Has the TurboTax Vanguard Offer Ended? Vanguard customers were surprised to learn recently that investment giant has decided to end the popular TurboTax Vanguard discount that dropped the price of the popular tax software by up to $20.
Customers will still be able to import tax documents to TurboTax from their Vanguard account and have tax refunds deposited directly into their Vanguard.com accounts, but the offer for discounted software has ended.
So, why did Vanguard “deduct” TurboTax from its online offers? Let’s look at what both companies said about the situation, and consider other options for getting Turbo Tax at a similar discount.
Similar TurboTax Discount to Vanguard?
Before looking at why Vanguard decided to give TurboTax a “tax cut,” we thought we’d give customers some good news. A number of select tax blogs, including ours, currently offer a similar, semi-exclusive TurboTax discount and “free TurboTax” promotion that Vanguard discontinued. Here’s the offer:
This discount gives all customers (not just Vanguard clients) the opportunity to save up to $20 when they buy TurboTax online directly from their parent company, Intuit. Just click the promotional link above to see today’s discounted price, or view all of our TurboTax offers here.
Tip: If you file your taxes early in the season (before March 15th) you can also get free State efile which saves an extra $40!
Why Did Vanguard End the Turbo Tax Discount?
Vanguard made the breakup official by sending an email out to their clients informing them of the termination of the TurboTax Vanguard discount, saying, “Unfortunately, Vanguard decided to discontinue this TurboTax program.”
You can see that the link to the TurboTax offer has been removed from Vanguard.com:
When asked why they ended the TurboTax Vanguard discount, the company replied that an internal review concluded that Turbo Tax was not core to the company’s business. Vanguard spokeswoman, Katie Hirt, told CNBC that,
“We determined that the TurboTax offer was not core to how we serve our clients, offering low-cost products to help our clients reach investment success,” Hirt said. “We’re not a tax filing company, right?”
I guess that makes sense? However, since Vanguard managed $3T in assets, and everyone has to file taxes, it seemed like a pretty good fit, right? I myself have been a Vanguard client for years, and took advantage of this discount most every year including: 2011, 2012, 2013, 2014, 2015, and 2016!
TurboTax Confirms “Vanguard Breakup” With Their Own Email
TurboTax then sent out an email of their own to customers to notify them of the changes, and refer them to Vanguard customer support for any questions. (Why does this all sound like a a high school breakup to me?)
The email also added, “we’re pleased to offer you a discount of $10 off the TurboTax federal product of your choice” (or the free edition for simple taxes) with a link to their website.
Conclusion: Vanguard Clients Still Can Get a Similar Discount!
I’m still not sure why Vanguard & TurboTax decided to discontinue their offer for free or discounted tax software. However, the good news is that everyone has access to a similar offer, just not directly through Vanguard.com. Since about 80% of people who file their own taxes choose TurboTax software, that’s a lot of people!
So, what that means is that TurboTax is still just as compatible with Vanguard when it comes to working together, you’ll just have to get the discount through a different Turbo Tax affiliate. (Like Mighty Taxes!) Actually, you don’t even have to use TurboTax software to get a discount, as we also have exclusive offers from H&R Block and TaxAct, too!