Monday, February 23, 2009

Why can't Quicktax (Intuit) be forthcoming?


Why is it so difficult to see if QT Basic is the same as QT Standard except that you don't get the wizards?


For an extra $20 it seems like a waste of money to me. In fact, it is worth purchasing QT Basic to see if it does include all the forms (even the Flow Through/ Limited Partnership T5013 forms) and that you can copy the data from your 2007 returns, so that I can blog about it.

I have never used the wizards and think that they are a waste of time! The descriptions on the Intuit website seem to indicate that there is some sort of FUD that they are trying to perpetuate to get conusumers to buy the $39.99 version. They claim that you need it if you have RSPs.

At least this year they have increased the limit to 8 from 2 in 2007, I guess that they lost too many customers to UFile!

"Quicktax Basic and Quicktax Standard what is the difference" - this is what I searched for and maybe others will. If so, come back to this post and see what I find. To me, I am willing to spend the $19.99 for QT Basic just so that I see for myself. Even if I have to end up buying the one for twice the price!

UPDATE:
I purchased the Basic version and it was just fine for my needs - see the comment below.

6 comments:

QuickTaxGeoff said...

Hi Technology Muse,

Geoff here on the QuickTax team. It sounds like you are using the CD or download version. On the back of each CD, there is feature chart indicating what feature each version includes.

We have a comparable chart for our online offerings here:
http://quicktax.intuit.ca/tax-software/personal-products/online-compare.jsp

QuickTax Basic, while designed for people with simple tax returns, includes every tax form you need to prepare your taxes. You’re correct that it does not have the optimizer tools you’ll find in QuickTax Standard. Standard includes additional tools to maximize RRSP investments, medical expenses, and more.

This info is available on our website as well. On the QuickTax Basic product page, you’ll see we call out “Is QuickTax Basic right for me?” and explain a typical Basic scenario. We do this for each version.


Incidentally, if someone has a very simple return, with only employment or pension income, they can use our Free offering, QuickTax Online Free.

Best,

Geoff

UK Musings said...

Thanks Geoff,

When I wrote the original post I was researching what version of QuickTax I should buy. I was a little bemused that the Basic version was so difficult to find on the Intuit website. It does not feature very prominently on the main page and you almost need to know that it exists before you visit the site (having seen it in the store).

Yes, I went out and purchased the Basic CD version and yes, on the box it does say that it does contain ALL the forms but not the "guidance" that you get with the Standard version. It also tells you that you don't get the functionality of your previous years personal information and unclaimed credits to be imported from a prior return. (this took me less 5 minutes to do after installation - $20 well spent!).

As a bit of a background I seem to remember going through a similar exercise last year (TY07), however, last year the major issue seemed to be the fact that you only allowed 2 returns to be completed - much to the distaste of many people who commented on this fact. I applaud you for addressing this issue. I must admit that last year I did purchase the UFile product as I was also of the opinion that Quicktax needed to do taught a lesson. Something I think that a lot of other people thought! I returned UFile and purchased QT Standard as I was unable to find out on-line whether UFile supported Limited Partnership/Flow Through share purchase deduction reporting (CRA form T5013). As I knew that QT TY06 did contain these forms I felt safer staying with the QT product.

I take issue with the statement that QT Basic is "... designed for people with simple tax returns..." in fact I would say the exact opposite. If you have a complicated return with multiple T5013 forms to fill or multiple Foreign Tax Credits to claim and you were thinking that a more expensive version would be better for you - you will find that this is NOT the case!

The form object (* see below) for the T3, T5, T5013 and probably many other forms that use this object will find that it is limited to 20 instances (*) and if you have more than that you will have to enter them manually. This fact was stated on another forum (I can't remember which at the moment - but I am sure you (Geoff) has read it! - in relation to the Limited Partnership reporting.

As you can see my tax situation is far from simple, I complete returns not only for Unincorporated Business but for a pretty complex foreign and domestic investment portfolio. In a prior year (TY05 - I think) was conned into the purchase of the QT version for investors (presumably now covered by your platinum version). The premise here was that the software allowed you to keep track of your investments (buying and selling etc). However, the statements you get from your broker (on-line or otherwise) prove to be of as much use. You have to transcribe all of that information into the Intuit tracking software - AND THEN it didn't even automatically transfer to the tax return!

TY06 I knew that it was probably the same for the Unincorporated Business version so I gave it a miss.

Finally, the retail box and the website seem to indicate that if you have an RSP you need to use at least the Standard version. Well, I have RSPs and this year (TY08) I am processing a massive Spousal Contribution. How hard is it to enter deductions into the form and check to see whether you and your spouses marginal tax changes in your favour? Sure it is not a "Wizard" but if you are at that level of sophistication you are not likely to be bothering with such devices!

Oh! I forgot medical expenses - it would seem that you would have to be unemployed (or a very low income) in the year of incurring the expenses for any form of optimisation to kick in?

Thank you for replying to my blog - it has given me a chance to state a few other issues I have with the QT product. Having said all that - I still consider it to be the best there is. However, I have not tried many others recently - working on the principle of not fixing something that has not broken! (As I am sure that there will be others who will suggest alternatives)

* A Form Object - A Object Oriented Programming term - something that I'm sure customer service and support would not know anything about.
An instance of an object - is a copy of that object that has its own values for its attributes (elements of a form - in this case)
The issue with the T5013/T5013a is not solved in a manner where you can create your own schedule (as you can do for Foreign Tax Credits) - something that CRA has had no problems with.

QuickTaxGeoff said...

Thanks for the thorough response. We appreciate you taking the time – customer inputs help us make our software and services better, so thank you.

Reading through your post, it’s clear your knowledge of taxes and software is well beyond average. I’m sure you know the majority of Canadians choose software because they want to complete their own taxes and want it done right. If it’s easy, accurate and they’re confident they are getting the best possible return, they’re typically happy with their experience.

I understand your point about Basic. On average, the more (relatively) complex the return, the more support or guidance the typical customer asks for. Many customers tell us they do want and benefit from the additional features. In fact, the RRSP Optimizer was suggested by a customer after we visited him during one of our Follow Me Homes. (We visit customers and observe them using our software, to see what works and what can be better.)

OO languages are over my head! I can only talk about Java and Python if there are no follow-up questions.

Medical expenses: you’re right that they must exceed 3% of your net income, which is a significant amount, but it’s not as uncommon as I wish it was. I have a relative in Northern Ontario who needed significant medical treatment over the course of months in Toronto. While the procedures are covered, his family incurred big travel and living costs. These can be claimed as expenses, and they can be compiled and claimed on a family basis. Those write-offs were critical.

I’ve shared your comments about the T5013/T5013a with our tax analyst.

Best,

Geoff

UK Musings said...

This is why I muse!

On balance, I think the QT product is great! I have used other product in the past and have always returned to QT. While I am sure that other products have evolved over the years I can't really fault the QT program for it's ease of use - I can't really see the need to move to another package.

Some put more stock in customer support, personally I would rather work things out for myself. I have heard some criticism in this area, but I cannot comment. All I can say is that I have never had to ask Intuit for help.

The T5013 issue is one that I cannot think will effect too many people. I know for one that we are not currently interested in investing multiple large sums in schemes that may succeed, even if there is a 100% write-off! However, I think that there are situations where this form is used by investors who are more deeply involved with exploration and new ventures (Limited Partnerships and the like). These tax payers should maybe using the services of a Tax Accountant - not a software package for the general user!

Now only if I could work out why there is all the fuss about TFSAs! Even if you were on the top rate of marginal tax AND you are getting a return of 3%, the tax saving on your $5,000 maximum (TY09) is only going to be in the region of $75 - assuming a marginal of 50%
I think that this is just an attempt by the government to take folks minds off the fact that the money that they have sunk into their RSPs is now worth a lot less than it was.

Sorry to hear about your relative, it goes to show that our situations are all different and I should be thankful that I am not in that position myself. Yet - being self employed I am expecting to have to take care of myself and family - I don't think that the government is going to be much help - I guess that is a penalty of being fiscally responsible, making sure that you have enough to cover medical expenses. In retirement, I hope that there will be enough revenue to offset any expenses against! The way things are going I am not so sure.

Anonymous said...

Hi Technology Muse

I would like to see Quicktax be released for Linux since that is what I use for my book keeping. Or if could at least be compatible with installing in Virtualbox then I wouldn't have to look for alternative tax software

Al

UK Musings said...

Hi back,

I would also like to see a Linux version but I am not holding my breath!

I would think that Quicktax would run just fine in a VirtualBox Windows VM (not that I have tried to run Windows from Linux - just the other way round).

Also, I haven't tried running Quicktax under Wine - but, again, I don't see why it wouldn't work. Still, I have to use Windows for a lot of other things so I use QT from there.