What is the downside of TurboTax? (2024)

What is the downside of TurboTax?

Another drawback previously mentioned is the price. TurboTax is the most expensive online tax filing software , especially for freelancers and rental property owners. But it can also become pricey for individuals who need to file multiple state tax returns. (TurboTax charges $64 to file state taxes, per return.)

What is the problem with TurboTax?

The FTC said that TurboTax's “file FREE” claims misled people because most people didn't qualify for “$0 to file.”

What is better than TurboTax?

H&R Block and TurboTax are the two most comprehensive online services available and likewise, they are also some of the most expensive. However, while H&R Block was once cheaper than TurboTax, the companies are now nearly perfectly aligned when it comes to cost, with the self-employed being the exception.

Is it better to use a tax preparer or TurboTax?

It seems more convenient and cheaper to do it yourself. Even though TurboTax and other programs are easy to use, they have their own limitations. Spending the extra cash to hire a professional can actually save you money in the long run if your financial situation becomes complex.

Should I trust TurboTax?

For those who want to get their taxes done quickly with as little headache as possible, TurboTax is the leading contender. While it's not the cheapest option available, the breadth of product options and smooth process make it worth the cost.

What is TurboTax being investigated for?

The FTC first sued Intuit in March 2022 over the ads pitching free TurboTax products. The commission said about two-thirds of tax filers in 2020 would have been ineligible for the company's free offerings, such as freelance workers who received 1099 forms and people who earned farm income.

Is it worth doing your taxes on TurboTax?

Our Verdict

TurboTax might be the right tax filing software for you—if you don't mind navigating lots of invitations to upgrade or add on extra features. Our TurboTax review looks at where TurboTax excels and how much it costs so you can decide whether you might want to file with it in 2024.

Does TurboTax actually do your taxes for you?

With Live Full Service, you're matched to a dedicated tax expert who will do your taxes, start to finish, and review them with you before filing.

Does TurboTax give you the best refund?

No tax software provider can guarantee you the best refund. Your tax refund is based on your income, deductions, credits, and the amount of tax you paid in for the year. If you input your return information accurately, you should receive the same refund no matter which software you use.

Do professionals use TurboTax?

TurboTax is only licensed for personal use, and it is not compliant with IRS regulations for paid preparers.

Do tax professionals use TurboTax?

TurboTax is for personal, not professional use. If you are filing for clients, you cannot use TurboTax. You must use one of Intuit's products for tax professionals. See http://accountants.intuit.com/.

Who is the best person to file taxes with?

Certified public accountants: Use the CPA Verify tool or check with your state's board of accountancy. Tax attorney: Contact your state's bar association.

Why use CPA instead of TurboTax?

CPAs on the other hand are usually more business focused. Many have experience in bookkeeping and expertise in tax matters beyond your personal return. If you're a small business owner or need some long term tax planning help, you'll probably want to speak with a CPA.

Is TurboTax 100% accurate?

For the 100% Accurate Calculations Guarantee: You double-checked your entries and you believe you entered them correctly. If you used a CD/download version of TurboTax, you registered your software and your program is up-to-date.

Why are my tax returns so low 2024?

You may be in line for a smaller tax refund this year if your income rose in 2023. Earning a lot of interest in a bank account could also lead to a smaller refund. A smaller refund isn't necessarily terrible, since it means you got paid sooner rather than loaning the IRS money for no good reason.

What is the processing fee for TurboTax?

There's a $40 processing fee charged by the bank that handles the transaction when the IRS processes your return. If your return is rejected, you might have to enter your bank account information again, but you won't be charged a second time.

Why are people complaining about TurboTax?

The Federal Trade Commission has issued an Opinion and Final Order that Intuit Inc., the maker of the popular TurboTax tax filing software, engaged in deceptive advertising in violation of the FTC Act and deceived consumers when it ran ads for “free” tax products and services for which many consumers were ineligible.

Does TurboTax cover you if you get audited?

Audit Support Guarantee – Individual Returns: If you receive an audit letter from the IRS or State Department of Revenue based on your 2023 TurboTax individual tax return, we will provide one-on-one question-and-answer support with a tax professional, if requested through our Audit Support Center, for audited ...

Why is TurboTax not free 2024?

On Monday, the Federal Trade Commission said that Intuit, the company that makes the tax-prep software TurboTax, can no longer market its services as "free," since that's not exactly accurate. Most customers find out they aren't eligible to use the free product Intuit offers and must upgrade to a paid version.

Does TurboTax lower your refund?

When you pay your TurboTax fees with your federal refund, the TurboTax fee plus a separate Refund Processing Service (RPS) fee are deducted from your total refund amount. So your IRS-issued tax refund might be less than the amount shown in TurboTax.

How much does TurboTax take out of your refund?

How do I remove Pay With My Refund fees in TurboTax Online and change my payment method? If you select Pay with My Refund to pay your TurboTax fees, there's an additional $40 processing fee charged by the third-party bank that handles the transaction.

Why is TurboTax charging me for Deluxe?

If we detect that your tax situation requires expanded coverage, like deductions for owning a home, unemployment income, or self-employment income, we'll prompt you to upgrade to a version that supports the forms you need so that we can maximize your tax deductions and ensure you file an accurate return.

How does TurboTax make money if it's free?

How does TurboTax make money? We want our customers to love our products and services. Because we have customers who pay for our premium products and services, we can offer free tax filing. We offer additional paid benefits that go beyond filing your Form 1040 return with limited credits, but they're optional.

What tax service gets you the most back?

The eFile.com Tax App is tested by the IRS each year, thus we guarantee you 100% tax calculation accuracy and the biggest tax refund allowed by law on any tax return prepared and filed on eFile.com and accepted by the IRS. Period.

Is it cheaper to do your taxes yourself?

Not only is the process usually more efficient than commuting to your tax professional's office, it's often less expensive as well. Depending on the details of your return, you may even be able to file it for free.