Intuit Backpedals on Controversial TurboTax Changes, Offers Free Upgrade

Photo (cc) by MrGuilt

The maker of the popular TurboTax software program has reversed changes to the program that made it more expensive for many tax filers. Intuit is also offering free upgrades for those customers.

Intuit changed this year’s TurboTax Deluxe desktop edition, which costs about $50, leaving out specific forms (Tax Schedules C, D, E and F) that were included for free in past versions of the software. If users wanted the forms, they were forced to pony up an additional $30 to $40 to upgrade to a different version of TurboTax.

The changes affected about 1 million TurboTax Deluxe users, The Wall Street Journal reports.

Many users of the tax prep software were outraged, voicing their frustrations on several websites and social media. Hundreds more wrote directly to Intuit CEO Brad Smith, according to Smith’s LinkedIn blog post.

Intuit initially apologized to customers and offered a $25 rebate, the WSJ said. But saying “I’m sorry” wasn’t enough for many enraged TurboTax users. Smith said in his post:

Our apology and the way we handled the situation significantly missed the mark. Comments on my post as well as emails, calls and online reviews clearly stated we needed to do more to rectify the situation.

Now Intuit is allowing its Deluxe desktop customers to upgrade within the software at no extra cost. The WSJ said:

An Intuit spokeswoman added that returning customers who have already upgraded to Premier at a higher price can continue to take advantage of the $25 cash-back offer through April 20 by going to www.TurboTax.com/25back.

The spokeswoman said the company expects to communicate these changes by email to customers soon.

Intuit said next year’s TurboTax Deluxe desktop software will include Schedules C, D, E and F, just as it did in past years.

It’s really no wonder that Intuit backpedaled. It’s not good business practice to anger a big segment of your customer base.

Are you a TurboTax user? What do you think of Intuit backpedaling on its software program changes? Share your comments below or on our Facebook page.

If you need professional help filing your taxes, you may not have to pay for it. Watch this video to learn more.

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