How TurboTax Made an Error on My Tax Return and Refunded My TurboTax Fees

TurboTax made an error on my state tax return and then refunded 100% of my TurboTax filing fees for both my federal and state returns.

I finally used an Online Tax Filing Service this year to simplify the process of filing my business and personal income tax return.

Which TurboTax Product Did I Use?

I decided on the TurboTax Home & Business product, as it offered exactly what I needed to file my taxes this year.

The process went smoothly for filing both my federal and state taxes, and I thought everything was fine until a few weeks later when I received a notice from the IRS.

What Was the TurboTax Error?

TurboTax made an error in my Wisconsin state tax return.

While TurboTax correctly calculate Underpayment Interest charges for my federal return, the TurboTax software apparently failed to recognize the necessary Underpayment Interest charges on my state return.

So even though TurboTax indicated that all of my data was 100% correct (I had all green check marks during the verification process), I failed to pay my state tax Underpayment Interest and received a “Notice of Amount Due” letter from the IRS.

It really wasn’t a big deal, as I still had plenty of time to pay before the tax deadline, so I simply paid the amount due to avoid any further issues.

However, TurboTax had made an error, and I felt like I was due a refund per their guaranteed 100% accurate refund policy.

How Did TurboTax Customer Service Handle the Error?

I contacted TurboTax on 2 occasions and received 2 different responses, which turned out to be fortunate for me, as the second occasion resulted in a quick and easy refund.

I contacted TurboTax via their online chat option both times.

First Contact:

The first time I contact TurboTax, I was told that their policy would refund 100% of both my federal and state filing fees if there was a programming error in the TurboTax system, which was a nice bonus, as I originally thought that I would only receive a refund for my state return where the error occurred.

However, I was also told that I would need to provide the customer service representative with all of my business and personal financial data, so that they could recreate the error within the TurboTax system to verify that it was a TurboTax programming error and not a human error on my part.

Once they had verified the error, I would then receive my refund.

Although I understand the necessity to verify issues before handing out refunds, this wasn’t exactly an attractive option for me, as it would have taken lots of time to go over the information with them again.

I responded that I would contact them again during the following week when I had more time to go over my information and resolve the situation.

Second Contact:

I followed up with TurboTax customer service again the following week.

I was already logged in to my TurboTax account and ready to verify my information along with the TurboTax mistake.

I once again explained the error that had occurred to the new customer service representative, asked for a refund, and indicated that I was ready to review my information if necessary.

They asked for my TurboTax order number and then responded that they would provide me with a full refund.

They followed up with a refund verification code, and my problem was resolved.

What Made TurboTax Refund My Money?

I’m not quite sure what the difference might have been between the first and second customer service experience.

By the second time around, they may have already recognized that a system error was occurring in my state and were just automatically issuing refunds to complaining customers who qualified.

Their customer service systems were extremely busy the second time as well, so maybe to avoid further delays, they were told to refund all complaints that appeared legitimate in nature based on certain issues.

I don’t really know the answer as to why no verification was necessary the second time I contacted customer service, but I basically received a refund just for saying that I had an issue.

Would I Use TurboTax Again?

I would definitely use TurboTax again.

The process of filing my taxes online was extremely simple, and I saved a ton of time compared to filing my returns by hand in the past.

Being able to go back and make a small adjustment for some previously undiscovered income like a gift card reward without having to recalculate all of my other data by hand is an incredible benefit.

I would hope that my particular Underpayment Interest issue in the TurboTax program will be resolved by next year, but I’m making quarterly tax payments this year anyway, so that shouldn’t be an issue either way.

Plus, I ended up using TurboTax for free in the end, as they refunded 100% of my money due to their programming error, although I’ll be more than happy to pay for their service again next year.

Did You Have TurboTax Errors or Other Online Tax Filing Service Mistakes?

If you’ve ever had an error when filing your taxes with TurboTax or another online tax service provider, please feel free to share your experiences in our comments section below this article.

Comments

  1. P.Anderson says

    Problem with Turbo Tax inputting my tax refund from Wisconsin. I put it on line 10 of Federal and Turbo Tax puts it on line 6 and 42. of the Wisconsin tax form. Wisconsin Dept. of Revenue says it should not go on line 42. Who is right?

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