Tuesday, August 26, 2025

TurboTax Accuracy Guarantee is Worthless (UPDATE: Refund on the way!)

 Rather than use the TurboTax software in 2022 and 2023, wed hired one of their "experts."  For 2024, we went back to using TurboTax Desktop.  Their "expert" misfiled both years.  We oweed Idaho about $3000 in taxes, interest, and penalties.  

I complained about paying hundreds of dollars to have their "experts" do it wrong and asked them to refund those fees and the interest and penalties.  After several not entirely useful exchanges of emails, they needed to talk to me on the phone.  This should have been a warning.

Their tax expert essentially started listing defects in the return their "experts" screwed up.  Among them was that a PTP (publicly-traded partnership) has income in many states besides Idaho.  I need to file state income tax returns in all 40-something states.  The income in each state is below $400.  It seemed unlikely that these states really cared.  He was insistent that New York and California required a filing even for $1 of income by a nonresident,  So I looked up the New York State webpage on this:

If you are a New York State nonresident you must file Form IT-203Nonresident and Part-Year Resident Income Tax Return, if you meet any of the following conditions:

  • You are a nonresident with New York source income and your New York adjusted gross income Federal amount column (Form IT-203, line 31) exceeds your New York standard deduction.
  • You want to claim a refund of any New York State, New York City, or Yonkers income taxes withheld from your pay.
  • You want to claim any of the refundable or carryover credits available.
  • You had a net operating loss for New York State personal income tax purposes for the tax year, without having a similar net operating loss for federal income tax purposes.

The standard deduction:

2024 standard deductions

Standard deductions
Filing statusStandard deduction amount
Single (and can be claimed as a dependent on another taxpayer's federal return)$3,100
Single (and cannot be claimed as a dependent on another taxpayer's federal return)$8,000
Married filing joint return$16,050
Married filing separate return$8,000
Head of household (with qualifying person)$11,200
Qualifying surviving spouse$16,050

When I pointed this out to him, he insisted that he was an expert on this.  Of course, their "experts" have already shown themselves not experts at all.  The goal of this guy was to waste my time and intimidate me into abandoning a claim for less than $1000.


UPDATE: Refund on the way.

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