Why do people say not to use TurboTax?
Asked by: Ms. Joana Turner II | Last update: January 26, 2026Score: 4.6/5 (2 votes)
People avoid TurboTax due to its deceptive "free" marketing, which pushes upgrades for many users, leading to extra costs and a feeling of being tricked, alongside concerns about its high prices for paid versions, lack of flexibility for complex situations, lobbying against free government filing, and potential for errors or poor customer service. Negative experiences with bait-and-switch tactics, upselling, and the FTC taking action against their "free" claims have fueled user dissatisfaction, pushing some to alternatives like IRS Free File.
What is the controversy with TurboTax?
Some of the allegations against Intuit included that it had literally worked to ensure that its IRS Free File software wouldn't even come up in internet search results and that the company's own website made it virtually impossible to navigate to the IRS free filing program.
Why are people saying not to use TurboTax?
TurboTax price gouging and lack of transparency.
What is the downside of TurboTax?
The main downsides of TurboTax are its high cost (especially for complex returns), aggressive upselling, and a limited "free" version that often requires upgrades; it also lacks the personalized, proactive advice a human CPA offers, relying instead on algorithms that can miss complex scenarios or push users toward costly add-ons, and has faced legal issues over deceptive advertising for its free filing options.
What's the problem with 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.
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What are TurboTax's biggest complaints?
In March, the FTC sued Intuit, accusing it of deceptive ads for free tax filing — like this one that says “free” a bunch. In reality, TurboTax's free option is only available for some taxpayers, the complaint argues. For example, It doesn't include anyone filing 1099s — so no gig workers.
Why do people still use TurboTax?
TurboTax offers comprehensive support as you prepare your taxes. You'll have access to expert guidance and explanations throughout the process, enabling you to understand your taxes and your tax outcome so you can make informed choices.
Do tax preparers use TurboTax?
TurboTax is only licensed for personal use, and it is not compliant with IRS regulations for paid preparers. Intuit offers ProSeries, ProConnect, and Lacerte Tax software, which are IRS-compliant for tax professionals who are filing multiple returns.
How to get $4000 from TurboTax?
You can get up to $4,000 from TurboTax via their Refund Advance loan, a no-fee, 0% APR loan for eligible filers, accessed through a Credit Karma Money Spend account after your return is accepted by the IRS. You must e-file, meet underwriting, and apply for it as a refund delivery option, potentially getting funds in minutes. This advance is a portion of your expected refund, with the remainder (minus fees) coming later.
Does TurboTax ever make mistakes?
TurboTax Online GUARANTEES. 100% Accurate Calculations Guarantee: If you pay an IRS or state penalty or interest because of a TurboTax calculation error, we'll pay you the penalty and interest.
Who to use instead of TurboTax?
Best tax software of 2026
- Best for ease of use: TurboTax.
- Best for affordability: TaxSlayer.
- Best for accuracy guarantee: TaxAct.
- Best for live support: H&R Block.
- Best for filing state taxes: Jackson Hewitt.
- Best for free filing: Cash App Taxes.
What are the biggest tax mistakes people make?
The biggest tax mistakes people make include simple errors like wrong Social Security numbers, names, or math; failing to file on time or at all; missing out on eligible deductions and credits (like education or retirement); not keeping good records (W-2s, receipts); incorrect filing status; and poor record-keeping for business expenses, leading to potential audits or processing delays. Using IRS.gov resources and tax software helps avoid these common pitfalls.
What is a good reason for not filing taxes?
Failure to file or pay penalties
Examples of valid reasons for failing to file or pay on time may include: Fires, natural disasters or civil disturbances. Inability to get records. Death, serious illness or unavoidable absence of the taxpayer or immediate family.
What's the catch with TurboTax free?
The Truth About TurboTax Free Edition
Despite its name, TurboTax Free Edition isn't actually free for a large portion of taxpayers. The software is only free if you have the simplest tax situation—meaning you're filing a basic Form 1040 with a W-2 and taking the standard deduction.
Can I legally refuse to pay taxes?
No, you generally cannot legally choose not to pay taxes if you meet the filing requirements, as the obligation to pay is mandatory under U.S. law, but you can legally reduce your tax burden through deductions, credits, and living below the filing threshold; however, intentionally evading taxes is a crime with severe penalties, including fines and imprisonment, while making frivolous legal arguments against paying taxes is also prosecuted.
Why boycott TurboTax?
Intuit's TurboTax, one of the most widely-used online tax filing services, has recently faced public scrutiny for spending decades lobbying the government to continue forcing people to calculate and report finances themselves to create a demand for their services.
How to get a $10,000 tax refund?
A $10,000 tax refund usually comes from significant overpayment during the year or qualifying for large refundable tax credits, like education credits (American Opportunity Credit) or potentially the Child Tax Credit, plus itemized deductions (like the capped State & Local Tax (SALT) deduction) or energy credits, especially when combined with lower income or specific filing statuses (Head of Household, Married Filing Jointly). It's not guaranteed but achieved by maximizing eligible credits and deductions, not by "getting" extra money from the IRS.
What are common tax filing errors?
Misspelled names. Likewise, a name listed on a tax return should match the name on that person's Social Security card. Entering information inaccurately. Wages, dividends, bank interest, and other income received and that was reported on an information return should be entered carefully.
Should I do H&R Block or TurboTax?
Both providers also offer a great user experience, helping users to upload, import, and add their information efficiently and with guidance. However, we found that the experience of working within the TurboTax interface was more streamlined than that of H&R Block's.
What expenses are 100% tax deductible?
Common 100% deductible expenses include advertising, salaries, rent, utilities, insurance, legal/professional fees, interest, repairs, and supplies, while for meals, it's typically company parties, snacks for employees, and meals provided for employer convenience (like overtime), with client meals usually being 50% deductible, notes CPA WFY, Bench Accounting, and TurboTax.
What is the downside of using TurboTax?
The main downsides of TurboTax are its confusing and often higher costs (with hidden fees and constant upgrade nudges), lack of truly personalized advice for complex situations (compared to a CPA), and potential for user errors, despite its ease of use for simple returns; it also lacks in-person support and has faced criticism over deceptive "free" marketing, leading to legal settlements.
Is TurboTax free in 2025?
Yes, TurboTax Free Edition is available for 2025, but it's only truly free for very simple tax returns (W-2 income, standard deduction, basic credits like EITC/CTC) and approximately 37% of filers qualify, with many discovering costs only after entering data; however, Intuit is no longer part of the IRS Free File program. Active military and those with incomes under $84,000 may also get free filing, but complex situations like self-employment or owning a home usually require paid versions.
What is the TurboTax scandal?
The "TurboTax scandal" refers to deceptive marketing by Intuit, the maker of TurboTax software, which led to lawsuits and settlements for misleading low-income users into paying for "free" tax filing services they were eligible for free through the IRS Free File program. Intuit paid $141 million in restitution to millions of affected consumers and was ordered by the Federal Trade Commission (FTC) (FTC) to stop its "free, free, free" ad campaigns and clearly disclose who qualifies for free services.
Is it better to use a tax person or TurboTax?
Cost Efficiency: For individuals with straightforward tax needs, TurboTax is an affordable tax preparation software option compared to hiring a CPA. Quick Processing: TurboTax enables fast preparation, even for relatively complex returns, saving significant time.