What is the TurboTax free scandal? (2024)

What is the TurboTax free scandal?

The Federal Trade Commission has issued an Opinion and Final Order that Intuit Inc., the maker of the popular TurboTax tax filing software, engaged in deceptive advertising in violation of the FTC Act and deceived consumers when it ran ads for “free” tax products and services for which many consumers were ineligible.

What is the controversy with TurboTax free?

The FTC said that TurboTax's “file FREE” claims misled people because most people didn't qualify for “$0 to file.” Except they only found that out well after they spent a lot of time putting all their info into the system. As a result, the FTC ordered Intuit to stop making false “free” claims.

What happened to TurboTax free edition?

On Monday, the Federal Trade Commission said that Intuit, the company that makes the tax-prep software TurboTax, can no longer market its services as "free," since that's not exactly accurate. Most customers find out they aren't eligible to use the free product Intuit offers and must upgrade to a paid version.

What is the TurboTax scandal?

In an opinion and final order issued Monday, the Federal Trade Commission ruled that Intuit engaged in deceptive practices by running ads claiming consumers could file their taxes for free using TurboTax though many people did not qualify for such free offerings.

Did TurboTax get sued for hiding free filing services?

The FTC first sued Intuit in March 2022 over the ads pitching free TurboTax products. The commission said about two-thirds of tax filers in 2020 would have been ineligible for the company's free offerings, such as freelance workers who received 1099 forms and people who earned farm income.

How can I actually use TurboTax for free?

If you have a Form 1040 return and are claiming limited credits only, you can file for free yourself with TurboTax Free Edition or TurboTax Live Assisted Basic (if available), or you can file with TurboTax Full Service Basic at the listed price.

Why is TurboTax making me pay for Deluxe?

If we detect that your tax situation requires expanded coverage, like deductions for owning a home, unemployment income, or self-employment income, we'll prompt you to upgrade to a version that supports the forms you need so that we can maximize your tax deductions and ensure you file an accurate return.

Why is TurboTax charging me $39?

How do I remove Pay With My Refund fees in TurboTax Online and change my payment method? If you select Pay with Refund to pay your Turbotax Fees, there's a $39 processing fee charged by the third-party bank that handles the transaction.

Should I pay for TurboTax?

Bottom line. While TurboTax provides an easy-to-use experience with intuitive tools, it can be expensive for those who want — or need — to use its more advanced versions. If you want to take the stress out of tax filing season, however, it may be well worth the cost.

Is Free tax USA legit?

FreeTaxUSA isn't quite as free as Cash App Taxes, but it still offers an excellent value compared with many competitors. It can be a good choice if you don't want to pay the higher cost of rivals like TurboTax and TaxAct but still may need professional assistance, as long as you don't mind forgoing some features.

Is TurboTax really free 2024?

Roughly 37% of taxpayers are eligible. If you have a Form 1040 return and are claiming limited credits only, you can file for free yourself with TurboTax Free Edition, or you can file with TurboTax Live Assisted Basic or TurboTax Full Service at the listed price.

What is TurboTax being investigated?

The Federal Trade Commission ruled in a final order and opinion Monday that TurboTax, the popular tax filing software, engaged in deceptive advertising and banned the company from advertising its services for free unless it is free for all customers.

Is TurboTax being investigated by the government?

The Federal Trade Commission has ordered the maker of TurboTax to stop what it called years of widespread deceptive advertising for “free” tax-filing software. The order, released Monday, was accompanied by a 93-page opinion that harshly criticized Intuit, the Silicon Valley company behind TurboTax.

Why is the IRS investigating TurboTax?

The Federal Trade Commission has issued an Opinion and Final Order that Intuit Inc., the maker of the popular TurboTax tax filing software, engaged in deceptive advertising in violation of the FTC Act and deceived consumers when it ran ads for “free” tax products and services for which many consumers were ineligible.

Why not to file with TurboTax?

TurboTax paid some 4.4 million customers after it emerged that the company had tricked consumers into paying for tax services that should have been free. TurboTax levies charges on those who file tax returns with unemployment income, student loans, homeowners and cryptocurrency holders, according to Bloomberg.

Why is the IRS suing TurboTax?

Intuit produces TurboTax tax filing software. Specifically, in 2022, the Federal Trade Commission alleged that the word “free” misled consumers into believing they could file their taxes for free with TurboTax.

Does TurboTax take money from your refund?

You can use your federal refund to pay your TurboTax fees. There's a $40 processing fee charged by the bank that handles the transaction when the IRS processes your return. If your return is rejected, you might have to enter your bank account information again, but you won't be charged a second time.

Why is TurboTax charging me 150?

You appear to be using Online Deluxe Edition, which is a paid version--$60 for Federal and $50 for state, and if you choose to pay the fees out of your Federal refund, there is an additional $40 service fee ($45 for California filers.) So if you chose those 3 things, that would account for your $150 in fees.

How much do you have to make to file taxes?

What is the difference between TurboTax Deluxe and free TurboTax?

The Deluxe edition of TurboTax is designed to calculate 350 line-item tax credits and deductions. With the free, online edition, you can only take the standard deduction and any above-the-line deductions and credits. TurboTax Deluxe lets you take itemized deductions and below-the-line credits.

Is FreeTaxUSA or TurboTax better?

TurboTax and FreeTaxUSA are online tax preparation services that can be used by individuals and businesses. TurboTax is more full-featured and has lots of built-in guidance, as well as helpful support delivered by phone or chat. However, it's significantly more expensive.

What is the cheapest TurboTax option?

Is TurboTax overpriced?

TurboTax has a lot going for it, but price isn't one of them. The list price of its software routinely is on the high end of the spectrum, especially when adding the cost of a state return. And if you want access to human help, it costs even more.

Why am I being charged a $40 fee TurboTax?

There has always been the Extra $40 Refund Processing Service charge (45 in California) to have the fees deducted from your refund. https://ttlc.intuit.com/community/downgrading/help/how-do-i-remove-pay-with-my-refund-fees-in-turbot...

How do I get rid of TurboTax fees?

Go to the Premium Services Benefits section and select Remove. Select Remove and Pay With Card. Select View Payment Options. On the How would you like to pay for TurboTax?