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FTC bans TurboTax from advertising 'free' services, calls deceptive advertising

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Re: FTC bans TurboTax from advertising 'free' services, calls deceptive advertising

#81

Finally, something is being done. Paying taxes should be free for most people. Especially if you only have to deal with the standard deductions.

A 1040EZ covers that case and filing it is the cost of the stamp and envelope.

My understanding is that if a 1040EZ is appropriate for you, then TurboTax will also be free. It's only if you have a more complex filing situation that they charge. Please correct me if I'm wrong, though.

Re: FTC bans TurboTax from advertising 'free' services, calls deceptive advertising

#82

Any recommendations on how to really file taxes for free (federal and state)?

I've been using https://www.freetaxusa.com/ the last couple years and plan to continue this year. It is free for Federal (though I usually pay for an upgrade), and state is $15. The only option I know of for free state is to do the forms manually.

I second this suggestion. The free federal taxes and $15 state actually mean free federal and $15 for state! You can certainly add on the "pro service" or "audit protection" or whatever if you want, but it is simple to say NO to those and just do the forms. This year, I opted for the "audit protection" because of some new tax forms I had to fill out, but overall I only paid $45 with the sales tax.

I used to use Turbo Tax and paid about $100 per year on average, but it was simple to switch to using another provider, I just had to get the previous year's return out to fill some stuff that is filled automatically if you use the service each year.

Re: FTC bans TurboTax from advertising 'free' services, calls deceptive advertising

#83
post #49

Finally, something is being done. Paying taxes should be free for most people. Especially if you only have to deal with the standard deductions.

If you're standard deduction and just have a few simple sources of income, filing is easily free. Should it be electronic and pre-filled? Yes. But this idea that you need an accountant or tax prep software if you have a W-2 and a 1099 just isn't true. The forms are free.

Half of the allure of turbo tax is figuring out if the standard deduction is more or less favorable than itemized.

Maybe the IRS should start by building a tool that points you in the right direction before it tries to build a TurboTax clone.

Re: FTC bans TurboTax from advertising 'free' services, calls deceptive advertising

#84
post #79
post #49

Earlier quoted context omitted.

If you're standard deduction and just have a few simple sources of income, filing is easily free. Should it be electronic and pre-filled? Yes. But this idea that you need an accountant or tax prep software if you have a W-2 and a 1099 just isn't true. The forms are free.

Awesome, let's do better and have the IRS fill out your form in Feb or March, mail it to you, and if you disagree you can still file yourself. That way, 95% of cases are covered and don't have to even deal with taxes.

By all means. Though I think it's considerably less than 95%. A lot of people probably have something non-standard. I have no problem with pre-filled forms that explicitly only cover certain types of transactions.

Re: FTC bans TurboTax from advertising 'free' services, calls deceptive advertising

#85
post #56

Earlier quoted context omitted.

Our documents should not be sent automatically to the IRS if the IRS won't figure out our taxes.

Can they figure out our taxes without our returns? For simple stuff like paychecks maybe. What if you are self-employed? What if you are a contractor? What if you barter or pay cash?

of course it would not cover all cases... but I'm guessing that it would cover most people... why would I want them to have my files if all they are going to do is use them against me anyways?

Re: FTC bans TurboTax from advertising 'free' services, calls deceptive advertising

#86

I just saw an TurboTax Ad where a guy was like "I Like free stuff" and then it said he was "happy to read the disclaimer" on TurboTax and see that "Roughly 37% of taxpayers qualify" which he looks thoughtfully in the distance and says "Thats me!" I thought it was a funny commercial because 37% doesn't seem like a lot and Turbotax is portraying it as the average person will identify themselves as part of that 37% even…

How this ad got green lit, distributed to various mediums (tv ads, yt channel, social media), and nobody saying “wait, this is terrible” is unfathomable to me.

Re: FTC bans TurboTax from advertising 'free' services, calls deceptive advertising

#87

Finally, something is being done. Paying taxes should be free for most people. Especially if you only have to deal with the standard deductions.

A 1040EZ covers that case and filing it is the cost of the stamp and envelope.

And an understanding of tax law

Re: FTC bans TurboTax from advertising 'free' services, calls deceptive advertising

#88
post #45
post #14

Earlier quoted context omitted.

We can be upset at politicians for "selling out" to the lobbyists. We can be upset at lobbyists for pushing things that they know aren't in the best interests of consumers. We can be upset at businesses for wanting to take advantage of consumers for their own gain. All of these can be true at the same time.

The difference between those three groups is that the politicians are the only ones not doing the job expected of them. Lobbyists are supposed to lobby on behalf of whoever pays them. Businesses are supposed to advocate for the interest of themselves, their shareholders, and their employees. It would be verging on incompetence for a business to ignore a political debate that would effectively destroy the business ove…

I don’t think that’s a meaningful distinction. A lot of people would say lobbyists shouldn’t even exist as a profession. Whether they are “just doing their job” begs the question of whether the job should exist.

Re: FTC bans TurboTax from advertising 'free' services, calls deceptive advertising

#89

I just saw an TurboTax Ad where a guy was like "I Like free stuff" and then it said he was "happy to read the disclaimer" on TurboTax and see that "Roughly 37% of taxpayers qualify" which he looks thoughtfully in the distance and says "Thats me!" I thought it was a funny commercial because 37% doesn't seem like a lot and Turbotax is portraying it as the average person will identify themselves as part of that 37% even…

TurboTax is marketing to the kind of people who think getting big refunds is a good thing. That's generally people with lower incomes, so this fits that target.

Re: FTC bans TurboTax from advertising 'free' services, calls deceptive advertising

#90

I just saw an TurboTax Ad where a guy was like "I Like free stuff" and then it said he was "happy to read the disclaimer" on TurboTax and see that "Roughly 37% of taxpayers qualify" which he looks thoughtfully in the distance and says "Thats me!" I thought it was a funny commercial because 37% doesn't seem like a lot and Turbotax is portraying it as the average person will identify themselves as part of that 37% even…

This is distressingly common in marketing. "0% APR financing for well qualified buyers." Where well qualified means 720 FICO score, lower debt to income, and lower payment to income ratios. These details are not even in the fine print of the ad. Then there's ads that show a picture of the high end version of a product with text "starting from !" (that corresponds to the base model).
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