Attorney analysis of TurboTax's user agreements and data practices
TurboTax's terms include extensive data collection, limited free tier access, and accuracy guarantees that are more limited than their marketing suggests.
TurboTax by Intuit is the most popular tax preparation software in the United States. However, the company has faced significant criticism and legal action for deceptive marketing of its "free" tier and for lobbying against free government-provided tax filing. The terms of service reflect a company that prioritizes data collection and upselling.
Intuit collects and retains extensive financial data from your tax returns. This data can be used for marketing, shared with partners, and retained even after you stop using the service.
TurboTax's "Free Edition" only covers the simplest returns (Form 1040 with no schedules). Most taxpayers with any complexity are pushed to paid tiers, often after investing significant time in the free version.
Intuit claims broad rights to use, share, and analyze your financial data for purposes beyond tax preparation, including targeted advertising.
The "100% Accurate" guarantee only covers calculation errors, not user input mistakes, misunderstandings, or situations where you were prompted incorrectly.
Free audit support only includes answering questions. Actual audit representation (someone defending you) requires the paid "MAX" upgrade.
The "maximum refund" guarantee is essentially meaningless - it just promises to use legitimate deductions, which any software should do.
If TurboTax makes a calculation error, they will pay penalties and interest - though the bar for proving a "TurboTax error" vs. user error is high.
Intuit's data practices have been widely criticized. Your tax return contains some of your most sensitive financial information, yet TurboTax's terms grant extensive rights to this data.
Intuit may share your tax data across its ecosystem (Credit Karma, Mint, QuickBooks) for marketing and product development, even if you only use TurboTax.
If you've experienced problems with TurboTax billing, accuracy issues, or data privacy concerns, schedule a consultation.
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