TurboTax - your voice is requested.

[Strongsilence-CPA]

A local community program asked me to speak about TurboTax.  The emphasis is information and education and nothing in the show is intended to promote me.  Is there anything untrue, inaccurate, false or misleading in this answer?

To this question:  Can you save taxes using Turbo Tax?

My answer:

In most cases, you can save saves. Compared to preparing your tax return by yourself, consumers generally can feel confident with TurboTax. However, tax practitioners have noticed that TurboTax’s question-based system and artificial intelligence may not spot all relevant tax federal and California tax requirements and tax-saving opportunities - whether this year or the longer term.  The more complicated your tax picture, the more chances for error with TurboTax.

[TaxGuyBill]

Can you clarify the background?

1. Why are YOU commenting on TurboTax, when you don't use it?  Or do you work as a TurboTax advisor or something like that?
2. Why are they asking specifically about TurboTax, rather than general do-it-yourself tax software?
3. Your comment is comparing it to preparing the tax return without a program.  Is that really what the question is about?  The question itself could also be interpreted as comparing TurboTax to other tax programs, or comparing it to a tax professional.

Because I am quite familiar with TurboTax, I'll also add the fact that it is FILLED with errors and incorrect guidance.  And despite the fact that the 'regular' commenters there have passed on details about some gross errors, the developers ignore most of the errors.  There was one scenario that if the taxpayer followed what the program told them, they would have paid $20,000 more in income tax than they were supposed to.

At least for more complex situations, in my opinion using a do-it-yourself program is a great way to pay MORE taxes than you need to.

[qbteachmt]

I like most of it.

"Compared to preparing your tax return by yourself,"

Compared with trying to do this manually...

You don't "save taxes." You want to accurately report and pay taxes only on what you are required to pay taxes against, so you want to reduce errors, and take full advantage of all provisions that apply to you, and in general, avoid overpaying, which is not the same as saving. Using software helps you avoid costly mistakes.

I really like this part: "However, tax practitioners have noticed that TurboTax’s question-based system and artificial intelligence may not spot all relevant tax federal and California tax requirements and tax-saving opportunities - whether this year or the longer term. The more complicated your tax picture, the more chances for error with TurboTax."

Especially business people need to know that the tax provisions applicable to them are not well managed in TT. Since they already need to know about their business to stay in business, they should not also need to learn all the tax code required to know if this is being handled well in TT and that's why they, as a professional, would turn to (someone like) you, as a professional. We can't all know everything about everything.

Then, point out how the "supply chain" in tax law changes affected you as a professional, while waiting on Congress and the President to pass retroactive provisions, the software delay in implementing the updates, and the people that filed early anyway. File early, file often!

[Strongsilence-CPA]

TgB

Thanks. I haven't used it in 25 years, but I get clients who are upset with it, or lack confidence in it, more every year.

The show's producer asked me to come speak about this topic. I didn't choose it.

There will be time spent on TT and also general advice about tax preparation choices available to the layperson. I will mention that TT competes with other brands and will also name a few other brands.

[Strongsilence-CPA]

Thank you QBteachmt.

Appreciate your thoughts.  "We can't all know everything about everything" is my message to folks moving away from TT.

[TaxGuyBill]

To me, the question itself is bias and I would immediately negate that in my answer.  I would revise the first part of your response to something like this:

In most cases, using TurboTax and other similar do-it-yourself programs can reduce taxes compared to preparing your tax return by yourself. 

[Strongsilence-CPA]

Agree Bill. 

[George4Tacks]

Your response is reasonable.

If I were speaking, I would also encourage attendees to consider programs like VITA and Tax Aide, if not for themselves then for their low income employees and retirees that they know. A face to face tax prep is likely to produce the most tax savings and improve accuracy. Tax savings can sometimes be the result of inadvertent data input error. 

[IRonMaN]

I'm leaning more in George's direction.  As a professional tax preparer there is no way in the world (not even for a milllllion dollars) that I would go on a program and speak about the virtues of Turdddotaxxx.  That's like a professional basketball player going on TV and talking about the virtues of Nike or some other footwear company.  It's one thing to go on and say that using a tax software or VITA or something of that nature can help improve your chances of getting your return done right, but I would never speak about a specific software.

[BobKamman]

My answer would begin with,

"You asked about TurboTax but I assume you mean any commercial tax software marketed to individuals, not professionals.  Frankly, TurboTax doesn't have much competition, but that doesn't make it any better than other programs.  If  the question is whether do-it-yourself taxpayers get better results using their home computer, rather than pen and ink -- my answer is definitely, yes.  I have seen too many people cheat themselves and pay too much tax, when they are relying only on the IRS instruction booklet.  But even software users can end up cheating themselves.  There are many more examples of how this can happen, than there are of situations where the IRS collects less..."

[Strongsilence-CPA]

The final product:

The HypeCats.com website, https://hypecats.com/article/should-you-use-turbo-tax/

YouTube post, https://www.youtube.com/watch?v=Y4XyeX1w1vg

Facebook, https://www.facebook.com/hypecats

[TaxGuyBill]

Very cool!

[IRonMaN]

Nice job.

[sjrcpa]

Good job Paul!

[Accountant-Man]

On the video, the subtitle "tax preperation" was misspelled.

Preparation. 

[sjrcpa]

I noticed that, too.

I expect that is beyond Paul's control.

[IRonMaN]

I'm guessing Intuit provided them with the subtitle 😶