Attorney-reviewed analysis of tax preparation software agreements. Understand accuracy guarantees, audit support limitations, and who's really responsible for errors.
Tax software handles your most sensitive financial data and makes calculations that can result in significant financial consequences. Despite marketing accuracy guarantees, the fine print often limits liability to the software fee and places ultimate responsibility for return accuracy on you.
All four tax software services reviewed have "accuracy guarantees" that are far more limited than their marketing suggests. Most only cover penalties and interest if the software made a calculation error - not if you entered incorrect information or misunderstood deduction eligibility.
| Service | Score | Grade | Key Concern |
|---|---|---|---|
| FreeTaxUSA Best in Category | 65 | B- | Limited support, basic accuracy guarantee only |
| TaxAct | 58 | C+ | Upselling tactics, tiered support limitations |
| H&R Block | 52 | C | In-person vs online terms differ significantly |
| TurboTax Lowest in Category | 45 | C- | Complex tiering, limited free edition, data usage |
Budget-friendly option with straightforward terms
Mid-tier option with aggressive upselling
Hybrid online/in-person with complex terms
Market leader with concerning terms
Accuracy guarantees typically only cover software calculation errors, not user input mistakes, misunderstandings, or changed tax situations. You're still responsible for the accuracy of your return.
Most tax software offers "audit support" which means answering questions, not "audit representation" which means defending you before the IRS. True representation often costs extra or isn't available.
Tax software collects extensive financial data. Terms often allow using this data for marketing, sharing with partners, or creating anonymized datasets - even after you stop using the service.
"Maximum refund guarantee" claims are largely meaningless - they're promising to use all legal deductions and credits, which is just doing the job correctly. No special protection is provided.
If you've experienced issues with tax software accuracy, unauthorized charges, or need help understanding your rights, our legal team can help.
Schedule a ConsultationEach tax software service is evaluated by a licensed attorney on a 100-point scale, examining: