Looking online, TurboTax states that it doesn't include the 1099-G form for unemployment benefits in its free services online - which, no, isn't mentioned as someone on the ads rattles off the words "Free. In 2021, though, the complaint noted that the "simple" definition included claiming unemployment income. While TurboTax did respond to the Free Press request for a statement and information about the ads going forward, it did not respond to specific questions sent Wednesday.įor the current tax year, the FTC noted in its complaint that TurboTax online defines a "simple” tax return "as a return that can be filed on a Form 1040 with limited attached schedules to cover a few distinct tax situations, including student loan interest paid." What happens if you were jobless in 2021? She wasn't sure why TurboTax was suddenly charging her for their services. Reynolds wanted to do her taxes in January but had to wait until late February when the State of Michigan finally issued its 1099-G forms. She collected unemployment benefits and this year received a 1099-G to report those benefits, which are taxable on 2021 returns. She could not work when the hospital didn't offer outpatient services, such as the ultrasounds, in much of 2021. Reynolds, 68, is retired from her job at Troy Beaumont Hospital but she had gone back to work periodically as an ultrasound technologist at the hospital. When I signed up for this, it was going to be free,'" Reynolds told me. Once the work was done, Reynolds discovered that TurboTax wanted her to pay $39 each for her Michigan income tax return and her federal return.
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She saw the TV ads, had success in the past doing her daughter's taxes for free through TurboTax and fully expected that TurboTax wouldn't charge her a dime.įree in her case, though, added up to $78. Karen Reynolds, of Rochester Hills, spent about two hours working on her tax return online through TurboTax. After doing your taxes, you could be told that you need to "upgrade" and pay for a more specialized online tax service. Like free checking - where many people who live paycheck-to-paycheck got hit with high overdraft fees over the years - many cannot bank on a free ride. “Over the past eight years, TurboTax products have helped nearly 100 million Americans file their taxes for free, and our most recent free advertising campaign has only accelerated the use of TurboTax free offerings, driving approximately 60% growth from 11 million free filers in 2018 before the campaign launched to more than 17 million free filers in 2021.”Īnd in a legal filing dated Tuesday in the ongoing FTC case, the company said it had volunteered to and did pull down most of the "free, free, free" ads previously scheduled for the remainder of the tax season and the remainder would be "down by Friday." 'It was deceptive' The "free advertising campaigns have led to more Americans filing their taxes for free than ever before and have been central to raising awareness of free tax prep,” according to Kerry McLean, executive vice president and general counsel of Intuit. Intuit is vigorously challenging the FTC complaint and in an online blog noted: “The FTC’s arguments are simply not credible." Free? Sure, for simple tax returns, the FTC states.
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