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The 2017 tax overhaul vastly expanded the number of people who could file simplified tax returns, a boon to millions of Americans.
But the new law directly threatened the lucrative business of Intuit, the maker of TurboTax.
Although the company draws in customers with the promise of a "free" product, its fortunes depend on getting as many customers as possible to pay. It had been regularly charging $100 or more for returns that included itemized deductions for mortgage interest and charitable donations. Under the new law, many wealthier taxpayers would no longer be filing that form, qualifying them to use the company's free software.
Intuit executives came up with a way to preserve the company's hefty profit margins: It began charging more low-income people. Which ones? Individuals with disabilities, the unemployed and people who owe money on student loans, all of whom use tax forms that TurboTax previously included for free.
(Score: 0) by Anonymous Coward on Thursday July 18 2019, @02:57PM
Because Americans fear the IRS, they wouldn't use it in case there was an error in calculation. Turbotax advertises an "audit guarantee", while the IRS will actually check the figures you send and propose changes if they feel there was a mistake. Even if it results in a greater refund. They will also self apply certain credits you may have missed.
Tax forms for the year come out when? If it is January, it will be pretty tight to get all the changes in before people would want to have their taxes completed.
Historically, many Americans treated their tax refund as sort of an interest free holiday savings scheme. That is, they would file for taxes and two months later get a few grand they overpaid during the year and go on a vacation. Turbotax lends this money out in anticipation for their customers. Trump has tried to curb that abuse of the tax system though, getting the withholding tables changed.
How many of the myriad tax forms will attract developer effort? sa, sb, sd: probably. sc: maybe? sk: uuh. Statement of income from marijuana crops on land affected by a federal disaster declaration: forget about it.