If you watched the Super Bowl, you saw TurboTax’s 60-second ad,
depicting the Boston Tea Party,
only in this version, the colonists
call off the protest when they learn they can file their taxes for free.
It’s all part of TurboTax’s big marketing push depicting its tax filing
software as a better deal than its competitors.
However… there’s a big “but” in this case. TurboTax changed its main
“Deluxe” product so that it no longer includes processing of schedules
C, D and E. So longtime customers who were accustomed to that being part
of the package were miffed.
“Without clear advance disclosure that its flagship product had changed
and could no longer help users easily report all income from
investments, self-employment, and rental property...the company had
sought $30 to $40 in upgrade fees...in order to restore its original
functionality,” said Edgar Dworsky, founder of ConsumerWorld.org. Dworsky said in his article that TurboTax did not disclose the changes until customers were part-way through the program.
Faced with consumer complaints, TurboTax initially offered a $25 rebate
for returning customers to upgrade their software. “The reality is we
messed up. We made a mistake,” Sasan Goodarzi, general manager of
Intuit’s TurboTax division, told Forbes. “We caused a lot of anger and frustration for our customers.”
But even if you plan use TurboTax and the $25 rebate, you will have to wait for your state refund. This week, TurboTax said it has temporarily stopped processing state tax returns following growing reports of suspicious activity
Another problem is, in some cases, the $25 was not enough to cover the
cost of upgrading and customers were required to enter sensitive
personal info before they could tap into the offer.
Apparently that didn’t cut it with consumers, so now Intuit, parent
company of TurboTax, has re-re-reversed itself and agreed to offer
customers free upgrades this year and to reverse the changes so that
next year’s version will include the missing schedules. Here’s the CEO’s apology video.
During TurboTax’s pricing snafu, H&R Block
offered its “Deluxe + State” desktop software free to taxpayers who
already bought TurboTax’s basic or deluxe products. Filers had to email
SwitchToBlock@hrblock.com and include their name, address, phone number,
whether they use Windows or Mac, and proof of purchase.
Bottom line: customers who already paid to upgrade TurboTax can still tap into the $25 rebate offer. And those who have not yet filed their taxes will get the upgrade within the program, when they use it.
Opinions expressed in this column are solely those of the author.
Elisabeth Leamy is a 20-year consumer advocate for programs such as "Good Morning America" and "The Dr. Oz Show." She is the author of Save BIG and The Savvy Consumer. Elisabeth is also a professional speaker,
delivering talks nationwide on saving money, media relations, and
career success. Elisabeth receives her best story tips from readers, so
please connect with her via Facebook, Twitter or her website, to share your ideas.
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