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TurboTax, the leading do-it-yourself tax software by Intuit, has caused an uproar with their customers claiming shady tactics of “price gouging” & “bait & switch”. Intuit has removed popular tax forms from their Basic & Deluxe programs, forcing clients to upgrade their software by at least $30 in order to have access to the same forms that were in last year’s programs:
Starting this year, people who prepare their taxes on a personal computer can’t use TurboTax Deluxe if they want to electronically file common tax forms, including Schedule C for a business, Schedule D for capital gains and losses or Schedule E for rental property. Instead, they must upgrade to the Premier or Home & Business versions—which cost up to $30 more than the $50 Deluxe version as of Friday.
Customers with simpler returns face a similar issue: They can no longer use TurboTax Basic if they want to itemize their deductions on Schedule A, such as mortgage interest or charitable donations, instead of claiming the standard deduction of $6,200 for a single filer or $12,400 for a married couple. Now, they will need to upgrade to TurboTax Deluxe, which costs up to $30 more than the $20 Basic.
“The company seems intent on fleecing the customer by increasing the price with no product improvement,” says Don Rickelman, a retired entrepreneur in Naples, Fla. In the past, he says, he has used TurboTax Deluxe to report his investments, but now, like many other users, he is considering alternatives.