Intuit now employs thousands of tax preparers with its TurboTax Live program and its recently introduced TurboTax Full Service offering. With the latter, Intuit expects to offer services to taxpayers, although there are some limits on the complexity of returns that will be processed.Spokesperson Debra Hammer did not have figures on the number of tax preparers who have been hired by Intuit, but said it was in the thousands. Intuit also employs bookkeepers in delivering its QuickBooks Live bookkeeping service.
Intuit also will be seeking to make TurboTax customers of members of Credit Karma, which it recently purchased.
“We plan to provide TurboTax Live to Credit Karma members who are overpaying for pros and tax stores,” Intuit CEO Sasan Goodarzi said during the recent presentation regarding Intuit’s updating its financial guidance following the completion of the Credit Karma deal.
Intuit has offered TurboTax Live for several years. That program gives customers the ability to reach out to preparers via a one-way video link for specific questions.
With Full Service, which began testing more than 18 months ago, taxpayers will scan documents and turn over preparation to preparers, who are professional preparers with flexible schedules who are employed by Intuit. The two services mean Intuit is now a major employer of preparers.
“I would think we are significant in this market,” Hammer said.
Goodarzi said that 60 percent of Credit Karma members do not use TurboTax. Most use the services of a tax professional or tax store.
The acquired company had marketed Credit Karma Tax, a free product. To gain Justice Department Approval of the deal, Intuit had to agree to divest that tax application, which was sold to Square for $50 million.
Full service is not available for taxpayers with more than any of the following: two Sole Proprietorships (Sch C), two K-1s;100 cryptocurrency transactions, two rentals (Sch E), one farm (Sch F or Form 4835) or two states. It is also not available to taxpayers with foreign Investments of more than $50,000 or Form 8938 (entire return cannot be completed).
Customers all of TurboTax products will be able to upgrade to Full Service. TurboTax Basic customers, who pay nothing for their software, can add full service for $100; Deluxe customers, who pay $90, add full service for $80; Premier purchases who pay $140 can add full service for $90; and Self-employed customers, who pay $170, can add full service for another $90.
