Finance

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Is TurboTax Really Free This Year?

You may have seen the TV ads for TurboTax this year promising completely free service tax preparation and filing.

Every year, Intuit, the maker of TurboTax, advertises some type of free service but it often comes under scrutiny of consumer regulators for poorly disclosed catches as the FTC found last year. This year’s offer is bolder than ever. It promises tax preparation and filing that is 100% free if you didn’t file using TurboTax last year. While the TV ads are very clear this year, here is a summary of the catches.

*MOUSE PRINT:

  • You must use the TurboTax app to start your taxes.

  • You must file your taxes using the TurboTax app by February 18, 2025.

  • You must not have used TT last year, but use of it prior to that is okay.

  • TurboTax Live is not free.

  • The app is not appropriate for more complex tax situations such as for itemized deductions, business income, investment sales, etc. However, as long as you begin your tax prep in the app, you can switch to do it on your computer even in a more expensive product like TurboTax Deluxe or higher, whose fees will be waived, they say. But you then have to return to the app to file your taxes by the February 18th deadline.

  • It is unclear if their usual fee to file your state return is being waived.

    • Perhaps those folks with very simple returns will find this to be a tempting offer, but I can’t imagine how tedious it could become for more complex situations doing it on a cellphone.

    Here’s another option for people with simple returns. Uncle Sam has expanded its new Direct File free program to 25 states this year.

    Regular TurboTax offline users, like MrConsumer, face a number of challenges this year as well. Amazon did not run its usual sale for TurboTax Deluxe discs at the end of the year. And many people missed their November 30th sale when it was $45.99 with a $10 Amazon gift card. Also changed this year, TurboTax Deluxe is a download only product — the disc version has been discontinued.

    Costco advertised in its January Connection magazine that from January 18 to February 7 it will be offering $11 off of TurboTax Deluxe (making it $44.99), $18 off of Premier, and $20 off Home & Business. Sam’s Club will have a similar offer.

    UPDATE: Amazon has matched Costco’s price and upped the ante! The Amazon offer includes a $10 Amazon gift card when you buy TurboTax 2024 Deluxe plus State for $44.99. This will be the lowest price of the tax season if history is any guide. BUT… Amazon only offered this deal for one day, Saturday, January 18th. Now it is $44.99 without the gift card.

    [Consumer World will earn a small commission if you purchase from this link.]

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    Sometimes Zero-Percent Financing Is Not Zero Percent

    Don’t you get annoyed when you see something advertised as one thing, but then learn there is also a sneaky catch that changes the offer?

    That’s what happened recently to Mark D. He told us about a TV commercial he had seen from Sleep Number — the adjustable bed company — offering zero-percent financing on certain mattresses.

    Sleep NUmber TV ad

    The fine print that is very easy to miss has a surprise for purchasers who were expecting to pay no finance charges.

    *MOUSE PRINT:

    Sleep Number 2% fee

    The company added a sneaky two-percent junk fee onto each monthly payment.

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    Fine Print Is Not Just in Print Anymore

    We’re celebrating April Fool’s Day a week early with a little bit of consumer humor.

    Remember those old Federal Express commercials with actor John Moschitta rapid-talking his spiel?

    Well, almost two decades later, he is not alone any longer. This time, however, even faster speed-talking is used to make important disclosures and disclaimers in a radio commercial for a Boston-based financial advisory service.

    *MOUSE PRINT:

    That was perfectly understandable, right?

    We asked the company, Hackmann Wealth Partners, if those disclosures were required by certain regulations and whether they would make future ads more understandable. They did not respond.

    Presumably the disclosures said something like what is stated in a footnote on their website:

    Investment advisory services offered through Brookstone Wealth Advisors, LLC (BWA), a registered investment advisor. BWA and HWP Inc, DBA Hackmann Wealth Partners, are independent of each other. Insurance products and services are not offered through BWA but are offered and sold through individually licensed and appointed agents.

    Radio listeners deserve to be able to hear and understand what these folks glossed over in their commercial.