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* Rep. Janet Yang Rohr filed HB5919 yesterday…
Amends the Illinois Income Tax Act. Provides that it is unlawful for an income tax return preparer or a software company to charge a separate fee for the electronic filing of returns under the Act. Provides that it is unlawful for a software company to offer for sale a version of its tax software that charges a separate fee for the electronic filing of returns under the Act and a version of the same tax software that does not. Sets forth penalties for violations of the provisions of the amendatory Act.
TurboTax charges a $25 e-filing fee for each personal state return. Residents of New York are exempt from the fee due to a law similar to Rep. Yang Rohr’s proposal.
* NBC reported in February that online filing through companies like TurboTax is getting more expensive…
H&R Block’s desktop software options this year range from $25 for preparing “basic” returns to $75 for its “premium” offerings, like those capable of handling taxes on rental property. Those two are up by $5 and $10, respectively, since last year. Later this tax filing season, prices across all of its plans will rise by another $10. […]
TurboTax has kept its pricing unchanged from a year ago, but that will only last a few more weeks.
Its desktop software tools, which range from $40 for filing “basic” returns to $105 for “premier” offerings, remain above H&R Block’s pricing. And they’ll also be going up by $10 later this tax season — a common practice that both companies typically advertise prominently, looking to lure customers to file early.
Both H&R Block and TurboTax offer free online filing services for simple returns. But itemized deductions and slightly more complicated tax situations often require paying for upgraded features. And as many tax filers are reminded each year, both companies’ “basic” software options cover only federal taxes, with state filings tacking on another $40 apiece.
Thoughts?
posted by Isabel Miller
Friday, Dec 6, 24 @ 9:54 am
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My main thought is everyone needs to do a better job advertising that you can already file your state tax return for free on IDOR’s website!
Comment by Sam Naik Friday, Dec 6, 24 @ 9:55 am
As a (not-tax) accountant, support it 100%.
TurboTax and their ilk actively lobby governments to maintain a complicated income tax code and then charge through the nose for their services.
Comment by The Dude Abides Friday, Dec 6, 24 @ 9:57 am
This is why I always use the states efile system. I don’t think TurboTax even gets it state taxes right half the time anyway.
Comment by leo21 Friday, Dec 6, 24 @ 10:01 am
Probably a good bill in that it will save a lot of people 25 bucks. But yes, use the online/efile unless you have a very complicated financial life.
Comment by Friendly Bob Adams Friday, Dec 6, 24 @ 10:05 am
Would be nice for Illinois to get on board with the IRS’ Direct File.
https://www.irs.gov/filing/irs-direct-file-for-free
Comment by Precinct Captain Friday, Dec 6, 24 @ 10:06 am
I also use the IDOR system. No need to pay to hand my data to any more corporations than I already do. I prefer to reduce my exposure to data breaches and marketing.
FreeTaxUSA is a great option for free federal e-filing.
Comment by thechampaignlife Friday, Dec 6, 24 @ 10:06 am
The IRS needs to have their own tax filing software.
Comment by Siualum Friday, Dec 6, 24 @ 10:14 am
=TurboTax charges a $25 e-filing fee for each personal state return=
Basically price fixing by an activist legislator-
If consumers don’t want to pay the fee they can always paper file or look for cheaper services. Turbotax is a premium product that has tons of slick features (it stores and auto-populates all of your past filing info as an example). If the ILGA imposes this mandate Intuit will just raise the price for the software package -
Comment by Donnie Elgin Friday, Dec 6, 24 @ 10:16 am
On all those who say you can easily use IDOR’s system. This is just not true. If you use a product like TurboTax or HR block to enter all your information and file your federal returns for free, you cannot export that information into IDOR’s system. You need to manually reenter all the information.
Now, if IDOR wants to cut out the TurboTax market, they should make a way to easily import your information from your federal returns.
Also, if you are using TurboTax, you can easily just print your returns from TurboTax and mail it in or drop it off at an IDOR office.
Comment by Unionman Friday, Dec 6, 24 @ 10:18 am
Simply use Free Tax USA and the total cost is around $30 for preparation and filing.
Comment by Northern Stargazer Friday, Dec 6, 24 @ 10:20 am
A better bill imo would be to prevent these companies from charging double or triple their fees to individuals that choose to pay with their return. This would save the states most vulnerable residents significant money.
Comment by Northern Stargazer Friday, Dec 6, 24 @ 10:25 am
==Basically price fixing by an activist legislator==
LOL’ing at the pejorative use of “activist legislator.” I guess you prefer your legislators to be steadfast defenders of the status quo?
Comment by charles in charge Friday, Dec 6, 24 @ 10:44 am
Waste of time. Nobody will “save” $25. They will inrease other fees to make up for losing this one. It’s worth $25 to me to not have to enter all the info twice and maybe make a mistake.
Comment by Captain Obvious Friday, Dec 6, 24 @ 10:44 am
I gave up the tax prep grifters awhile back and use IRS Free File now.
Now I have money to buy The Onion newspaper.
Hooray!
I wonder, are there any honest people in this country?
Comment by ItsJustMe Friday, Dec 6, 24 @ 10:44 am
===The IRS needs to have their own tax filing software.===
Preventing this was one of the opening salvo’s of Gingrich’s “Contract on America” in 1995.
Comment by Anyone Remember Friday, Dec 6, 24 @ 10:48 am
= activist legislator-=
Yet you seem to like the current “activist” USSC.
lol.
Comment by JS Mill Friday, Dec 6, 24 @ 10:49 am
So, as a helpful father, I did my kids return for him last year.
He was a resident (since different states define it differently) of three states. It was cheaper to buy another version of the software to get the ‘free state’ than just using my TurboTax copy.
Somewhat related, Illinois considered my daughter a resident since she renewed her license here, then had a lease and professional licenses in Kansas (and earned income in Kansas, but not Illinois). So, today’s pro-tip, have your kid get a new DL as soon as possible if they are primarily in another state.
Comment by OneMan Friday, Dec 6, 24 @ 10:50 am
==FreeTaxUSA is a great option for free federal e-filing.==
This is what I use for my federal return.
=On all those who say you can easily use IDOR’s system. This is just not true. If you use a product like TurboTax or HR block to enter all your information and file your federal returns for free, you cannot export that information into IDOR’s system. You need to manually reenter all the information.=
This is why I pay $15-$20 to FreeTaxUSA to file my state return. I spent way too much time trying to figure out how to enter my state tax return on IDOR website. Could never get it right. Gave up and now spend the $15-$20.
I have a fairly simple return, a few W-2s, a few 1099s. But I felt it was clear as mud as how to get all that information over to the state’s website.
I do think the entire tax system should be way easier to figure out and file. Start with the fed’s and go from there. I wonder if AI or ChatGTP will be able to file my taxes for me?
Comment by Cool Papa Bell Friday, Dec 6, 24 @ 10:54 am
+1 to Cool Papa Bell, it is a pain to use turbo tax and then try to use it for the state. I think I will look into your option of freetaxusa
Comment by clec dcn Friday, Dec 6, 24 @ 11:07 am
It’s comical to me that some here seem the need to look out for Turbo Tax. You know, the Turbo Tax that promised “free, free, free” and then bait and switched folks into having to pay. Intuit got sued and had to pay out $141,000,000 back to the consumers.
When will the “activist legislators” start looking out for multi-billion corporations. Looking at the record high corporate profits and stock market, they sure do need all the help they can get. /s
Comment by Henry Francis Friday, Dec 6, 24 @ 11:10 am
The state and federal government needs to develop on-line software that is already filled out with whatever information they already have. (I think they are working on this, but I’m expect the Trump admin will kill it.) The taxpayer should be able to confirm or edit and submit. If you don’t trust the government, you can pay a for-profit to do the work.
Until then, I will use the Free Fillable Forms website for my federal taxes (it does most, but not all of the math) and the IDOR site (which gets better every year).
Comment by Pot calling kettle Friday, Dec 6, 24 @ 11:38 am
This is a good law. This industry really shouldn’t exist and has spent many millions on lobbying in order to make it so that the United States doesn’t do what occurs in most countries where thanks to modern reporting requirements the government essentially doesn’t require people to file an annual return unless they meet criteria that would prevent the reporting of their information.
===Basically price fixing by an activist legislator-===
===If the ILGA imposes this mandate Intuit will just raise the price for the software package===
Donnie, Donnie, Donnie. You’re over here both advancing the concept of market pricing while also failing to fully believe in market pricing. “Consumers can buy a different product” is fine, but TurboTax isn’t exactly putting a big sticker on the box that says “You will have to pay another $25 to file your state return, and we’re not going to ask you to pay that until we’ve already generated the return and then we’re going to require you to delete it after already wasting your time because we’re an awful company with deceptive practices” or something like that.
If you want to side with rent seeking companies - fine. But how much more have New Yorkers been paying for turbo tax compared to Illinoisans since they’ve become exempt from this fee?
Intuit is trading at almost $650 a share and more than $16 billion in revenue with a 181 billion dollar market capitalization.
They don’t have to package the state return software with the federal return software, but between you and me when I buy a box that says “file your federal and state taxes” on it and then find out that I have to pay an extra fee to use the software I already paid for, that company is demanding regulation.
Maybe a company that’s worth billions doesn’t have to screw their customers.
You should be proud that our state was able to pass this law considering how good of a job Intuit has done and preventing the federal government from treating filing returns as a public good like Barack Obama ran on “back in the day.”
Comment by Candy Dogood Friday, Dec 6, 24 @ 12:06 pm
“If the ILGA imposes this mandate Intuit will just raise the price for the software package”
You mean put the actual cost of using the product on the package?
Who cares?
– MrJM
Comment by @misterjayem Friday, Dec 6, 24 @ 12:38 pm
=You should be proud that our state was able to pass this law =
This proposal is only a bill - it has not been enacted.
Comment by Donnie Elgin Friday, Dec 6, 24 @ 1:08 pm
==You mean put the actual cost of using the product on the package?==
Amen. Stop nickeling and diming me. Just charge me for a product and get on with it.
Comment by Demoralized Friday, Dec 6, 24 @ 1:25 pm
=You mean put the actual cost of using the product on the package?=
Putting the total cost of the product on the box could prompt consumers to look for less expensive alternatives before buying TurboTax. I’m sure the company has reached this conclusion which is why they favor a tactic that feels a lot like bait and switch. Calling it out is a good thing.
Comment by Pundent Friday, Dec 6, 24 @ 1:39 pm
Literally every other developed country has managed to simplify and solve this process except the US. Just like healthcare, basic services and intentionally kept complex just to give middle men an excuse to suck profit out.
Comment by Homebody Friday, Dec 6, 24 @ 1:46 pm
It wasn’t that long ago that H&R Block got in trouble with its own taxes and the US government. So I never trusted them again after that.
Comment by Give Us Barabbas Friday, Dec 6, 24 @ 1:50 pm
People are still buying physical software media? There’s no extra e-file charge using the cloud version.
Comment by harp5339 Friday, Dec 6, 24 @ 2:18 pm