If you paid any attention to tax software, you may have heard that Intuit made a change to its TurboTax product this year. You won’t be able to e-file with TurboTax Deluxe if you need to report capital gains on Schedule D. You can still fill out Schedule D in Forms Mode and mail your return. If you want e-file and Schedule D you will have to upgrade to TurboTax Premier.
Intuit has been nudging customers for years to use TurboTax Premier if they have taxable investments but many users have got by with the less expensive TurboTax Deluxe. From Intuit’s point of view, those customers were using the wrong product. Now it’s drawing a clear distinction between its different product flavors: Basic for simple returns, Deluxe for itemizing deductions, Premier for investors and rental property owners, Home & Business for the self-employed.
The change only affects those who sold investments or received capital gains distributions in a taxable account. If you only have 401k’s and IRAs, you are not affected. If you only bought investments and/or received interest and dividends in a taxable account but you didn’t sell (buy-and-hold, remember?) or receive capital gains distributions, you are not affected.
Those who are affected aren’t happy with the change. They stormed Amazon with 1-star reviews.
Intuit’s competitor H&R Block also came in with a free switching offer. Here’s the offer sent to me by a H&R Block representative:
To any TurboTax customer who has already purchased TurboTax Basic or Deluxe and wants to try H&R Block, just email us at [email protected] and include the following information:
- Your name, address, and phone number
- The type of operating system you use (Windows/Mac)
- A photo/scan of your store receipt or a copy of the email showing your download code
Then, we’ll send you a link for one FREE download of H&R Block Deluxe + State. (Offer subject to change.)
Meanwhile, Intuit still has its satisfaction guarantee. Anyone not happy with their TurboTax purchase can request a refund.
I have used both TurboTax and H&R Block software before. They both do a good job. They can import each other’s file from the previous year. Lately I have been using H&R Block software because it’s less expensive. Once I have $1 million at Fidelity or Vanguard to qualify for free TurboTax Premier, I may switch to TurboTax.
If you have always been using TurboTax, you might want to take this free offer from H&R Block to try both software side-by-side. Whichever does a better job at the right price wins.