TLP: Government Workers And TurboTax Still A Winning Combination

Wednesday, April 07, 2010 , , , 1 Comments

tax mistakes irs
As if retirees don't have enough to bitch about ...


A flaw in the most recent version of TurboTax, the nation’s most popular tax-preparation software, may have caused thousands of retired federal employees to overstate their medical deductions and unwittingly underpay the Internal Revenue Service, according to federal officials.

The program error affects federal retirees using versions of the 1099-R form who have health insurance premiums paid by their pension administrators. It can lead filers to inadvertently deduct the same expenses twice, leading to a miscalculation of the tax owed and an underpayment of hundreds of dollars on the typical return.

Officials for Intuit, the Mountain View, Calif., company that produces the program, were alerted to the problem last week, after a retired federal worker from Virginia noticed that TurboTax had automatically double-counted his medical insurance premiums as deductions.

When questioned about the problem by a reporter last week, Intuit said it had begun working with the I.R.S. to revise its computer-prompted instructions on TurboTax and prevent such errors in the future.

This time, at least, it was TurboTax's fault. Sometimes, it's user error.

The Lazy Paperboy

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.


Anonymous said...

9 out of 10 Treasury Secretaries recommend TurboTax.