Demystifying the First Home Savings Account in TurboTax

The FHSA took Canada by surprise

The First Home Savings Account (FHSA) was introduced on April 1, 2023 to help Canadians save for their first home. At the time, the government was still finalizing the details about this account. So I knew just as much information as the tax experts at Turbotax.

Challenge

I joined the TurboTax team to tackle the challenge of incorporating FHSA in the TurboTax flow, aimed to help Canadians feel more confident about filing their taxes related to FHSA.

Impact

Spearheaded the end-to-end design of FHSA, and implemented 20+ high-impact opportunities for FHSA, accelerating product development timelines by 6 months.

Redesigned the RRSP flow to improve navigation, boost tax education and reduce user input, garnering a perceived 15% reduction in tax-related inquiries.

Understanding FHSA

February 2023, the government was still finalizing the details of the FHSA. Uncertainty filled the design process. I checked competitors' sites daily to ensure we had the most up-to-date information at all times. The key insights include:

Design Principles

Correctness was paramount in this project to make sure users don't accidentally commit tax fraud. It was also crucial to help users take full advantage of this account so they could save as much taxes as possible.

How might we simplify the tax filing process related to FHSA for our customers?

I conducted an outside-in research by analyzing adjacent industries that excel at simplifying complex information. Additionally, I explored companies proficient in comparing similar products to understand how we can help customers distinguish between all types of savings accounts.

Solution Highlights

The Placement of FHSA

The Current Flow

Currently, users can specify their registered savings accounts in step 4. If they have an RRSP (or other registered savings accounts), they'll be prompted in step 7 to enter corresponding slips.

First, we tried adding FHSA into the RRSP flow

Roadblock #1

If the user does not have an RRSP but has a FHSA, the RRSP section won't appear in the tax flow, preventing them from entering FHSA-related information and potential committing tax fraud.

Then, we tried making FHSA its own section.

Roadblock #2

This approach allows the user to file for FHSA independent of an RRSP. However, it introduces redundant screens (intro and summary), adding to the already lengthy tax-filing process!

Lastly, we tried creating a new section altogether

We renamed the RRSP section to RSP (Registered Savings Plan) which includes RRSP, PRPP, and FHSA, and each subsection is shown if the user indicated that they have these registered savings account in step 4.

And if the user has no Registered Savings Plans?

The entire RSP section would be hidden, effectively removing unnecessary steps for users with simpler tax situations. This approach is sustainable when new savings accounts are introduced in the future!

Designing for Delight

Using the RRSP design for FHSA

Since contributions and withdrawals from an FHSA impact one's taxable income in a similar way to an RRSP, the RRSP screens can be reused for FHSA to create an unified experience across TurboTax.

Personalizing the experience

The intro screen now shows a list of registered savings account tailored to the user's unique tax situation. In addition, we began to utilize icons to add delight to the tax filing process.

Providing helpful guidance when simplifying form

Deduction limits are now directly imported from an earlier step from the CRA. The 3-step process to correct the value is now simplified to one step. In addition, there are now numerous ways to help users find this value.

Creating visual divide to improve readability

The RRSP summary screen has been one of the major point of confusion. Visual separation between each RRSP slip makes skimming the dense content easier. Consulted with the design team to narrow down to two designs. Team critics were a crucial part of this design refinement.

Next Steps

Challenges & Learnings

I want to express my gratitude for Intuit's TurboTax design team for the incredible support, trust, and collaboration throughout the FHSA project. Your guidance have been invaluable in shaping the direction of this project. Thank you for helping me achieve success in my short but memorable role.