You’ve probably seen ads telling you TurboTax is free. Technically that is true, for your federal return — provided you have a very simple tax situation. For most people, there is a cost that you may not realize until you are deep into preparing your return. TurboTax requires you to upgrade to a more advanced version. Most users are so far into the process they pay the fee to finish with the ordeal. Also, what isn’t clear: the state tax return is not free.
TurboTax’s promise of “free tax preparation” quickly transforms into a price tag for most users. John and Bruce aren’t the only one who think this sucks: At least five state attorney general’s have opened investigation’s into TurboTax’s deceptive marketing of “free” services. ProPublica’s investigative expose takes a look at the state probes. The IRS, who entered into a non-compete with Big Tax Preparers if they promised to offer free filing, looks to be changing the terms of that agreement after repeated bad faith actions by TurboTax and others.
On the positive side, if you correctly use TurboTax or any of the other “free” software packages, your return should be accurate. More of a problem than cost is that none of these applications give you much tax planning. By the time you struggle through the return, you are probably so tired of the process you file and forget.
Bruce Larsen and Enrolled Agent John R. Dundon II discuss the limitations of “free” or low-cost tax applications and point out the costs that you may pay. They also point out how tax-planning can be just as important as tax-preparation.
If you would like us to look at last year’s return to see if we can provide any suggestions or help with tax-planning, click the button below and we’ll be happy to set up a truly FREE Discovery Session.
A one-hour review of your tax situation can save you years of regret
Set up a complimentary tax review Discovery Session with Bruce Larsen. He will review your tax returns and information to see if your situation could benefit with a new tax strategy.
If you are looking for tax preparation services, John is happy to help. You can visit John’s website to contact him online, you can email him at firstname.lastname@example.org, or you can call 720.234.1177.