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Has anyone noticed that TurboTax charges you more for audit defense the more complicated your return is? Last year I had a small side business and they wanted to charge me like $60 extra for MAX compared to when I just had W-2 income the year before!
Yeah, they definitely scale their prices based on how complex your return is. I think they figure if you have a business or investments, you're both more likely to get audited AND more likely to pay higher prices for protection. Classic insurance model - charge more for higher risk. FreeTaxUSA charges the same flat rate for audit assistance regardless of return complexity, which is another reason I switched to them.
As someone who's been through an actual audit, I can offer some perspective on this. I got audited two years ago (random selection, not because of any mistakes) and had TurboTax MAX. The representation was genuinely helpful - I never had to speak to the IRS directly, which was a huge relief since I was pretty anxious about the whole thing. The tax pro handled all the back-and-forth communication and knew exactly what documents to submit and how to present them. That said, my audit was relatively straightforward and only lasted about 6 weeks. The peace of mind was worth it for me, but looking back, I probably could have handled it myself with just guidance rather than full representation. For a first-time filer with a simple return, you're statistically very unlikely to get audited. But if you do decide to get audit defense, consider your personality - if you're someone who would be really stressed about communicating with the IRS directly, TurboTax's representation might be worth the extra cost. If you're comfortable handling it yourself with guidance, FreeTaxUSA's option should be sufficient.
Thank you so much for sharing your actual audit experience! This is exactly the kind of real-world perspective I was hoping to get. It's really reassuring to hear that even though you went through an audit, it was manageable and resolved in a reasonable timeframe. Your point about considering personality type is spot on - I'm definitely someone who would be stressed about dealing with the IRS directly, so having someone handle all the communication would probably be worth the peace of mind for me. Even though my return will be super simple (just one W-2), I think I'm leaning toward TurboTax MAX just so I can sleep at night knowing I won't have to navigate that process myself if something does come up. Did the tax pro keep you updated throughout the process, or did you mostly just wait to hear the final outcome?
The tax pro was actually really good about keeping me in the loop! They sent me updates every week or two, letting me know what the IRS had requested, what documents they were submitting on my behalf, and what the next steps would be. I never felt like I was in the dark about what was happening. They also explained everything in plain English, which was super helpful since I didn't understand a lot of the tax jargon the IRS was using in their correspondence. When the IRS asked for additional documentation about some business expenses I'd claimed, the tax pro walked me through exactly what they needed and why, then handled all the submission and follow-up. Given what you've shared about your anxiety level and wanting to avoid direct IRS contact, I think TurboTax MAX would be a good fit for you. Even with a simple return, having that buffer between you and the IRS can be really valuable for peace of mind. The statistical odds of an audit are low, but if it does happen, you'll be glad you have professional representation handling it for you.
This happened to me last year - WMR said processing but no transcript for almost 3 weeks. Turns out I had checked the wrong box about healthcare coverage, and they were reviewing my return. When my transcript finally appeared, it showed a 570 hold code. I had to call and explain the mistake, and they fixed it right away. Not saying you made a mistake, but sometimes the delay is because they're verifying something specific. Check for any letters in your mailbox from the IRS - they sometimes send notices about verification needs before your transcript updates.
Did you have to provide any additional documentation when you called about the 570 code? According to IRM 21.5.6.4.35.1, the IRS should specify what verification they need in the corresponding notice. I'm wondering if they're following proper procedure since I'm in a similar situation.
Thanks for sharing this! I'm going to double-check my mailbox right away. I've been so focused on the online tools that I didn't even think about physical mail. Really hope I don't have a 570 code when my transcript finally shows up.
I'm in the exact same situation as you! Filed electronically 16 days ago and WMR shows "processing" but my 2023 transcript still shows N/A. After reading through all these responses, I'm feeling much more relieved knowing this is completely normal. It sounds like the transcript system is just the slowest to update in their processing chain. I've been checking obsessively every morning, but now I'll probably just check once a week on Thursday mornings since someone mentioned that's when updates typically happen. Thanks for posting this question - you've helped calm my nerves too!
@Niko Ramsey I m'so glad this thread helped you too! I was literally losing sleep over this same issue. It s'crazy how the IRS systems work independently like that - you d'think in 2025 they d'have better integration between their databases. I m'also going to switch to checking just once a week on Thursday mornings instead of my current obsessive daily checking routine. Hopefully we ll'both see our transcripts appear soon!
Before u switch make sure ur looking at the RIGHT prior year AGI. Its gotta be from the ACTUAL return u filed last year not what u put in turbotax this year
Check your 2023 tax return (the actual filed copy, not what's in TurboTax) for line 11 - that's your AGI from last year. The IRS is super picky about this matching exactly, down to the dollar. If you amended your 2023 return or there were any IRS adjustments after filing, you'd need to use the adjusted AGI amount instead. You can get your actual filed AGI from your tax transcript on the IRS website if you're not sure.
I switched from H&R Block to TurboTax 2 years ago and my refund was actually higher with TurboTax! Not because TurboTax is "better" but because the software asked me some questions my tax preparer never did about my kids' school expenses and some job-related costs. If you're worried about missing something, just go slow and read all the questions carefully. Both H&R Block and TurboTax use the same tax laws - the difference is just in how thorough you are with providing information. One tip: Before you start, gather ALL your documents: W-2s, any 1099s, childcare receipts, any school costs, healthcare info. Having everything ready makes the process much smoother.
This is actually misleading. Tax pros are trained to ask about all possible deductions and credits. If your H&R Block person missed asking about school expenses, they weren't doing their job properly. A good tax professional should get you a better result than DIY software in most cases.
As someone who made the switch from H&R Block to TurboTax three years ago, I can tell you it was one of the best financial decisions I made. With your situation - married filing jointly, 4 dependents, straightforward W-2 income - you're actually in an ideal position for DIY software. Here's what I wish someone had told me before I switched: Your refund amount will be virtually identical between H&R Block and TurboTax because they're both following the same tax code. The real question is whether you're comfortable navigating the software yourself. For a family like yours, you'll mainly be dealing with the Child Tax Credit (up to $2,000 per child under 17), and possibly the Child and Dependent Care Credit if you pay for childcare. TurboTax is excellent at walking you through these family-related credits with simple yes/no questions. My advice? Try TurboTax's free estimation tool first. Input your basic info and see what refund estimate you get. If it's close to your usual $7,000, you'll know the software is capturing your situation correctly. You can always abandon the process if you're not comfortable. That $320 you're saving annually adds up - over 5 years, that's $1,600 back in your pocket for the same result.
Logan Scott
Nothing crushes your soul quite like getting mail from the Treasury that turns out NOT to be money. Been there friend. π₯²
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Connor Gallagher
Ugh, the IRS really knows how to get our hopes up! I got the exact same envelope last week and had the same reaction - saw "Treasury" and "EITC" and thought maybe it was related to my refund. Nope, just a fancy brochure explaining how great the EITC is. The "Just imagine what you could do" line should have been the dead giveaway that it's marketing material. Real refund checks don't come with motivational slogans! π At least now you know what to expect when you open it. Still waiting on your actual refund though? That's the real question!
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