(BOSTON – January 22, 2015) – Following a public outcry from regular TurboTax Deluxe users who learned that the popular tax preparation software’s maker had stripped the program of key functionality this year, Intuit today apologized and somewhat reversed course by offering a $25 rebate to purchasers to partially cover the cost of having to upgrade to a more expensive version.
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 (Schedules C, D, and E), the company had sought $30 to $40 in upgrade fees disclosed partway into the program in order to restore its original functionality.
“Intuit offered a full apology but only a partial refund. They should be providing free automatic upgrades this year, and not requiring users to remember to send in for a rebate possibly months from now after they file their taxes,” commented Consumer World founder Edgar Dworsky. “The rebate doesn’t even cover the full cost of the upgrade in many cases.”
As of today, customers have posted over 1500 one-star reviews of TurboTax Deluxe on Amazon. And competitors like H&R Block have already offered disgruntled TurboTax customers their tax software free.
Dworsky launched a media blitz on January 6 to warn the public about the crippled TurboTax software, and to pressure the company to give all affected customers automatic free upgrades to restore the product’s full functionality. Until now, Intuit was only informally offering free or discounted upgrades to buyers who called to complain.
To save the company money, Intuit has narrowly defined who can get the $25 rebate. To qualify, customers have to had filed their 2013 income taxes using TurboTax Deluxe, and filed their 2014 return using either TurboTax Premier or Home & Business. And by using a rebate that can’t be submitted until one’s taxes are filed, the company will benefit from those who forget or can’t be bothered dealing with rebates.
UPDATE: Intuit has clarified whether you have to e-file or not to qualify for the rebate. If you e-file both the 2013 and 2014 return, their website can automatically validate your rebate request. If you paper filed, they will have to process the request manually by having you call their 800 number.
Intuit is not new to controversy or nickel-and-diming tactics. In 2008, it added a $9.95 fee to print or e-file a second return from TurboTax, but quickly rescinded the charge following a storm of criticism. And for years, it has arbitrarily “sunset” (deactivated) the online downloading and electronic bill payment functions of its popular Quicken checkbook software thus requiring consumers to buy a new version of the program every three years.
hahahah Busted……
If you are willing to forgo the download information from the financial institution(s) Quicken still functions quite well as a check writing/checkbook program.
I just wish I could figure out how to turn of the nag screens to get me to buy my 2009 version of it.
Good job, Edgar! I read your site every week, and read your piece, and bought the more expensive Premier version. You saved me a LOT of hassle!
Edgar replies: Sko… just don’t forget to send in for the rebate if you used TT Deluxe last year.
So, the Turbotax rebate doesn’t apply to people who filed with “Basic” , in 2013; even though these customers were screwed even worse than the ones who used “Deluxe”. The reason is that most of the Turbotax customers, who were treated poorly, had bought “Deluxe”. Another proof that Intuit really ??? cares about their customers. I think I’ll accept the transition pain and switch to H&R Block, next year!
Since I don’t file electronically, the rebate won’t apply to me. I wonder how many others are eliminated from the potential rebate because they prefer to print and mail.
Edgar replies: CORRECTION: Apparently you can file by mail OR e-file to qualify now.
Tell Turbo Tax to get lost with that bait and switch.
We have way too many choices to even deal with them!
I contacted Intuit and mentioned that I would never again purchase another of their products. They upgraded my product to Premier at no cost and refunded me $62 and change for my original purchase.
Intuit has pulled this same stunt (pull capability, wait for howls if any, apologize if necessary) before. They did it several years ago; I switched to a competitor’s product and haven’t bought an Intuit product since. I don’t give points for putting the cookie back AFTER you get caught with your hand in the jar.
Intuit pulled the same fiasco on me last year. It’s confusing to say the least. I read through the requirements for Deluxe just like I always do, then was directed to upgrade to a more expensive version partway through. If only their product didn’t work so well for me! 😉
Intuit pulls the same crap with their quickbook program.. I bought quickbooks proplus 2014 from intuit and downloaded it.
Found out in October that it was the “online version” and it would cease to work 1 year after i bought it. There is zero difference between onlineversion and box from store.
They then wanted me to renew for $625 i bought cd from amazon for $350 saving $275.
Then even though i said i wanted to cancel the online version multiple times and they said ok they still chatged me $625 and i had to put stop on credit card
There has to be abetter more honest company out there and when people find it intuit will suffer financially.
Lesson here do not cheat your customers. You will lose.
Intuit deserves its scummy reputation. They’ve earned it often over the years. I’ve used Quicken for over 20 years and buy a new version every two or three years simply because there isn’t a viable alternative for me. For tax preparation, I used to use Parson’s software (I think it was called Tax Cut). It was inexpensive and served my needs. Intuit bought the company and promptly killed off the competitive product. I’ve used the H&R Block product the past few years and have been relatively happy. It costs about the same as Turbo Tax, but it’s a better product, imo. I’ve never known H&R Block to pull the same sort of shenanigans as Intuit. I’ll continue to buy from the more reputable company. TurboTax can take a hike.
“ We made a change this year to TurboTax desktop software and we didn’t do enough to communicate this change to you as proactively and broadly as we could or should have.†[ didn’t do “enough to communicate†or didn’t do anything? Based on my own experience and that shared by so many others, we TT veterans would seem not to have any reason to check the version-to-version chart but simply buy the same product we have always used ]
“Intuit has a long history of doing right by our customers…†[ after the fact though, and several times now ]
“Here’s why we made the change. Over the years, we have worked hard to make it easy for you to choose the TurboTax product that is right for you and your unique tax situation. We want that choice to be clear and confidence inspiring. However, as new online and mobile technologies emerged, our products, and the tax scope and features they included, began to differ, leading to customer confusion. These differences also impeded our ability to introduce new innovations across our entire product line.†[ Huh??? Sounds like double-talk to me, but let’s try to understand… so you removed these necessary forms from the desktop version so as to be in line with an already stripped down online version, is that it? And this was to “make it easier†for us? Sorry, no sale! ]
“Our customers are the heartbeat of every TurboTax employee. Our hope is that we can regain your trust and demonstrate that our commitment to you has never been stronger.†[ The only way this will be achieved would be to return to the previously structure and cost of the products that some of us have used for about 20 years. Period. Otherwise, H&R is going to continue to raid your base by showing their “commitmentâ€. ]
Why do we have to wait to get our rebate. I had to make a trip back to Office Depot to upgrade and spend more money. I tried to get it the rebate but it required my social security number???? I agonized very much over that.
I used TurboTax for a few years, but switched over to TaxAct several years ago. TaxAct wasn’t killed; it is very much alive, and works very well (for my purposes), and cheaply. I was screwed over by Intuit once, and I never went back.
Not only is the rebate offer inadequate, but you must use it by April 20 even if you have to file an emended return later!
Here’s their language. Be sure to read the last line:
To get $25 back from TurboTax, you’ll need to have:
Filed your 2013 taxes using TurboTax Deluxe CD or download edition; and
Upgraded to TurboTax Premier or TurboTax Home & Business because of your tax situation; and
Filed your 2014 return (either e-file or mail) with TurboTax Premier or TurboTax Home & Business; and
Filed your return no later than April 20, 2015.
If you filed an extension or need to amend, your final or amended return must still be filed by April 20.
The latest news on the upgrade is Intuit will provide a free upgrade to all users who had used Deluxe version for their 2013 filing and have not paid for the upgrade. Anyone who had upgraded and will have to wait for the refund. I have been a long time user of TT and Quicken and am very disappointed with their business ethics and will no longer purchase their products in the future.
I just contacted the TurboTax customer service phone number (800-445-1875). I was put on hold for one hour and then disconnected. All the while the recording said I would be connected to a representative shortly. TurboTax claims that Deluxe users will automatically be allowed to upgrade. However the TurboTax promise had an “IF” in it. I’m always weary of the “IF” which sounds like something put in by their team of lawyers to protect Intuit and screw the public. And they don’t allow me to talk to a rep for clarification. Looks like Intuit is set to screw me out of the upgrade. I’m taking my unopened TurboTax CD back to Sam’s Club for a refund and am switching to H&R Block. What a crappy way to treat someone who has been using TurboTax for more than 15 years.