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Intuit Offering Partial TurboTax Upgrade Rebates


TurboTax Deluxe(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.

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Click vs. Brick Follow-up

 Last week, Consumer World presented the results of its survey of prices on a retailer’s website compared to the prices charged for the same item at its brick-and-mortar store locations. The prices were not always the same, and web prices were not always lower.

To emphasize the point that you always have to check prices in both places, online and in-store, here is an example of the inconsistency week to week of pricing between the two.

In the original story, we showed a huge price difference on a Dell computer at Staples.com versus at Staples stores:

Staples week one prices

Just before Black Friday, the price online was $429.99, but in-store it was $180 higher — $609.99!

Fast forward to last week, December 7. The price differences reversed.

*MOUSE PRINT:

in-store week 2

—–Versus—–

week 2 online

This time, the in-store price was $130 lower than the online price. Go figure.

As we said, there is no rhyme or reason to the price variations. You can’t predict whether the online price will be cheaper or more expensive than the in-store price, so you have to check both each time.

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Holy Ship, Toys-R-Us Changed the Delivery Address of my Order

  As we all begin our holiday shopping online, this word of caution: scrutinize everything on the screen, fine print or not, before finalizing your order. If not, you may be in store for an unexpected surprise.

Last week, MrConsumer decided to send a toy to a friend, Jami, in Colorado for her kids. Toys-R-Us had a crazy low price for an electronic version of Scrabble, so he proceeded to order it at their website. Here’s the shopping cart showing the item:

Cart

Since this order qualified for free two-day shipping through Shoprunner (hint: AMEX cardholders should sign up for a free account good at many retailers), MrConsumer clicked the Shoprunner button and entered the Colorado address that the toy should be shipped to.

shoprunner screen

Not wanting this purchase to go on his American Express card, MrConsumer dismissed that screen and clicked the regular checkout button knowing that free shipping would still apply even entering a different credit card number.

The final checkout screen all seemed to be in order with the gift going to Jami, so he clicked the submit order button.

A few days later, FEDEX sent a notification that the gift had been delivered. Checking with Jami, she said she never received it. Did someone steal it from her doorstep?

Checking back at the FEDEX site, there was a notation that the package was left on a porch in LINCOLN, NEBRASKA! What??? Lincoln is where Jami used to live. Could MrConsumer have been so absent-minded as to erroneously list her old address on the ToysRUs.com order?

Going back to retrace his steps on the Toys-R-Us website, MrConsumer created a test order for the same toy. And just as depicted above, when clicking the Shoprunner button, the Colorado address automatically appeared. However, when clicking the regular checkout button, it appears that Toys-R-Us changed the address to Lincoln, Nebraska because that is the address it had stored from previous orders.

*MOUSE PRINT:

Toys R Us

MrConsumer called Toys-R-Us and walked the agent through all the steps above so she could see the glitch in the system. They generously provided a merchandise credit, and said they would forward this issue to their tech people.

The lesson here is that you have to scrutinize every Internet order, big print and small print alike, before hitting the submit button. Is it the right item? Is the order for only one item and not two by mistake? Did all coupon codes get accepted and deducted? And surprisingly, is it going to the right place?