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