TurboTax:Important Information About Your 2007 Tax Return

So I have been doing an intermittent series on using technology to improve your life. Here’s a case where relying on technology could seriously mess you up…

I received a free CD from TurboTax in the mail with their latest software. Pretty cool idea: it’s free until I decide to file. I used TT last year, so I figured that I would go ahead and use it as I wanted to get started on my taxes early to do some planning for our finances. So I start working through it and filled in my income, investments, etc. It then takes me to the “Federal Review” and tells me I owe a freaking large amount of money! I am trying to figure out what happened when I realize that I never entered in any of my deductions! We have several big deductions include mortgage interest and charitable giving, so I’m figuring I somehow missed it. After spending an hour or so looking for it I cannot find it! I finally gave up and sent an email to TurboTax support.

Today (a week later) I got the email shown below with the subject line shown at the top of this blog post. I don’t know how widespread this was, but this was a huge blunder by a very well-known company.

Dear David Bourgeois:We have important information about your 2007 tax return.The TurboTax Home & Business software you installed did not include some of the functionality designed to help you with your deductions and credits. We’ve corrected the issue, but you must update the software next time you use it in order to ensure you claim all of the deductions and credits you deserve.If you have not yet finished and filed your Federal return, please update your software and complete the Deductions and Credits section: Step 1. Go to: (specific URL here) Step 2. Follow the instructions for a One-click Update. Step 3. Click on the Deductions and Credits tab: Step 4. Complete the Deductions and Credits section and finish your return. If you have already filed, please call (888) 777-4160 at your earliest convenience. We’ll walk you through the process of amending your return, if necessary, and answer any other questions you may have. We are committed to helping ensure that you receive every deduction to which you’re entitled. We apologize for any inconvenience this may have caused. Sincerely, The TurboTax Team

Did anyone get caught by this and actually file? This could be a huge black eye for Intuit!

Tags: deductions, turbo tax