Is TurboTax a Scam?

If you’re thinking of using TurboTax, you need to know: Is TurboTax a scam? 

Below, we explain whether TurboTax is a scam and discuss some steps you can take to improve your safety when using this platform. 

What Is TurboTax?

TurboTax is tax preparation software.

Individuals and small businesses can use it to file their taxes (state and federal) online. Users answer questions (e.g., expenses, income, etc.), and the software uses the information provided to fill out the appropriate forms. 

TurboTax is made by the business software company Intuit. 

Users can choose between different TurboTax versions (e.g., TurboTax Free Edition for simple tax returns or TurboTax Premier for individuals with investments and/or income from rental property) and levels of support (e.g., tax professionals help in real-time). 

Is TurboTax a Scam?

No, TurboTax is not a scam. It’s a legitimate tax preparation software. 

However, its reviews are mixed. 

TurboTax gets generally positive reviews from third-party sites:

• PCMag gives it a rating of 5.0 out of 5.0 (“Outstanding”). 
• NerdWallet gives it a rating of 5.0 out of 5.0. 
• CNET says, “If you want to get your taxes done quickly with as little headache as possible, TurboTax is a top choice.” 

That said, almost all third-party sites note that it is possible to get similar offerings from competitors who may provide better value. 

User reviews are more mixed:

• 1.2 out of 5.0 stars (from 754 reviews) on Trustpilot.
• 4.2 out of 5.0 stars (from 318,404 reviews) on Google Play.
• 4.8 out of 5.0 stars (from 938,013) on the App Store. 
• 1.1 out of 5.0 stars (from 505 reviews) on Sitejabber.
• 1.3 out of 5.0 stars (from 3,620 reviews) on Consumer Affairs. 

People complain about incorrect tax calculations, billing issues, unexpected charges, and poor customer service. 

On online forums like Reddit, most people report negative experiences with TurboTax. 

Several people report that TurboTax “messed up” their taxes. 

Many people also say that TurboTax hides its fees until you’re halfway through your taxes. 

In 2024, the FTC issued an opinion that Intuit engaged in deceptive advertising by falsely promoting its tax filing services as “free” (for which many consumers were not eligible) and issued an order banning such claims unless the product is genuinely free for all or clearly discloses who qualifies.

TurboTax and other tax preparation services companies lobby the government to stop Americans from being able to file their taxes for free. 

In 2025, Intuit successfully lobbied to shut down the IRS’s free Direct File tax program. 

A minority of people say they’ve had no issues with TurboTax. 

Security

Below is some information about TurboTax security.

Security features

On its security page, TurboTax says that security is built into everything they do. 

TurboTax protects your financial and personal data with industry-standard encryption and has a responsible disclosure program where security researchers can report vulnerabilities. 

The company also offers two-factor authentication and biometric authentication for its app.

It also monitors your account. It will notify you if it spots anything suspicious, like unusual login attempts. 

See our “Is TurboTax safe?” review for more information. 

Intuit breach and lawsuit 

In 2024, Intuit (the producer of TurboTax) experienced a data breach. 

The company is now facing a proposed class action lawsuit for negligent cybersecurity. 

According to the lawsuit, Intuit did not provide enough details about the breach and waited too long to notify those affected. 

The lawsuit also says that the breach “appears to be “part and parcel” of a pattern of inadequate data security for the company,” including a 2021 “account takeover” attack.  

Scams

Criminals often impersonate Intuit and TurboTax in social engineering scams, particularly during tax season. 

TurboTax provides information on its site on how users can spot and report these kinds of scams. 

Privacy 

Intuit (maker of TurboTax) explains the kind of information it collects, why, and with whom it shares it in its privacy policy. 

This policy applies to TurboTax and Intuit’s other products, such as QuickBooks, Credit Karma, and Mailchimp. 

Intuit collects the following personal information: 

• Government IDs, e.g., Social Security numbers, driver’s licenses, passports.
• Contact details, e.g., name, address, phone number, email address.
• Biometrics, e.g.,  facial recognition, keystroke data.
• Relationship information, e.g., demographics, preferences, education, employment.
• Transaction information, e.g., purchase history, customer service records.
• Inferred data, e.g., internal scores, behavioral predictions.
• Online data, e.g., IP addresses, cookies, device/browser data.
• Audio/visual data, e.g., call recordings, CCTV footage, voicemails.
• Financial information, e.g., bank details, tax refunds, credit reports.
• Geolocation, i.e., precise location from devices.
• Compliance data, e.g., legal, audit, or regulatory information.

It uses this data for identity verification, fraud prevention, customer service, product delivery, marketing, analytics, personalization, legal compliance, dispute resolution, internet training, audits, and reporting. 

Intuit shares your information with service providers, affiliates, government agencies as required by law, financial institutions or partners (at your direction), and third-party marketing or tech vendors. 

Intuit does not sell your personal information, but it shares data with partners for business purposes.

Data is retained according to Intuit’s internal retention policy, even after deletion requests, until the retention period ends.

Terms of Service; Didn’t Read (ToS;DR), a project that rates internet services’ terms of service and privacy policies, hasn’t graded Intuit at the time of writing. 

However, it notes a few potential issues. These include:

• You are forced into binding arbitration in case of disputes.
• Instead of asking directly, Intuit assumes your consent merely from your usage.

The Common Sense Privacy Program, which rates internet services privacy policies, gives TurboTax a rating of 52% out of 100%. This is a “Warning” rating that means TurboTax “Does not meet our recommendations for privacy and security practices.”

Some of the issues flagged include the following:

• TurboTax displays personalized advertising.
• Third parties collect data for their own purposes.
• User information is used to track and target advertisements on other third-party websites or services.
• Data profiles are created and used for personalized advertisements.

On the plus side, the Common Sense Privacy Program says that TurboTax does not sell or rent your personal information to third parties. It also doesn’t share your personal data for third-party marketing. 

However, according to The Washington Post article, TurboTax asks for your permission to share your financial details for targeted advertising purposes when helping you file taxes. 

You can adjust your privacy preferences in your account settings.

You can see your tax data via your TurboTax account, which is also where you can download a copy of your return. 

So, Should You Use TurboTax?

Depends. 

TurboTax can be a good option if you value ease of use and are okay with paying for convenience, have complex taxes, or want to talk to a real tax pro. 

It may not be the best option if you qualify for free filing and don’t want to be upsold or if you’re concerned about Intuit’s past security issues. 

How to Use TurboTax Safely and Privately

• Create a strong password. Ensure your TurboTax account password is unique (i.e., you haven’t used it elsewhere) and complex (i.e., letters, numbers, symbols, etc. Avoid using your personal information). 
• Turn on two-factor authentication (2FA). TurboTax offers two-factor authentication. Turn this on to make your TurboTax account more secure. With 2FA, even if someone knows your password, they still won’t be able to log in because they’ll need to authenticate using another method. 
• Watch out for upsells. TurboTax will try to steer you into paid versions of its service, even if you qualify for free filing. Make sure to decline optional extras unless you actually need them. 
• Limit information sharing. Link necessary accounts only and opt out of sharing your personal information for marketing purposes through your TurboTax account settings.
• Review privacy settings. Review and adjust your privacy preferences (e.g., restrict targeted ads) to control how your personal information is used. 
• Monitor TurboTax account activity. Review your TurboTax account periodically for any unusual activity. 
• Limit retention of sensitive details. After you file your taxes, download a copy of your return and then delete any unnecessary sensitive data from your TurboTax account.
• Use encrypted connections. Avoid accessing your TurboTax account via public Wi-Fi. Only ever use TurboTax over a secure, encrypted internet connection. 
• Log out of your account. At the end of every TurboTax session, log out of your account. 
• Familiarize yourself with Intuit’s privacy policy. Read Intuit’s privacy policy to know how the company will use your data, how it will store it, and with whom it will share it. 
• Delete your account. If you don’t plan to use TurboTax again.