TurboTax is very deceptive and is facing class action lawsuits over this very issue I'm describing. Bottom line: If you make less than $39,000 AGI you DO NOT need to pay TurboTax to file.
TurboTax has two "free" editions. The first one you will access if you go to TurboTax.com and is called "Free Edition." This one will require you to upgrade to a paid version as soon as you come across a form this version doesn't "support." The second one is called "IRS Free File Program delivered by TurboTax" and cannot be accessed by going directly to TurboTax.com. This one is truly FREE.
Most people, as I was for years, are under the impression that if your return isn't considered "simple" (ie: W2 only) that you will need to upgrade to Deluxe or Premiere to file additional forms. For example, I had a 1099 from my broker, an HSA, and a couple of other things so TurboTax said I needed to upgrade and pay. I thought that was reasonable so I did so. TurboTax ripped me off!
Since I made below $39,000 and even though I had these additional "complex" forms I did not have to pay the $100 that I was charged had I gone to irs.gov/freefile and clicked through to TurboTax using the IRS link. If you use the IRS link to Turbo Tax you are directed to the hidden Turbo Tax Free File Edition.
Unfortunately, I've been screwed over by TurboTax for years and I just found out recently after filing this year's returns. I've called them and requested a refund explaining to them that I qualify for the IRS Free File Program and since I followed a promotional link they sent me offering "$30 off" that I had no idea I qualified for IRS Free File. They sent me a link for a form to fill out for my TurboTax charge refund of $100 and I am currently waiting for the results of that.
I have so much more to say about this but I'm typing this on my phone and just wanted to get this out there ASAP so hopefully I can save at least one person.
ProPublica has great information about this I'm sure you can find if you do a quick Google search. They also have a script for when you call TurboTax to request a refund if you qualify for Free File but have already paid.
Found it: Updated: If You Paid TurboTax but Make Under $34,000, You Could Get a Refund. Here’s How.
(It says $34,000 because that was last year. This year it's $39,000)
Please, please, please do not pay Turbo Tax if you make below $39,000 even if your return isn't "simple."
Find the link to TurboTax Free File program here.
Here's a link listing all of the forms supported under "IRS Free File Program delivered by TurboTax." You can see it's quite comprehensive and includes forms that you would need to pay the upgrade fee for in the normal "Free Edition."
TurboTax and H&R Block Used “Unfair and Abusive Practices,” State Regulator Finds
Please let everyone know that you can!
February 28, 2021 at 11:23PM
