But few of those who are eligible use the program, in part because the companies aggressively market paid versions, often misleading customers.
In return, the IRS agrees not to create its own free filing system that would compete with the companies. Like many other tax prep companies, Intuit, the maker of TurboTax, participates in the Free File program with the IRS, under which the industry offers most Americans free tax filing. Get Our Top InvestigationsĮmail address This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. If they’d started from the TurboTax Free File landing page instead of the military page, they would have been able to file for free.
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The Zimmermans used a form to claim a retirement savings credit that TurboTax required a paid upgrade to file. In the commercial version of TurboTax that includes the “military discount,” customers are charged based on the tax forms they file. “Who needs date night this month? At least I filed my taxes.” “I’ve got a kid in braces and I’ve got a kid in preschool $60 is half a week’s worth of groceries,” she said. When Zimmerman went to do her taxes this year, she Googled “tax preparation military free” and, she recalled in an interview, TurboTax was the first link that popped up, promising “free military taxes.” She clicked and came to the site emblazoned with miniature American flags.īut when Zimmerman got to the end of the process, TurboTax charged her $60, even though the family makes under the $66,000 income threshold to file for free.
Liz Zimmerman is a mother of two teenage daughters and a toddler who lives with her husband, a Navy chief petty officer, in Bettendorf, Iowa, just across the river from the Rock Island military facility. Yet some service members who've filed by going to the TurboTax Military landing page told ProPublica they were charged as much as $150 - even though, under a deal with the government, service members making under $66,000 are supposed to be able to file on TurboTax for free.
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In patriotism-drenched promotions, press releases and tweets, TurboTax promotes special deals for military service members, promising to help them file their taxes online for free or at a discount. This story was co-published with The Military Times.
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