Beware the issue is still happening with the 2024 version of TurboTax as of April 18, 2024. I cannot believe with the discovery of this error a few months ago that TurboTax has not updated their software to include a review that the Ontario 479Aform is completed correctly.
I have been using TurboTax for as long as I can remember since I stopped doing returns by hand, so I am an experienced user. This error is the first time TurboTax has let me down and produced inaccurate calculations. For my daughter‘s families 2024 return returns, she actually had a few thousand dollars more income than her husband and it took me a good half hour or so to figure out how to manipulate the program not to claim this child care, tax relief credit in her husbands return. . I feel sorry for users who buy the software at Staples or Costco who do not have an accounting/business background like I do who try to do their returns themselves. There are many instances in TurboTax where the software uses the proper spouse‘s income for calculations, for example this year, because my son-in-law had less income, the software transferred the childcare expenses that I inputted in my daughter‘s name to his return so the software knew I was preparing joint returns. Before finalizing returns the software goes through the review process and identifies a number of tax saving tips, items that need review, and errors that need to be fixed. The software should include a review of the ON479 A form to ensure, when applicable that both spouses incomes are carried forward into this form.
for my oldest daughter, she was caught up in the Cra review process for 2021, 2022, and 2023 and was assessed over $10,000 in Child care access relief credits not due to her plus another $2400 of arrears interest. What I find strange is that for my youngest daughter, who’s return was prepared with the same software version, the software included her husband‘s income in the 2021 calculation to properly calculate no credit applied to her but for 2022 It did not and she was caught up in the Cra review for that year and has to pay back almost $2000 in credits received plus arrears interest.
so who is at fault? It’s at me for not following through the credit that TurboTax calculated back through the T1 to the On479 to the ON479A forms to double check the programs calculations?. Is it TurboTax’s fault for not including a proper review of this line item and letting taxpayers file an inaccurate tax return? or is it Cra fault for certifying the TurboTax product with this error built-in and further not identifying the error in 2022 while processing the 2021 return and putting a stop to it then thus preventing taxpayers from making the same error when filing in 2022 and 2023 and thus incurring huge amounts that need to be paid back to Cra plus the interest arrears in 2025 when someone at CRA finally figured out there was inaccurate calculations being produced by the TurboTax software?
I think the onus is on TurboTax to honour their 100% accuracy, guarantee and cover the arrears interest. TurboTax is denying they are at fault and blaming it on the user. When you look at their 100% accuracy guarantee fine print, you must make a claim to TurboTax within 30 days of the Cra reassessment. In our case, we just found out about the issue from recent reports in the global mail and other new sources and when I checked, Cra had reassessed my oldest daughter’s returned back on February 7, 2025, more than 30 days ago so I am sure they will use that as an excuse, not to honour their warranty. For my youngest daughter, Cra did not catch up to the error yet and so we voluntarily corrected her 2022 return the other day and when the reassessment was processed, she was still charged interest arrears back to 2022.
this is a real mess and would create great hardships for young families. I am going to seriously rethink using the TurboTax product in future years and I would suggest others do the same. I think taxpayers would be better off going to a professional tax preparation service that uses more sophisticated software. Software these firms use cost them thousands of dollars a year in licensing fees as opposed to the $40 you pay for your TurboTax at Costco and Staples. Is the old adage, you only get what you pay for. Very disappointed in the TurboTax product and how TurboTax is handling this situation and absolving themselves of any responsibility of the hardships they have caused many young Ontario families.
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