Editing TurboTax (section)

==Criticisms==

=== Blocking search engines from indexing its "free file program" page ===
Citizens of the US that make up to $72,000 per year are eligible for free preparation and filing of tax forms through the IRS [[Free File]] program.<ref>{{cite web |url=https://www.irs.gov/e-file-providers/about-the-free-file-program |title=Free File: Do your Federal Taxes for Free {{!}} Internal Revenue Service |access-date=April 23, 2019 |archive-date=April 23, 2019 |archive-url=https://web.archive.org/web/20190423172412/https://www.irs.gov/e-file-providers/about-the-free-file-program |url-status=live }}</ref> However, TurboTax's "free file program" page (https://turbotax.intuit.com/taxfreedom/) contains specific HTML tags (noindex, nofollow) which block search engines from indexing it.<ref>{{Cite web|url=https://imgur.com/gallery/ErWicdl|title=Ok, so I just read this article about Turbotax doing shady things and found out something really interesting|website=Imgur|access-date=April 23, 2019|archive-date=April 23, 2019|archive-url=https://web.archive.org/web/20190423173820/https://imgur.com/gallery/ErWicdl|url-status=live}}</ref> TurboTax has been deceiving customers which were eligible for the free submission into signing up for their commercial product.<ref>{{Cite web|url=https://www.propublica.org/article/turbotax-just-tricked-you-into-paying-to-file-your-taxes|title=Here's How TurboTax Just Tricked You into Paying to File Your Taxes|access-date=April 22, 2019|archive-date=December 3, 2021|archive-url=https://web.archive.org/web/20211203182130/https://www.propublica.org/article/turbotax-just-tricked-you-into-paying-to-file-your-taxes|url-status=live}}</ref> Starting December 30, 2019, under a new agreement from the IRS, TurboTax can no longer hide their free version services from search results.<ref>{{cite web|url = https://www.businessinsider.com/turbotax-hr-block-cannot-hide-free-filing-services-irs-agreement-2020-1|title = TurboTax, H&R Block Can't Hide Free Filing Services Under New IRS Agreement|website = [[Business Insider]]|access-date = February 25, 2020|archive-date = February 25, 2020|archive-url = https://web.archive.org/web/20200225045234/https://www.businessinsider.com/turbotax-hr-block-cannot-hide-free-filing-services-irs-agreement-2020-1|url-status = live}}</ref>

=== Writing to the boot track ===

The 2003 version of the TurboTax software contained [[digital rights management]] that tracked whether it had previously been installed on a computer by writing to sector 33 on the hard drive. This allowed it to track if it was on a computer previously, even through reinstalling the operating system. This also caused it to conflict with some boot loaders that store data there, rendering those computers unbootable.<ref>{{cite web |url = http://news.cnet.com/2100-1017-979357.html |title = Intuit pours oil on TurboTax troubles |work = CNET |date = January 6, 2003 |first = David |last = Becker |access-date = April 15, 2013 |archive-date = October 31, 2012 |archive-url = https://web.archive.org/web/20121031214423/http://news.cnet.com/2100-1017-979357.html |url-status = live }}</ref>

=== Opposition to return-free filing ===

Intuit, the owner of TurboTax, spent more than $11 million on federal lobbying between 2008 and 2012. Intuit "opposes IRS government tax preparation", particularly allowing taxpayers to file pre-filled returns for free, in a system similar to the established [[CalFile#ReadyReturn|ReadyReturn]] service in California. The company also lobbied on bills in 2007 and 2011 that would have barred the Treasury Department, which includes the IRS, from initiating return-free filing. An Intuit spokeswoman said in early 2013 that "Like many other companies, Intuit actively participates in the political process." She said that [[return-free filing]] had "implications for accuracy and fairness in taxation."<ref name="Free">{{cite web |url = https://www.propublica.org/article/how-the-maker-of-turbotax-fought-free-simple-tax-filing |title = How the Maker of TurboTax Fought Free, Simple Tax Filing |work = ProPublica |first = Liz |last = Day |date = March 26, 2013 |access-date = June 30, 2017 |archive-date = July 5, 2017 |archive-url = https://web.archive.org/web/20170705180834/https://www.propublica.org/article/how-the-maker-of-turbotax-fought-free-simple-tax-filing |url-status = live }}</ref><ref>{{cite news |url = https://www.forbes.com/sites/leonardburman/2013/04/15/the-tax-complexity-lobby/ |title = The Tax Complexity Lobby |first = Len |last = Burman |work = Forbes |date = April 15, 2013 |access-date = September 17, 2017 |archive-date = November 24, 2017 |archive-url = https://web.archive.org/web/20171124072742/https://www.forbes.com/sites/leonardburman/2013/04/15/the-tax-complexity-lobby/ |url-status = live }}</ref> This led journalist [[Dylan Matthews]] to propose a boycott of the company in 2017.<ref name="Why I'm boycotting TurboTax">{{cite web |last1 = Matthews |first1 = Dylan |title = Why I'm boycotting TurboTax this year |url = https://www.vox.com/2016/3/29/11320386/turbotax-boycott-lobbying |website = Vox |date = March 29, 2016 |access-date = April 1, 2017 |archive-date = March 31, 2017 |archive-url = https://web.archive.org/web/20170331040859/http://www.vox.com/2016/3/29/11320386/turbotax-boycott-lobbying |url-status = live }}</ref><ref name="The Call for Boycotting TurboTax">{{cite web |title = The Call for Boycotting TurboTax |url = http://inequality.org/call-boycotting-turbotax/ |publisher = [[Institute for Policy Studies]] |access-date = April 1, 2017 |archive-date = June 10, 2016 |archive-url = https://web.archive.org/web/20160610023344/http://inequality.org/call-boycotting-turbotax/ |url-status = live }}</ref>

In its 2012 [[Form 10-K]], Intuit said that "We anticipate that governmental encroachment at both the federal and state levels may present a continued competitive threat to our business for the foreseeable future."<ref name="Free"/>

=== Repositioning of versions ===

In January 2015 it became known that the Deluxe version no longer supports IRS Schedules C, D, E, and F in interview mode. Although the Deluxe version still allows entry into those schedules by means of "form mode", doing so may result in the loss of the ability to file electronically. In addition, the Premium version no longer supports Schedule C or F in interview mode. Intuit was widely criticized for these changes and responded with short-term mitigation, although it has not reversed the decision.<ref>{{cite web |url = https://www.forbes.com/sites/janetnovack/2015/01/22/intuit-offers-25-refund-to-turbotax-deluxe-users-hurt-by-software-changes/ |title = Intuit Offers $25 Refund To TurboTax Deluxe Users Hurt By Software Changes |work = Forbes |first = Janet |last = Novack |date = January 22, 2015 |access-date = September 17, 2017 |archive-date = April 19, 2017 |archive-url = https://web.archive.org/web/20170419173020/https://www.forbes.com/sites/janetnovack/2015/01/22/intuit-offers-25-refund-to-turbotax-deluxe-users-hurt-by-software-changes/ |url-status = live }}</ref> On February 5, 2015, Intuit sent a second email apology to current and former customers regarding the decision to remove specific schedules from the Deluxe and Premium versions. Intuit also apologized for their poorly received initial apology sent on January 27. In the February 5 message Intuit announced that they would reverse course in their 2015 Deluxe and Premium versions, including the schedules that were historically included in the software.<ref>{{cite web |url = https://www.forbes.com/sites/janetnovack/2015/01/29/intuit-cries-uncle-will-roll-back-turbotax-deluxe-changes/ |title = Intuit Cries Uncle, Will Reverse TurboTax Deluxe Changes |work = Forbes |access-date = November 24, 2015 |archive-date = November 25, 2015 |archive-url = https://web.archive.org/web/20151125063346/http://www.forbes.com/sites/janetnovack/2015/01/29/intuit-cries-uncle-will-roll-back-turbotax-deluxe-changes/ |url-status = live }}</ref>

===Fraudulent return claims===
In an article by [[Brian Krebs]] on February 15, 2015, it was reported that Intuit Inc. temporarily suspended the transmission of state e-filed tax returns due to a surge in complaints from consumers about refunds already claimed in their name.<ref>{{cite web |url = https://krebsonsecurity.com/2015/02/citing-tax-fraud-spike-turbotax-suspends-state-e-filings/ |title = Citing Tax Fraud Spike, TurboTax Suspends State E-Filings |work = Krebs on Security |date = February 6, 2015 |access-date = November 24, 2015 |archive-date = August 12, 2015 |archive-url = https://web.archive.org/web/20150812221019/https://krebsonsecurity.com/2015/02/citing-tax-fraud-spike-turbotax-suspends-state-e-filings/ |url-status = live }}</ref>

In a later article on February 22, 2015, Krebs reported that it was alleged by two former employees that [[Intuit]] knowingly allowed fraudulent returns to be processed on a massive scale as part of a revenue boosting scheme. Both employees, former security team members for the company, stated that the company had ignored repeated warnings and suggestions on how to prevent fraud. One of the employees was reported to have filed a [[whistleblower]] complaint with the US Securities and Exchange Commission.<ref>{{cite web |url = https://krebsonsecurity.com/2015/02/turbotaxs-anti-fraud-efforts-under-scrutiny/ |title = TurboTax's Anti-Fraud Efforts Under Scrutiny |work = Krebs on Security |date = February 22, 2015 |access-date = November 24, 2015 |archive-date = August 12, 2015 |archive-url = https://web.archive.org/web/20150812221430/https://krebsonsecurity.com/2015/02/turbotaxs-anti-fraud-efforts-under-scrutiny/ |url-status = live }}</ref>

=== Diverting stimulus funds away from customers ===
In 2021, some individuals who used TurboTax for their tax filings were unable to access stimulus checks sent by the government because TurboTax diverted the checks to old and unused bank accounts for the customers.<ref>{{Cite web|last=Adamczyk|first=Alicia|date=2021-03-17|title=TurboTax and H&R Block said they worked with the IRS to fix stimulus check deposit issues. Customers say they still can't access the funds|url=https://www.cnbc.com/2021/03/17/turbotax-hr-block-users-report-issues-getting-third-stimulus-check.html|access-date=2021-03-18|website=CNBC|language=en|archive-date=March 18, 2021|archive-url=https://web.archive.org/web/20210318163935/https://www.cnbc.com/2021/03/17/turbotax-hr-block-users-report-issues-getting-third-stimulus-check.html|url-status=live}}</ref>

=== Deceptive advertising of its "free" tax filing products ===
On March 29, 2022, the [[Federal Trade Commission]] announced that they would take legal action against Intuit, the parent company of TurboTax in response to deceptive advertising of its free tax filing products. The commission reported that the majority of tax filers cannot use any of TurboTax's free products which were advertised, claiming that it has misled customers to believing that tax filers can use TurboTax to file their taxes. In addition, tax filers who earn farm income or are gig workers cannot be eligible for those products.<ref>{{cite press release|title=FTC Sues Intuit for Its Deceptive TurboTax "free" Filing Campaign|url=https://www.ftc.gov/news-events/news/press-releases/2022/03/ftc-sues-intuit-its-deceptive-turbotax-free-filing-campaign|publisher=Federal Trade Commission|date=2022-03-29|access-date=March 30, 2022|archive-date=March 30, 2022|archive-url=https://web.archive.org/web/20220330000252/https://www.ftc.gov/news-events/news/press-releases/2022/03/ftc-sues-intuit-its-deceptive-turbotax-free-filing-campaign|url-status=live}}</ref><ref>{{cite news|last=Arbel|first=Tali|title=FTC sues Intuit to stop ‘bait-and-switch’ TurboTax ads|url=https://apnews.com/article/business-federal-trade-commission-2684e2f02791b804c3207abe073e2c98|work=Associated Press|date=2022-03-29|access-date=2022-03-29|archive-date=March 30, 2022|archive-url=https://web.archive.org/web/20220330000249/https://apnews.com/article/business-federal-trade-commission-2684e2f02791b804c3207abe073e2c98|url-status=live}}</ref> Intuit announced that they would take counter action, announcing that the FTC's arguments are "not credible" and claimed that their free tax filing service is available to all tax filers.<ref>{{cite news|last=Dress|first=Bradd|title=FTC sues Intuit over TurboTax 'free' filing ad campaign|url=https://thehill.com/policy/technology/600252-ftc-sues-intuit-over-turbotax-free-filing-ad-campaign|work=The Hill|publisher=Nexstar Media|date=2022-03-29|access-date=March 30, 2022|archive-date=March 30, 2022|archive-url=https://web.archive.org/web/20220330000249/https://thehill.com/policy/technology/600252-ftc-sues-intuit-over-turbotax-free-filing-ad-campaign|url-status=live}}</ref>

On May 4, 2022, Intuit agreed to pay a $141 million settlement over the misleading advertisements.<ref>{{cite news|title=Intuit to pay $141M settlement over ‘free’ TurboTax ads|url=https://apnews.com/article/technology-business-new-york-united-states-personal-taxes-2427cfbc220382ca89ac992f6dde8030|work=Associated Press|date=May 4, 2022|access-date=May 6, 2022|archive-date=May 6, 2022|archive-url=https://web.archive.org/web/20220506161952/https://apnews.com/article/technology-business-new-york-united-states-personal-taxes-2427cfbc220382ca89ac992f6dde8030|url-status=live}}</ref> In May 2023, the company began sending over 4 million customers their settlement checks, which ranged from $30 to $85 USD.<ref>{{Cite web |last=Valinsky |first=Jordan |date=2023-05-09 |title=TurboTax is sending checks to 4.4 million customers as part of a $141 million settlement {{!}} CNN Business |url=https://www.cnn.com/2023/05/09/business/turbotax-settlement/index.html |access-date=2023-05-09 |website=CNN |language=en}}</ref> In January 2024, the FTC ordered Intuit to fix its misleading ads for "free" tax preparation software - for which most filers wouldn't even qualify.<ref>{{Cite web |last=Kiel |first=Justin Elliott,Paul |date=2024-01-23 |title=FTC Orders Maker of TurboTax to Cease “Deceptive” Advertising |url=https://www.propublica.org/article/ftc-intuit-turbotax-cease-deceptive-advertising-free-filing-taxes |access-date=2024-01-24 |website=ProPublica |language=en}}</ref>

As of March 2024, Intuit has stopped providing its free TurboTax service.<ref>[https://freefile.intuit.com/ IRS Free File Program]</ref>

=== Ontario Child Tax Care Credit miscalculation ===
In 2025, [[Global News]] reported that TurboTax claimed financial credits for customers in Ontario that they were not eligible for. The Ontario Child Tax Care Credit, started during the [[COVID-19 pandemic in Canada|COVID-19 pandemic]], allows eligible families to claim up to 75% of their eligible child care expenses. Though only households earning less than {{Currency|150000|CAD}} were not eligible, TurboTax allegedly "defaulted to calculating child care expense credits based solely on the income of the lower-earning spouse" on joint tax returns. This led to the [[Canada Revenue Agency]] demanding penalties and interest in the tens of thousands of dollars from several TurboTax customers. TurboTax argued that the software's calculations were accurate and blamed users for the error.<ref>{{Cite web |last=O'Shea |first=Sean |date=April 14, 2025 |title='A nasty surprise': TurboTax customers in Ontario owe big money after CRA audits |url=https://globalnews.ca/news/11128974/turbotax-ontario-cra-audits/ |access-date=2025-04-15 |website=[[Global News]] |language=en-CA}}</ref>