NOTE: After an onslaught of criticism from long-time users, TurboTax announced on Jan. 29 that customers who have already purchased its Deluxe desktop program will be able to upgrade to its Premium or Home and Business programs for free in early February. Deluxe customers who have already upgraded can go to www.TurboTax.com/25 to request a $25 refund. Next year, TurboTax will restore Schedules C, D and E to the desktop Deluxe program.
If you’ve been using TurboTax’s most popular desktop tax-preparation program, filing your taxes could cost you more this year. TurboTax’s Deluxe desktop version, which retails for $59.99, will no longer provide a question-and-answer interview for customers who need to report income from investments (except for interest, dividends and mutual fund capital gains distributions), self-employment and rental property.
Customers have two choices: Enter the information on the forms manually (which means you won’t be able to file electronically) or upgrade to a more expensive program. TurboTax Premier ($89.99) covers investment income reported on Schedule D and rental income reported on Schedule E; Home and Business ($99.99) also includes Schedule C, used for reporting self-employment income. For both those products as well as Deluxe, you pay an additional $19.99 to e-file your state return.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The online versions of the products are slightly less expensive: $54.99 for Premier plus $36.99 for a state return; $79.99 for Home and Business plus $36.99 for a state return. However, customers who use the online products can prepare and e-file only one tax return, versus up to five for the desktop products. And some customers prefer the desktop version because they believe it’s more secure.
The change in TurboTax Deluxe has ignited a firestorm of criticism from customers who say they didn’t discover that the forms were missing until after they purchased the software. Longtime user Edgar Dworsky, founder of ConsumerWorld.org, says he was shocked to learn he couldn’t use it to report his self-employment income this year. The updated checklist on the back of the box was easy to overlook, especially for customers who have purchased the product for years, he says. “That’s why people are so irate.”
TurboTax vice-president Bob Meighan says the change will bring its desktop programs in line with its online products. TurboTax started requiring online customers to use Premier or Home and Business for Schedules C, D and E last year. If you’ve already purchased the desktop version of TurboTax Deluxe, here are your options:
Make sure you really need to upgrade. You can still use Deluxe to report income from interest, dividends and mutual fund capital gains distributions. You can also use it to report miscellaneous income from a 1099-MISC.
Complain. Customers who are unhappy with their purchase can contact TurboTax (go to www.turbotax.com for contact information). While the company is dealing with complaints on a case-by-case basis, it has provided free upgrades to some customers.
Switch. If you’ve already purchased TurboTax Deluxe, H&R Block is offering a free download of H&R Block Deluxe + State, which retails for $44.95, plus $19.95 to e-file a state return. H&R Block Deluxe supports Schedules C and D (users who want to use the Q&A to report rental income need to upgrade to the $64.95 premium product). To receive a free download, e-mail your name, address and phone number, the type of operating system you use (Windows or Mac) and a photocopy of your receipt or download code to SwitchToBlock@hrblock.com. You can import the previous year’s TurboTax return to the H&R Block program.
Block also allows users to electronically import W-2s and 1099s from the majority of vendors that provide these documents. However, its list isn’t as comprehensive as TurboTax’s, which imports information from more than 1 million participating employers and financial institutions.
-
How to Regulate Fintech Without Stifling GrowthContaining fintech is a matter of finding the sweet spot between security and growth.
-
Collective Investment Trusts: Should Your 401(k) Hold Them?Your employer-sponsored retirement plan may hold a unique type of investment called a collective investment trust, or CIT. They come with benefits and risks that warrant a closer look.
-
Voters Approve New Veteran Property Tax ReliefTax Relief Thanks to the election, some Veterans will soon see expanded property tax exemptions.
-
Nevada Approves Diaper Tax Relief Amid Childcare CrisisTax Relief Nevada voters have expanded sales tax relief to diapers. But are prices still too high?
-
Earned Income Tax Credit (EITC) 2024: How Much Will You Get?Tax Credits The refundable amount for workers with or without children is slightly higher this year. Here’s what you need to know.
-
IRS Expands Tax Breaks for Breast Cancer Screenings, ContraceptivesHealthcare Now you can get a tax deduction or reimbursement for certain medical expenses, like over-the-counter birth control and condoms.
-
Adoption Tax Credit 2024: What You Need to KnowTax Credits The federal adoption tax credit is slightly higher for 2024. Here’s what you can claim under the tax break designed to help grow your family.
-
New 2025 Child Tax Credit Announced: How Much Is It?Family Tax Credits Explore the new IRS-adjusted amounts for popular family tax credits.
-
Three Ways to Avoid the Mansion TaxProperty Tax Some homebuyers have found creative loopholes around the mansion tax, but are they legal?
-
Three Creative Ways to Lower Your Retirement TaxesTax Tips You can apply key minimalism concepts for potential tax savings. Here’s how.
