Current:Home > reviewsIs TurboTax actually free? The FTC says no. The company says yes. Here's what's what. -Wealth Evolution Experts
Is TurboTax actually free? The FTC says no. The company says yes. Here's what's what.
View
Date:2025-04-24 16:05:19
The Federal Trade Commission and the makers of TurboTax are in a fight about what the word “free” means or whether something free really costs you nothing.
In a new ruling on Monday, the FTC said Intuit, the company that owns TurboTax, continues to mislead consumers with its “file free” claims “because most people don’t qualify for the $0 to file. The FTC says consumers don’t find out they don’t qualify for the free income tax software or filing until “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.”
The FTC said in 2022 it also took action against Intuit for the same thing, claiming the ads were deceptive.
But Intuit says 37% of its users using the Form 1040 with limited credit qualify for the “100% Free with expert help” offering.
What's the free fight about?
Intuit spokesman Derrick Plummer told USA TODAY that the FTC’s decision and the 2022 federal court action - which Plummer said ultimately led to a ruling in Intuit’s favor - are flawed decisions.
Intuit on Monday filed an appeal of the FTC’s latest decision with a federal court of appeals and said “we believe that when the matter ultimately returns to a neutral body we will prevail.”
Plummer also took aim at the FTC and its own internal judicial system: “Absolutely no one should be surprised that FTC Commissioners – employees of the FTC – ruled in favor of the FTC as they have done in every appeal for the last two decades. This decision is the result of a biased and broken system where the Commission serves as accuser, judge, jury, and then appellate judge all in the same case.”
In a blog post, Intuit also said: “There is no monetary penalty in the FTC’s order, and Intuit expects no significant impact to its business. Intuit has always been clear, fair and transparent with its customers and is committed to free tax preparations.”
In a statement after the Monday ruling, Samuel Levine, Director of the Federal Trade Commission’s Bureau of Consumer Protection said the commission’s “opinion finding that Intuit has engaged in a ‘broad, enduring, and willful’ deceptive advertising campaign is a major win for consumers and honest marketers.”
The Commisison’s review found “Intuit’s claims that TurboTax was a 'free' service were wholly unsupported, and that the vast majority of tax filers were not eligible for the 'free' version of the service.”
Levine said the order sets forth a clear standard that Intuit must stop their deceptive ads and tell the truth about how many are eligible for the “free” products.
“The order also sends a message across industry – ‘free’ means free – not ‘free for a few’ or ‘free for some.’ Businesses can expect an FTC enforcement action if they harness the power of '“free' in the dishonest way Intuit did.”
FTC Deputy Director Juliana Gruenwald Henderson said on Tuesday that the FTC had no further comment beyond the Commission’s opinion and order.
Tax help:Older adults can save on 2023 taxes by claiming an extra deduction. Here's how to do it.
Here's some free resources for your taxes
The FTC also provided tips on how to find free help with taxes:
- If your adjusted gross income was $79,000 or less, the IRS Free File Program has free guided tax prep software for your federal taxes. Use this tool to find an IRS Free File trusted partner.
- For servicemembers or veterans, MilTax is the Department of Defense’s free filing program. There, you can check eligibility, including for family members and survivors. Or start with the FAQs to learn more.
- Volunteer Income Tax Assistance (VITA) is an IRS program that helps people who make $64,000 or less, have a disability, or who don’t feel comfortable speaking English. Tax Counseling for the Elderly (TCE) helps people 60 and older.
- Keep an eye on this tax season’s IRS’s Free File Fillable Forms, available any day now, to check eligibility and get online versions of your federal tax forms, but no guidance.
- This year, the IRS is launching a Direct File pilot. If you’re eligible and choose to participate in the pilot, you can electronically file your 2023 federal tax return for free directly with the IRS.
Find your state tax agency to find out what help might be available for tax returns in your state.
Betty Lin-Fisher is a consumer reporter for USA TODAY. Reach her at blinfisher@USATODAY.com or follow her on X, Facebook or Instagram @blinfisher. Sign up for our free The Daily Money newsletter, which will include consumer news on Fridays, here.
veryGood! (32879)
Related
- US wholesale inflation accelerated in November in sign that some price pressures remain elevated
- 'I look really soft': Caitlin Clark brushes off slight ankle injury in Fever win vs. Dream
- An injured and angry water buffalo is on the loose in Iowa
- Trailer for Christopher Reeve 'Super/Man' documentary offers glimpse into late actor's life
- What to know about Tuesday’s US House primaries to replace Matt Gaetz and Mike Waltz
- Release the kraken: You can now buy the Lowe's Halloween line in stores
- Jenna Ortega Slams “Insane” Johnny Depp Dating Rumors
- First rioter to enter Capitol during Jan. 6 attack is sentenced to over 4 years in prison
- Residents worried after ceiling cracks appear following reroofing works at Jalan Tenaga HDB blocks
- Joe Jonas Denies He's Going After Ex Sophie Turner in Post-Divorce Album
Ranking
- This was the average Social Security benefit in 2004, and here's what it is now
- Dog breeder killed; authorities search for up to 10 Doberman puppies
- Danny Jansen makes MLB history by appearing in same game for both teams
- Mariah Carey says her mom and sister died on the same day
- Krispy Kreme offers a free dozen Grinch green doughnuts: When to get the deal
- Tulsi Gabbard, who ran for 2020 Democratic nomination, endorses Trump against former foe Harris
- Special counsel urges appeals court to reinstate classified documents case against Trump
- Wisconsin Supreme Court refuses to hear case seeking to revive recall of GOP Assembly speaker Vos
Recommendation
IRS recovers $4.7 billion in back taxes and braces for cuts with Trump and GOP in power
'Only Murders' doesn't change at all in Season 4. Maybe that works for you!
'Only Murders in the Building' Season 4: Release date, time, cast, where to watch mystery comedy
US Open Day 1: What you missed as 2024's final Grand Slam begins
A South Texas lawmaker’s 15
Princess Kate seen in rare outing for church service in Scotland
From cold towels to early dismissal, people are finding ways to cope with a 2nd day of heat wave
Yearly tech checkup: How to review your credit report, medical data and car recalls