Does TurboTax ever make mistakes? (2024)

Does TurboTax ever make mistakes?

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Is there a downside to TurboTax?

Another drawback previously mentioned is the price. TurboTax is the most expensive online tax filing software , especially for freelancers and rental property owners. But it can also become pricey for individuals who need to file multiple state tax returns. (TurboTax charges $64 to file state taxes, per return.)

Is TurboTax accurate for tax returns?

TurboTax calculations are 100% accurate so your taxes will be done right, guaranteed, or we'll pay you any IRS penalties.

Can you get audited using TurboTax?

If you're ever assessed an IRS or state penalty or interest due to a TurboTax calculation error, we'll pay you the penalty and interest. Our Audit Risk Meter will show you just where you stand before you file. Of course, even with a spotless tax return, there's always a rare chance you may be randomly audited.

How do you know if you filed your taxes correctly on TurboTax?

To check your e-file status, sign in to TurboTax, and go to Tax Home (if you're not already there). If you've submitted your return, you'll see a pending, rejected, or accepted status.

Why are people complaining about TurboTax?

The Federal Trade Commission has issued an Opinion and Final Order that Intuit Inc., the maker of the popular TurboTax tax filing software, engaged in deceptive advertising in violation of the FTC Act and deceived consumers when it ran ads for “free” tax products and services for which many consumers were ineligible.

Should I trust TurboTax?

100% Accurate Expert-Approved Guarantee: If you pay an IRS or state penalty (or interest) because of an error that a TurboTax tax expert or CPA made while providing topic-specific tax advice, a section review, or acting as a signed preparer for your return, we'll pay you the penalty and interest.

Why not to use TurboTax?

Cons: More expensive than other tax-filing software. Just simple tax returns (including taxpayers with only W-2 income) qualify for TurboTax Free Edition. Processing state tax returns generally costs extra.

What happens if TurboTax makes a mistake on your taxes?

TURBOTAX DESKTOP GUARANTEES

100% Accurate Calculations Guarantee – Individual Returns: If you pay an IRS or state penalty or interest because of a TurboTax calculation error, we'll pay you the penalty and interest.

Why is my refund lower on TurboTax?

There are many events that may reduce your refund, including: Starting an additional job (especially self-employment) Getting a significant raise, but your W-4 staying the same. Selling stock, crypto, or other investments.

What raises red flags with the IRS?

Unreimbursed employee expenses are perceived to be one of the most common IRS red flags. The IRS frequently reviews unreimbursed employee expenses in audits, as they are widely considered a high abuse category for W2 employees.

Does the IRS actually review every tax return?

The Internal Revenue Service uses a combination of automated and human processes when selecting which tax returns to audit. All tax returns are compared with statistical norms, and those with anomalies undergo three layers of review by personnel.

Who gets audited by IRS the most?

Who Is Audited More Often? Oddly, people who make less than $25,000 have a higher audit rate. This higher rate is because many of these taxpayers claim the earned income tax credit, and the IRS conducts many audits to ensure that the credit isn't being claimed fraudulently.

What is the most common mistake made on taxes?

Does TurboTax take money from your refund?

You can use your federal refund to pay your TurboTax fees. There's a $40 processing fee charged by the bank that handles the transaction when the IRS processes your return.

Does TurboTax get you the best refund?

No tax software provider can guarantee you the best refund. Your tax refund is based on your income, deductions, credits, and the amount of tax you paid in for the year. If you input your return information accurately, you should receive the same refund no matter which software you use.

What is the TurboTax scandal?

In a 2022 settlement signed by the attorneys general of all 50 states, Intuit agreed to suspend TurboTax's “free, free, free” ad campaign and pay $141 million in restitution to nearly 4.4 million taxpayers nationwide. Settlement checks were sent out last year.

Is TurboTax really under investigation?

The Federal Trade Commission ruled in a final order and opinion Monday that TurboTax, the popular tax filing software, engaged in deceptive advertising and banned the company from advertising its services for free unless it is free for all customers.

Is TurboTax being investigated?

The FTC first sued Intuit in March 2022 over the ads pitching free TurboTax products. The commission said about two-thirds of tax filers in 2020 would have been ineligible for the company's free offerings, such as freelance workers who received 1099 forms and people who earned farm income.

What's better than TurboTax?

H&R Block and TurboTax are the two most comprehensive online services available and likewise, they are also some of the most expensive. However, while H&R Block was once cheaper than TurboTax, the companies are now nearly perfectly aligned when it comes to cost, with the self-employed being the exception.

What is the best place to file taxes?

IRS Free File and Free Fillable Tax Forms

The IRS partners with eight different companies to provide its Free File Program, which offers tax software to Americans whose adjusted gross income, or AGI, is $79,000 or less. Among those listed are TaxAct and TaxSlayer. Both are on our list of the best tax software for 2024.

Is going to a tax person better than TurboTax?

Even though TurboTax and other programs are easy to use, they have their own limitations. Spending the extra cash to hire a professional can actually save you money in the long run if your financial situation becomes complex. Below are some tips for when you should leave the software to an experienced professional.

Do professionals use TurboTax?

TurboTax is only licensed for personal use. If you'd like to prepare professionally, we have a number of software options available. What do I need to set up my own tax practice? We have lots of information on starting a new tax practice.

Why is TurboTax charging me $39?

Yes, there is a $39 fee for using the "Pay With My Refund" option to have TurboTax fees deducted from your federal tax refund. You can always remove that option to save the $39 fee, as long as you haven't yet e-filed. How do I remove Pay With My Refund fees in TurboTax Online?

What is the H&R Block controversy?

The Federal Trade Commission has filed an administrative complaint against H&R Block, alleging the company deceptively marketed free filing products and wrongfully deleted users' tax data. The action comes one month after the FTC banned “deceptive advertising” of free filing products from TurboTax maker Intuit.