IRS Poised To Weigh In On Free Tax Prep Service—Sending TurboTax And H&R Block Stocks Sliding (2024)

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IRS Poised To Weigh In On Free Tax Prep Service—Sending TurboTax And H&R Block Stocks Sliding (2024)

FAQs

IRS Poised To Weigh In On Free Tax Prep Service—Sending TurboTax And H&R Block Stocks Sliding? ›

The IRS is set to release a report this week on the feasibility of a free, government-run tax filing service as part of an effort by the Biden administration, but companies like TurboTax and H&R Block have spoken against the initiative, which would allow Americans to file directly with the IRS and forgo accountants and ...

Can you use free TurboTax if you have stocks? ›

You won't be able to file with TurboTax Free Edition if you have itemized deductions, unemployment income, business income, stock sales, rental property income or income reported on other forms, like income from crypto investments.

Is there a class action lawsuit against HR Block? ›

Bloomberg Law additionally reported in July 2023 how H&R Block — along with two other Alphabet Inc. -owned companies, Google and TaxAct Holdings Inc. — was hit by more proposed class action lawsuits accusing companies of user privacy violations.

Why not to use H and R block? ›

In addition, H&R Block fails to clearly explain which of its products cover what forms, schedules, or tax situations, leading many consumers to start completing their tax returns in products that are more expensive than they need.

What is the TurboTax scandal? ›

The Federal Trade Commission has issued an Opinion and Final Order that Intuit Inc., the maker of the popular TurboTax tax filing software, engaged in deceptive advertising in violation of the FTC Act and deceived consumers when it ran ads for “free” tax products and services for which many consumers were ineligible.

Which version of TurboTax do I need for stocks? ›

TurboTax Premium is capable of handling over 10,000 stock transactions and 20,000 crypto transactions, so you're covered no matter how much you trade.

Which TurboTax is right for stocks? ›

TurboTax Premier is most suitable for those with stocks or crypto, or capital gains and losses from other income who will need to file a Schedule D.

What is the H&R Block scandal? ›

H&R Block used deceptive marketing and unfairly deleted tax filer data, FTC complaint alleges. The Federal Trade Commission has filed an administrative complaint against H&R Block, alleging the company deceptively marketed free filing products and wrongfully deleted users' tax data.

What is the federal lawsuit against HR Block? ›

The lawsuit in Kansas City, Missouri, federal court claims the FTC's use of internal administrative law judges to hear cases violates the US Constitution. The FTC last month accused H&R Block of deceiving customers with broad marketing for “free” online tax filing services that really only apply to simple returns.

How much is the H&R Block lawsuit payout? ›

On Monday, the Los Angeles city attorney's office announced that H&R Block had agreed to settle the city's lawsuit and repay customers as much as $1.6 million. The announcement follows the $141-million settlement that 51 state attorneys general struck with Intuit in 2022.

Why is HR Block not free? ›

It often isn't free. H&R Block's online tax product is free only if you meet H&R Block's definition of a “simple return,” a tax situation that the FTC says many people think they have, but don't.

Can H&R Block be trusted? ›

We view H&R Block as a top option for filing your taxes online. I used the service to file my return for free this year. But make sure you qualify to file for free before you start.

What is the best tax preparation software? ›

TaxSlayer Self-Employed
CompanyForbes Advisor RatingLearn more CTA below text
H&R Block4.9On H&R Blocks Website
Jackson Hewitt Online5.0Read Our Full Review
TurboTax Deluxe4.8On Intuit's Website
TaxSlayer Self-Employed4.0On TaxSlayer's Website
2 more rows
2 days ago

Is TurboTax getting investigated? ›

Intuit pulled its “free, free, free” ads in 2022, after the FTC and all 50 state attorneys general began investigating Intuit's advertising, but the company continued to tout free tax prep. Of course, for most customers, TurboTax wasn't free.

Is there anything better than TurboTax? ›

While not as well known as TurboTax and H&R Block, TaxAct offers many of the same features at even more affordable prices. If you're a small-business owner or sole proprietor who needs more robust tax software than the basic free plans, TaxAct is a great TurboTax alternative to look into.

Is TurboTax being investigated by the government? ›

The FTC first sued Intuit in March 2022 over the ads pitching free TurboTax products. The commission said about two-thirds of tax filers in 2020 would have been ineligible for the company's free offerings, such as freelance workers who received 1099 forms and people who earned farm income.

Do I need TurboTax Premier if I own stocks? ›

Use TurboTax Deluxe if you make your money through W-2 employment and intend to take line-item deductions instead of the standard deduction. Use TurboTax Premier if you have investment income or losses.

Can you use TurboTax Deluxe if you have stocks? ›

Does TurboTax Deluxe 2022 handle stock sales? All desktop CD/download products (including Deluxe) can handle sales of stocks, bonds, mutual funds, etc, and can import from brokerages, etc.

Do I need TurboTax premium for investments? ›

TurboTax's Premium tier still caters to investors and filers with rental income. You can report investment income and rental property while maximizing your refund. This year, TurboTax Premium also lets freelancers and business owners file their returns.

Who can use TurboTax free edition? ›

TURBOTAX ONLINE/MOBILE PRICING:

TurboTax Free Edition: TurboTax Free Edition ($0 Federal + $0 State + $0 To File) is available for those filing Form 1040 and limited credits only, as detailed in the TurboTax Free Edition disclosures.

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