"Fool me once, shame on you. Fool me twice, shame on me." The FTC isn’t suggesting a change in TurboTax’s advertising tag line, but it’s raising yet another concern about what the company means by “free.”
"Free” means “free,” right? Except to TurboTax which found itself on the wrong end of a new ruling from the Federal Trade Commission (FTC) – and a number of ConsumerAffairs readers.
“TurboTax advertises its ‘free’ tax filing service, which, in reality, is anything but,” Troy from La Mesa Calif., wrote in his review of the company, narrating the kind of experience that got TurboTax in this mess.
“The platform is designed with dark patterns, making it nearly impossible for the average American to navigate the system and file their taxes without eventually being pushed towards paid options. This misleading marketing tactic leaves users feeling cheated and frustrated," Troy wrote.
This marks the second time in as many years that Intuit – the company behind TurboTax – has apparently crossed the line. The first time, in 2022, the FTC took action against Intuit, claiming that TurboTax’s “file FREE” claims misled people because most people didn’t qualify for “$0 to file.”
And that came after they spent a lot of time feeding income tax-related info into TurboTax’s system. As a result, the FTC directed Intuit to stop making any “free” claims that could be misleading.
Are there safer, more consumer-friendly options?
If you don’t want to mess with software or run the chance that there’s going to be some sort of gotcha, there are some “real” free sources of tax help:
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.
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.
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.
Beginning this year, the IRS also launched 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.
Keep an eye on this tax season’s IRS’s Free File Fillable Forms, opening any day now, to check eligibility and get online versions of your federal tax forms, but no guidance.
Don’t forget, there are also state tax agencies that can help with filing tax returns, too.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-01-23 12:28:19
