TurboTax
Encyclopedia
TurboTax is an America
n tax preparation
software package developed by Michael A. Chipman of Chipsoft in the mid-1980s. TurboTax became an Intuit product as a result of the 1993 acquisition of its creator, San Diego-based Chipsoft. Chipsoft, now known as Intuit Consumer Tax Group, is still based in San Diego, having moved into a new office complex in 2007. Intuit Corporation is headquartered in Mountain View, California
.
TurboTax for the Mac was originally named MacinTax, and was developed by SoftViewhttp://books.google.com/books?id=mi8EAAAAMBAJ&pg=PA51&lpg=PA51&dq=softview+macintax&source=bl&ots=zjCRaAxsh9&sig=d1LlsFV60aX8iL8VansPv2kLEAw&hl=en&ei=bLnWTYqMEYjrgQeokYCtBw&sa=X&oi=book_result&ct=result&resnum=2&ved=0CDkQ6AEwAQ#v=onepage&q=softview%20macintax&f=false SoftView was in turn purchased by ChipSofthttp://www.highbeam.com/doc/1G1-11962385.html
TurboTax is one of the most popular income tax preparation software packages in the United States, with only one main competitor, TaxCut.
step-by-step. The TurboTax software includes the ability to purchase audit defense services from TaxResources, Inc
.
Typically, TurboTax federal software is released late in the year and the state software is released mid-January to mid-February. TurboTax normally releases its new versions as soon as the IRS completes revisions to the forms and approves the TurboTax versions, usually late in the tax year. The process is similar for states that collect income taxes.
In 2003, Intuit faced vocal criticism for its TurboTax activation scheme. The company responded by removing the product activation
scheme from its product. In 2005 TurboTax extended its offering by allowing any taxpayer to use a basic version of its federal product for free as part of the Free File Alliance
. By 2006 that offer has been limited to free federal online tax preparation and e-file for taxpayers whose adjusted gross income
is $28,500 or less (or $52,000 for those in the military) and those 50 or under. TurboTax has received a number of complaints regarding its advertising of the free version. For filers who use this basic version of the software, federal filing is free. However, state tax filing is not free, and the cost of using TurboTax to file state returns is not presented to the user until they've already completed entering their information for federal returns.
In 2008, Intuit raised the price of TurboTax for desktop customers by $15 and included a free e-filing for the first return prepared. The company's new "Pay Per Return" policy was criticized for adding a $9.95 fee to print or e-file each additional return after the first, including returns prepared for members of the same household. On December 12, 2008 the company announced that it had rescinded the new policy.
On January 21, 2009, TurboTax received considerable public attention at the Senate confirmation hearing of Timothy F. Geithner
to be the United States
Secretary of Treasury. Geithner had testified that he used TurboTax to prepare his tax returns for the years 2001 to 2004 but had incorrectly handled the self-employment taxes due as a result of his being employed by the International Monetary Fund
. Geithner made it clear that he took responsibility for the error, which was discovered in a subsequent IRS audit, and did not blame TurboTax. Geithner paid $42,702 in back taxes. Intuit responded by releasing a statement saying "TurboTax, and all software and in-person tax preparation services, base their calculations on the information users provide when completing their returns."
step-by-step. ImpôtRapide is the French version of TurboTax in Canada, used by residents of the province of Québec.
The Canadian online version of TurboTax is named TurboTax Online, or ImpôtRapide for the French language version.
QuickTax has been renamed to TurboTax as of the 2010 tax year.
that tracked whether it had previously been installed
on a computer by writing to sector 33 on the hard drive.
This allowed it to track if was on a computer previously,
even through reinstalling the operating system.
This also caused it to conflict with some boot loaders
that store data there, rendering those computers unbootable.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
n tax preparation
Tax preparation
Tax preparation is the process of preparing tax returns, often income tax returns, often for a person other than the taxpayer, and generally for compensation. Tax preparation may be done by the taxpayer with or without the help of tax preparation software and online services...
software package developed by Michael A. Chipman of Chipsoft in the mid-1980s. TurboTax became an Intuit product as a result of the 1993 acquisition of its creator, San Diego-based Chipsoft. Chipsoft, now known as Intuit Consumer Tax Group, is still based in San Diego, having moved into a new office complex in 2007. Intuit Corporation is headquartered in Mountain View, California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
.
TurboTax for the Mac was originally named MacinTax, and was developed by SoftViewhttp://books.google.com/books?id=mi8EAAAAMBAJ&pg=PA51&lpg=PA51&dq=softview+macintax&source=bl&ots=zjCRaAxsh9&sig=d1LlsFV60aX8iL8VansPv2kLEAw&hl=en&ei=bLnWTYqMEYjrgQeokYCtBw&sa=X&oi=book_result&ct=result&resnum=2&ved=0CDkQ6AEwAQ#v=onepage&q=softview%20macintax&f=false SoftView was in turn purchased by ChipSofthttp://www.highbeam.com/doc/1G1-11962385.html
TurboTax is one of the most popular income tax preparation software packages in the United States, with only one main competitor, TaxCut.
Overview
There are a number of different versions, including TurboTax Deluxe, TurboTax Premier, etc. TurboTax is available for both federal and state income tax returns. The software is designed to guide users through their tax returnsTax return (United States)
Tax returns in the United States are reports filed with the Internal Revenue Service or with the state or local tax collection agency containing information used to calculate income tax or other taxes...
step-by-step. The TurboTax software includes the ability to purchase audit defense services from TaxResources, Inc
TaxResources, Inc
TaxResources, Inc. is an American tax firm specializing in income tax audit representation. TaxResources was founded in 1988. The firm became the exclusive provider of audit defense for Intuit Corporation’s TurboTax Software in 1998. TaxResources is the largest audit defense firm in the country...
.
Typically, TurboTax federal software is released late in the year and the state software is released mid-January to mid-February. TurboTax normally releases its new versions as soon as the IRS completes revisions to the forms and approves the TurboTax versions, usually late in the tax year. The process is similar for states that collect income taxes.
In 2003, Intuit faced vocal criticism for its TurboTax activation scheme. The company responded by removing the product activation
Product activation
Product activation is a license validation procedure required by some proprietary computer software programs. In one form, product activation refers to a method invented by Ric Richardson and patented by Uniloc where a software application hashes hardware serial numbers and an ID number specific...
scheme from its product. In 2005 TurboTax extended its offering by allowing any taxpayer to use a basic version of its federal product for free as part of the Free File Alliance
Free File Alliance
The Free File Alliance is a group of tax preparation companies that have partnered with the Internal Revenue Service to provide free electronic tax filing services to U.S tax payers meeting certain guidelines...
. By 2006 that offer has been limited to free federal online tax preparation and e-file for taxpayers whose adjusted gross income
Adjusted Gross Income
For United States individual income tax, taxable income is adjusted gross income less allowances for personal exemptions and itemized deductions. Adjusted gross income is total gross income minus specific items laid out in the tax code...
is $28,500 or less (or $52,000 for those in the military) and those 50 or under. TurboTax has received a number of complaints regarding its advertising of the free version. For filers who use this basic version of the software, federal filing is free. However, state tax filing is not free, and the cost of using TurboTax to file state returns is not presented to the user until they've already completed entering their information for federal returns.
In 2008, Intuit raised the price of TurboTax for desktop customers by $15 and included a free e-filing for the first return prepared. The company's new "Pay Per Return" policy was criticized for adding a $9.95 fee to print or e-file each additional return after the first, including returns prepared for members of the same household. On December 12, 2008 the company announced that it had rescinded the new policy.
On January 21, 2009, TurboTax received considerable public attention at the Senate confirmation hearing of Timothy F. Geithner
Timothy F. Geithner
Timothy Franz Geithner is an American economist, central banker, and civil servant. He is the 75th and current United States Secretary of the Treasury, serving under President Barack Obama...
to be the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
Secretary of Treasury. Geithner had testified that he used TurboTax to prepare his tax returns for the years 2001 to 2004 but had incorrectly handled the self-employment taxes due as a result of his being employed by the International Monetary Fund
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
. Geithner made it clear that he took responsibility for the error, which was discovered in a subsequent IRS audit, and did not blame TurboTax. Geithner paid $42,702 in back taxes. Intuit responded by releasing a statement saying "TurboTax, and all software and in-person tax preparation services, base their calculations on the information users provide when completing their returns."
TurboTax Estimated Taxes
TurboTax Estimated Taxes is an online estimated income tax payment calculating and filing service. For taxpayers who file quarterly estimated payments, it provides payment calculators and allows e-filing of estimated tax payments. Automatic deadline reminders help users avoid late payments. The record of past payments can be automatically imported into TurboTax at tax-filing time, which saves the trouble of typing in that history.International versions
The only other country's tax system Intuit addresses is Canada, with a product also named TurboTax. Previously called QuickTax, the software is designed to guide users through their tax returnTax return (Canada)
Normally, Canadian Individual tax returns for any specific year must be filedby April 30 of the following year. There is no provision for generally extending this deadline, but there are a few exceptions....
step-by-step. ImpôtRapide is the French version of TurboTax in Canada, used by residents of the province of Québec.
The Canadian online version of TurboTax is named TurboTax Online, or ImpôtRapide for the French language version.
QuickTax has been renamed to TurboTax as of the 2010 tax year.
Writing to the boot track
The 2003 version of the TurboTax software contained Digital rights managementDigital rights management
Digital rights management is a class of access control technologies that are used by hardware manufacturers, publishers, copyright holders and individuals with the intent to limit the use of digital content and devices after sale. DRM is any technology that inhibits uses of digital content that...
that tracked whether it had previously been installed
on a computer by writing to sector 33 on the hard drive.
This allowed it to track if was on a computer previously,
even through reinstalling the operating system.
This also caused it to conflict with some boot loaders
that store data there, rendering those computers unbootable.