Did Turbotax Pull One Over?

[Leesbro63]

Last month I bought Turbotax deluxe like I do every December. As I start to populate the forms now, I went for the free one-state download. Nope! $40! Was I a poor shopper or did Turbotax pull one over on me?

[ShadowRegent]

There are two versions of Deluxe which is a bit confusing. One includes a state and one is federal only. Double check which you bought-- are you sure it was the one that included one state?

[Leesbro63]

There are two versions of Deluxe which is a bit confusing. One includes a state and one is federal only. Double check which you bought-- are you sure it was the one that included one state?

That explains it. I’m sure I didn’t know that and bought the wrong one. I’ve been using TT for decades and have never not gotten one state by default. I assume the Deluxe with one state is more, so my extra $40 might actually be less. I’ll shop better next year.

[dukeblue219]

There are two versions of Deluxe which is a bit confusing. One includes a state and one is federal only. Double check which you bought-- are you sure it was the one that included one state?

That explains it. I’m sure I didn’t know that and bought the wrong one. I’ve been using TT for decades and have never not gotten one state by default. I assume the Deluxe with one state is more, so my extra $40 might actually be less. I’ll shop better next year.

$40 is a real stinker if it doesn't include state e-file (does it?). The Amazon and Costco deals for Deluxe + 1 State are usually around $40 in December.

[Leesbro63]

There are two versions of Deluxe which is a bit confusing. One includes a state and one is federal only. Double check which you bought-- are you sure it was the one that included one state?

That explains it. I’m sure I didn’t know that and bought the wrong one. I’ve been using TT for decades and have never not gotten one state by default. I assume the Deluxe with one state is more, so my extra $40 might actually be less. I’ll shop better next year.

$40 is a real stinker if it doesn't include state e-file (does it?). The Amazon and Costco deals for Deluxe + 1 State are usually around $40 in December.

Yup. Ya live 'n learn.

[KSOC]

I have a question for Turbo-Tax users. What makes it worth $40? Serious question because I'm currently using FreeTaxUSA, previously used TaxAct, and previously another free or small e-file charge program. What am I missing? Is it just the continuity/comfort of using the same program for decades? Our taxes have never been too complex. Is that it?

[anon_investor]

I have a question for Turbo-Tax users. What makes it worth $40? Serious question because I'm currently using FreeTaxUSA, previously used TaxAct, and previously another free or small e-file charge program. What am I missing? Is it just the continuity/comfort of using the same program for decades? Our taxes have never been too complex. Is that it?

Probably continuity/comfort, never had an issue using TT for many years. When purchased during the annual Amazon sale, deluxe fed+state only costs ~$35.

[Gryphon]

I have a question for Turbo-Tax users. What makes it worth $40? Serious question because I'm currently using FreeTaxUSA, previously used TaxAct, and previously another free or small e-file charge program. What am I missing? Is it just the continuity/comfort of using the same program for decades? Our taxes have never been too complex. Is that it?

First, I'm dubious of "free" - if you're not the customer you're often the product. I know that isn't *always* true but it tends to be the case more often than not, and it isn't always obvious how you're being turned into the product. I'd rather stick with a business model I understand.

Second, I tried a couple of the competing programs a couple decades ago (Tax Act & Tax Cut) and felt like they were less polished. They got the job done but TurboTax just seemed easier to use. They might be better now, I just decided to stick with TurboTax until Intuit gives me a good reason not to.

Third, I rely on tax software to know how to correctly handle whatever my situation is each year. My taxes aren't terribly complex either, but when I was doing a 72t plan TurboTax knew to include a 5329 in my tax return every year. Or an 8889 in the years I was making HSA contributions. And the interview process can remind me of things that I might otherwise have forgotten to include. I just feel like the end result is better than it would be if I was doing it all on my own.

[pshonore]

A lot of states have the ability to do your state taxes online at the state website. As an example, CT starts with Federal AGI, there are a few possible additions (foreign state muni bond interest, etc) some subtractions (529 plan, SS tax adjustment, property tax credit, etc) and no efiling fee. YMMV.

[iljets10]

I have a question for Turbo-Tax users. What makes it worth $40? Serious question because I'm currently using FreeTaxUSA, previously used TaxAct, and previously another free or small e-file charge program. What am I missing? Is it just the continuity/comfort of using the same program for decades? Our taxes have never been too complex. Is that it?

I used TaxAct once about 5 years ago. It put all of my earned income in both states I was filling, even though I said I was a resident of only 1 state and my W-2 had my employers’ address. TaxAct was convinced that nothing was wrong and I had to manually fix the error. After that I vowed to never again use such faulty software. I’ve never had such a worry with TurboTax.

[Kenkat]

A lot of states have the ability to do your state taxes online at the state website. As an example, CT starts with Federal AGI, there are a few possible additions (foreign state muni bond interest, etc) some subtractions (529 plan, SS tax adjustment, property tax credit, etc) and no efiling fee. YMMV.

Same for Ohio.

[Mike Scott]

Familiarity and I can use all five federal filings for one cost.

[TravelGeek]

Yup. Ya live 'n learn.

If you have a Chase credit card, check if you have a Chase Offer for TurboTax. It might give you $10 off for the in-app purchase.

[telemark]

I haven't used Turbotax in years, but I believe it can pull dividend and capital gains distributions directly from Vanguard, whereas with FreeTaxUSA I have to enter all that manually.

[stan1]

Last month I bought Turbotax deluxe like I do every December. As I start to populate the forms now, I went for the free one-state download. Nope! $40! Was I a poor shopper or did Turbotax pull one over on me?

Some people live in states with no state income tax, so TT offers a version for them that does not have state tax forms. Sounds like you bought that version rather than the one that you needed because you live in a state that requires filing income tax.

[rivercrosser]

Yup. Ya live 'n learn.

If you have a Chase credit card, check if you have a Chase Offer for TurboTax. It might give you $10 off for the in-app purchase.

I noticed that on my Chase offers. I'm hoping when I file my sons and our state returns it will give me a discount on the e-file fee. I already have the software bought from Amazon back in December.

[aristotelian]

I have a question for Turbo-Tax users. What makes it worth $40? Serious question because I'm currently using FreeTaxUSA, previously used TaxAct, and previously another free or small e-file charge program. What am I missing? Is it just the continuity/comfort of using the same program for decades? Our taxes have never been too complex. Is that it?

TT Deluxe Download is worth it to me for:
-Auto import of investment income from most brokers;
-Ability to do multiple tax returns without having to set up separate accounts;
-Preference for not having to store personal data in the cloud;
-FTUSA charges for state so it's still not free.

That said if I were doing only my own return I would do FTUSA and use my state website to free e-file.

[Leesbro63]

I have a question for Turbo-Tax users. What makes it worth $40? Serious question because I'm currently using FreeTaxUSA, previously used TaxAct, and previously another free or small e-file charge program. What am I missing? Is it just the continuity/comfort of using the same program for decades? Our taxes have never been too complex. Is that it?

Probably continuity/comfort, never had an issue using TT for many years. When purchased during the annual Amazon sale, deluxe fed+state only costs ~$35.

+1 for continuity, year to year import and no new learning curve.

[Leesbro63]

Last month I bought Turbotax deluxe like I do every December. As I start to populate the forms now, I went for the free one-state download. Nope! $40! Was I a poor shopper or did Turbotax pull one over on me?

Some people live in states with no state income tax, so TT offers a version for them that does not have state tax forms. Sounds like you bought that version rather than the one that you needed because you live in a state that requires filing income tax.

Yup! That’s what I did! They should be more upfront about “No State Version Included”, tho

[KSOC]

I have a question for Turbo-Tax users. What makes it worth $40? Serious question because I'm currently using FreeTaxUSA, previously used TaxAct, and previously another free or small e-file charge program. What am I missing? Is it just the continuity/comfort of using the same program for decades? Our taxes have never been too complex. Is that it?

Thanks all for the feedback. Good points were made and might give it another look.

[nalor511]

You can get HRB deluxe+state for less than that $40

[neurosphere]

I have a question for Turbo-Tax users. What makes it worth $40? Serious question because I'm currently using FreeTaxUSA, previously used TaxAct, and previously another free or small e-file charge program. What am I missing? Is it just the continuity/comfort of using the same program for decades? Our taxes have never been too complex. Is that it?

I used TaxAct once about 5 years ago. It put all of my earned income in both states I was filling, even though I said I was a resident of only 1 state and my W-2 had my employers’ address. TaxAct was convinced that nothing was wrong and I had to manually fix the error. After that I vowed to never again use such faulty software. I’ve never had such a worry with TurboTax.

This is a tangent from the main question in this thread, but the employer address is irrelevant/ignored by tax software as it has no bearing on your taxes. If you correctly indicated you were a resident of state 1, and non-resident of state 2, then the next step is to tell taxact which amount of the total income is attributable to the non-resident state, if any. I would never rely on software to get this "right" without your input or verification. In fact, it's often the case that w2s are incorrect (lines 15 through 17) if you have not notified your employer of your correct tax situation/residency/etc.

[Good Listener]

Here's how I figure it. If TurboTax didn't exist were no online service existed, how much would be the amount you would pay to get access to it. For me if you can get it all for $100 or $200 that is a steal. Take this from somebody who is laid up now with a bad back and praying to God he gets better. I have all five tax forms for next year and will pay whatever turbo tax wants.

[talzara]

That explains it. I’m sure I didn’t know that and bought the wrong one. I’ve been using TT for decades and have never not gotten one state by default. I assume the Deluxe with one state is more, so my extra $40 might actually be less. I’ll shop better next year.

You paid more. TurboTax Deluxe Federal & State only costs $8 more than TurboTax Deluxe Federal.

[Vulcan]

I have a question for Turbo-Tax users. What makes it worth $40? Serious question because I'm currently using FreeTaxUSA, previously used TaxAct, and previously another free or small e-file charge program. What am I missing?

An option to receive refund as I Bonds.

[nalor511]

I have a question for Turbo-Tax users. What makes it worth $40? Serious question because I'm currently using FreeTaxUSA, previously used TaxAct, and previously another free or small e-file charge program. What am I missing?

An option to receive refund as I Bonds.

OLT does that for less than TT and also less than FTUSA

[Leesbro63]

That explains it. I’m sure I didn’t know that and bought the wrong one. I’ve been using TT for decades and have never not gotten one state by default. I assume the Deluxe with one state is more, so my extra $40 might actually be less. I’ll shop better next year.

You paid more. TurboTax Deluxe Federal & State only costs $8 more than TurboTax Deluxe Federal.

Not very Bogleheadish of me

[SlowMovingInvestor]

I have a question for Turbo-Tax users. What makes it worth $40? Serious question because I'm currently using FreeTaxUSA, previously used TaxAct, and previously another free or small e-file charge program. What am I missing? Is it just the continuity/comfort of using the same program for decades? Our taxes have never been too complex. Is that it?

I've been getting TT free from Fidelity for years, but I would definitely pay for it if needed. I'm very frugal, but the cost ($35 or so) strikes me as minimal and a bargain compared to getting a CPA. It would be false economy to go to another provider.

I remember trying TaxCut once around 15+ years back. It did not handle company stock option sales very well, so I switched back to TT (TaxCut refunded their cost). Since then, I haven't even considered competitors. Some things I like about TT

-- Download of 1099s from all major brokerages. Also W-2s from major payroll providers.
-- Importing previous year's tax returns (which help to fill in lots of stuff that I might have forgotten such as previous year's refund applied to this year's taxes)
-- Ability to do multi-state returns, and even (with some tweaks) multi state with different filing status
-- Large customer base means that bugs are more likely to be detected, even in state forms (which are used less in general)
-- Forms mode allows me to find out exactly how a number on a tax form is derived. Also, I can tweak numbers if needed.
-- Desktop software. I don't want to use online tax sites.

I know some competitors have some of these features too, but I think TT is generally the leader.

[SmileyFace]

I have a question for Turbo-Tax users. What makes it worth $40? Serious question because I'm currently using FreeTaxUSA, previously used TaxAct, and previously another free or small e-file charge program. What am I missing? Is it just the continuity/comfort of using the same program for decades? Our taxes have never been too complex. Is that it?

Would these guide me on how to properly handle Rollover IRAs, RSUs, and ESPP? I am guessing not because folks that report here having to correct their taxes sometimes have mentioned using Taxact or FreeTaxUSA. TurboTax is a great price for what it does. It also allows up to 5 returns (I do my own, my kids, and my Dads with it).
If your taxes are simple perhaps anything would do. I figure the few dollars I pay helps me avoid mistakes. And although people like to tell me I am wasting money because Deluxe "has all the forms" I pay the few dollars extra for Premier so I can get the guidance I need.
I always buy the download (or have for the last several years - before that I was buying the CD).

[Leesbro63]

I have a question for Turbo-Tax users. What makes it worth $40? Serious question because I'm currently using FreeTaxUSA, previously used TaxAct, and previously another free or small e-file charge program. What am I missing? Is it just the continuity/comfort of using the same program for decades? Our taxes have never been too complex. Is that it?

Would these guide me on how to properly handle Rollover IRAs, RSUs, and ESPP? I am guessing not because folks that report here having to correct their taxes sometimes have mentioned using Taxact or FreeTaxUSA. TurboTax is a great price for what it does. It also allows up to 5 returns (I do my own, my kids, and my Dads with it).
If your taxes are simple perhaps anything would do. I figure the few dollars I pay helps me avoid mistakes. And although people like to tell me I am wasting money because Deluxe "has all the forms" I pay the few dollars extra for Premier so I can get the guidance I need.
I always buy the download (or have for the last several years - before that I was buying the CD).

Actually, it’s 5 EFiles. If you have more than five, you might be able to “triage” and mail in some returns. Those that are simple and/or are not generating a refund are good candidates for mail-in to leave the 5 EFiles for those generating refunds.

[TheRealJohnDoe]

$40 is a real stinker if it doesn't include state e-file (does it?). The Amazon and Costco deals for Deluxe + 1 State are usually around $40 in December.

No edition of TurboTax includes state e-file.

E-filing state is extra for any state except New York.

[dukeblue219]

$40 is a real stinker if it doesn't include state e-file (does it?). The Amazon and Costco deals for Deluxe + 1 State are usually around $40 in December.

No edition of TurboTax includes state e-file.

E-filing state is extra for any state except New York.

The $40 in question here is the $40 add-on for a single state to the "federal only" package. That struck me as high and I was curious if that was the sum of the state download + filing fee for the state in question (and no, it wasn't).

[Caliscotsman]

On the box Turbo Tax home and business claims to take care of all your Home and small business needs.
This is incorrect as TT does not efile form 568 for you. You have to print and snail it.

[nalor511]

$40 is a real stinker if it doesn't include state e-file (does it?). The Amazon and Costco deals for Deluxe + 1 State are usually around $40 in December.

No edition of TurboTax includes state e-file.

E-filing state is extra for any state except New York.

I think the online version does, or at least that's what I'd been told, but yes the download versions always charge for state efile

[zincTwo]

No edition of TurboTax includes state e-file.

I think the online version does, or at least that's what I'd been told, but yes the download versions always charge for state efile

Correct. Online versions charge for the state returns, but eFiles are included.

[donaldfair71]

I have a question for Turbo-Tax users. What makes it worth $40? Serious question because I'm currently using FreeTaxUSA, previously used TaxAct, and previously another free or small e-file charge program. What am I missing? Is it just the continuity/comfort of using the same program for decades? Our taxes have never been too complex. Is that it?

So for me, I used free tax USA for years and loved it. However, in 2020 there was a specific form I needed that free tax doesn’t support. So I found HR Block at Amazon for I believe $5 more than free tax and the Deluxe version supports the form. Even though I don’t need that form every year, I just stayed with HR Block out of inertia.

[KSOC]

I have a question for Turbo-Tax users. What makes it worth $40? Serious question because I'm currently using FreeTaxUSA, previously used TaxAct, and previously another free or small e-file charge program. What am I missing? Is it just the continuity/comfort of using the same program for decades? Our taxes have never been too complex. Is that it?

Thanks all for the feedback. Good points were made and might give it another look.

I'm running Turbotax online to check my FreeTaxUSA return. I was using TaxAct to check and twice there were unresolvable differences. I need to file state return here in PA, and found the the PA e-file kind of confusing, so last year I spent $14 to FreeTaxUSA to make sure it was correct.

[SlowMovingInvestor]

I have a question for Turbo-Tax users. What makes it worth $40? Serious question because I'm currently using FreeTaxUSA, previously used TaxAct, and previously another free or small e-file charge program. What am I missing? Is it just the continuity/comfort of using the same program for decades? Our taxes have never been too complex. Is that it?

Thanks all for the feedback. Good points were made and might give it another look.

I'm running Turbotax online to check my FreeTaxUSA return. I was using TaxAct to check and twice there were unresolvable differences. I need to file state return here in PA, and found the the PA e-file kind of confusing, so last year I spent $14 to FreeTaxUSA to make sure it was correct.

You're saying the Federal returns conflict or that the state return conflicts with PA revenue online filing?

I don't know if TaxAct has forms mode (TT does), but I would suggest dropping into that to see where the differences originate.

[KSOC]

I have a question for Turbo-Tax users. What makes it worth $40? Serious question because I'm currently using FreeTaxUSA, previously used TaxAct, and previously another free or small e-file charge program. What am I missing? Is it just the continuity/comfort of using the same program for decades? Our taxes have never been too complex. Is that it?

Thanks all for the feedback. Good points were made and might give it another look.

I'm running Turbotax online to check my FreeTaxUSA return. I was using TaxAct to check and twice there were unresolvable differences. I need to file state return here in PA, and found the the PA e-file kind of confusing, so last year I spent $14 to FreeTaxUSA to make sure it was correct.

You're saying the Federal returns conflict or that the state return conflicts with PA revenue online filing?

I don't know if TaxAct has forms mode (TT does), but I would suggest dropping into that to see where the differences originate.

TaxAct had 2 issues in 2 different tax years that was different from FreeTaxUSA. One was due to rounding to whole dollar on 1095-A, the other was a 1099-R whole life insurance policy surrender. The former was minor, the latter was substantial.

[iljets10]

I have a question for Turbo-Tax users. What makes it worth $40? Serious question because I'm currently using FreeTaxUSA, previously used TaxAct, and previously another free or small e-file charge program. What am I missing? Is it just the continuity/comfort of using the same program for decades? Our taxes have never been too complex. Is that it?

I used TaxAct once about 5 years ago. It put all of my earned income in both states I was filling, even though I said I was a resident of only 1 state and my W-2 had my employers’ address. TaxAct was convinced that nothing was wrong and I had to manually fix the error. After that I vowed to never again use such faulty software. I’ve never had such a worry with TurboTax.

This is a tangent from the main question in this thread, but the employer address is irrelevant/ignored by tax software as it has no bearing on your taxes. If you correctly indicated you were a resident of state 1, and non-resident of state 2, then the next step is to tell taxact which amount of the total income is attributable to the non-resident state, if any. I would never rely on software to get this "right" without your input or verification. In fact, it's often the case that w2s are incorrect (lines 15 through 17) if you have not notified your employer of your correct tax situation/residency/etc.

I did all of that and the software still insisted - I had to go into the forms and manually correct it. If the software can’t fill the forms out correctly based on the questions asked, then why am I paying for the software instead of doing it myself for free?

[Leesbro63]

I have a question for Turbo-Tax users. What makes it worth $40? Serious question because I'm currently using FreeTaxUSA, previously used TaxAct, and previously another free or small e-file charge program. What am I missing? Is it just the continuity/comfort of using the same program for decades? Our taxes have never been too complex. Is that it?

I used TaxAct once about 5 years ago. It put all of my earned income in both states I was filling, even though I said I was a resident of only 1 state and my W-2 had my employers’ address. TaxAct was convinced that nothing was wrong and I had to manually fix the error. After that I vowed to never again use such faulty software. I’ve never had such a worry with TurboTax.

This is a tangent from the main question in this thread, but the employer address is irrelevant/ignored by tax software as it has no bearing on your taxes. If you correctly indicated you were a resident of state 1, and non-resident of state 2, then the next step is to tell taxact which amount of the total income is attributable to the non-resident state, if any. I would never rely on software to get this "right" without your input or verification. In fact, it's often the case that w2s are incorrect (lines 15 through 17) if you have not notified your employer of your correct tax situation/residency/etc.

I did all of that and the software still insisted - I had to go into the forms and manually correct it. If the software can’t fill the forms out correctly based on the questions asked, then why am I paying for the software instead of doing it myself for free?

Because the software basically works well most of the time and it's still a huge bit easier than doing it by hand. Don't throw out the baby with the bathwater.

[investor4life]

Just picked up TTax Premier at Costco ($65), Federal + State. Includes an additional $10 discount applicable towards State E-File (among other things).