---
title: The trouble with TurboTax
description: The FTC and Sen. Elizabeth Warren say TurboTax has been tricking taxpayers into paying for tax prep for years.
---

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# [The trouble with TurboTax](https://hs-sbup.thehustle.co/news/4-19-22-trouble-with-turbotax)

 Written by [Juliet Bennett Rylah](https://hs-sbup.thehustle.co/news/author/juliet-bennett-rylah) | Apr 19, 2022 6:45:06 AM

Did you know the average American spends ~13 hours and $240 filing taxes? Ugh.

Among tax prep services, Intuit’s TurboTax is king, holding [73%](https://secondmeasure.com/datapoints/tax-prep-2021-turbotax-hrblock-blucora/) of the market share as of May 2021.

But the FTC and government officials claim TurboTax has been scamming us.

#### **When free isn’t free**

In March, the FTC [sued](https://www.ftc.gov/news-events/news/press-releases/2022/03/ftc-sues-intuit-its-deceptive-turbotax-free-filing-campaign) Intuit, accusing it of deceptive ads for free tax filing — like this one that [says “free”](https://www.youtube.com/watch?v=v-dKSrMQJCE) a bunch.

In reality, TurboTax’s free option is only available for some taxpayers, the [complaint](https://s3.documentcloud.org/documents/21562461/ftc-complaint-against-intuit.pdf) argues. For example, It doesn’t include anyone filing 1099s — so no gig workers.

People who start their “free” return enter info before being told they must upgrade, which can cost ~$60 to $119+.

#### **But for 70% of US taxpayers…**

… filing should be free, 1099s and all.

Back in 2002, the IRS [made a deal](https://www.vox.com/policy-and-politics/22596072/irs-turbotax-hr-block-free-file-tax-return) known as the [IRS Free File Program](http://irs.gov/freefile). It wouldn’t develop its own competing service if tax software companies offered free prep to low- and middle-income taxpayers.

This year, that’s an adjusted gross income of $73k.

But participation has historically been low — in 2018, ~3m of the ~104m eligible taxpayers took advantage.

Sen. Elizabeth Warren, Rep. Katie Porter, and Rep. Brad Sherman sent Intuit CEO Sasan K. Goodarzi a [letter](https://s3.documentcloud.org/documents/21562461/ftc-complaint-against-intuit.pdf) on Monday accusing Intuit of lobbying for the Free File program, then “scamming taxpayers into paying” anyhow by:

- Obscuring the Free File program
- Changing its name and landing page to create confusion
- Funneling users into paid products

Though the IRS changed the deal in 2019 to allow the creation of its own service, it still doesn’t have one. And Intuit [quit the program](https://www.propublica.org/article/turbotax-maker-intuit-will-leave-free-tax-filing-partnership-with-irs) in 2021.

**Now what?**

Intuit plans to fight the FTC, saying its claims are “[not credible](https://www.intuit.com/blog/taxpayer-empowerment/intuit-responds-to-complaint-from-u-s-federal-trade-commission/),” and that its campaigns have led to increased awareness about free filing.

Meanwhile, the letter demands TurboTax answer several questions about its practices, while also calling attention to the [Tax Filing Simplification Act](https://www.congress.gov/bill/116th-congress/house-bill/2297?q=%7B%22search%22%3A%5B%22%5C%22Tax+Filing+Simplification+Act%5C%22%22%2C%22%5C%22Tax%22%2C%22Filing%22%2C%22Simplification%22%2C%22Act%5C%22%22%5D%7D&s=2&r=1).

It was 1st introduced in 2016, so it hasn’t exactly moved along, but it would direct the IRS to create a simple filing system that would let many taxpayers forgo tax prep altogether.

**BTW:** *ProPublica* has been reporting on this for *years*. Check out its extensive work [here](https://www.propublica.org/series/the-turbotax-trap).

[View full post](https://hs-sbup.thehustle.co/news/4-19-22-trouble-with-turbotax)

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