Is TurboTax Safe?

If you use or plan to use TurboTax, you need to know: Is TurboTax safe? 

Below, we explain whether TurboTax is: 

• Safe to use. 
• Good for privacy. 

We also look at some steps you can take to improve both your safety and privacy when using this online service. 

What Is TurboTax?

TurboTax is a popular tax preparation software developed by Intuit that is designed to help individuals and small businesses file their federal and state income tax returns.

It offers an easy-to-use, step-by-step process that guides users through their tax forms, helping them maximize deductions and ensure accuracy in their filings.

TurboTax is known for its intuitive, user-friendly design. It asks users questions about their income, expenses, and life events and then uses this information to fill out the appropriate tax forms.

TurboTax offers different versions tailored to various tax situations, including TurboTax Free Edition for simple tax returns (1040 only), TurboTax Deluxe for focusing on maximizing deductions and credits, and TurboTax Premier, which is designed for those with investments and rental property income.

TurboTax offers various levels of support, including access to a tax expert or CPA, audit support, and a comprehensive help section. Some versions also include live help from tax professionals.

Is TurboTax Safe?

Depends on your definition of “safe.” 

Intuit, the company behind TurboTax, is facing a class action lawsuit for allegedly failing to protect customer data during a recent data breach. The lawsuit claims that Intuit neglected industry-standard cybersecurity measures, resulting in the exposure of users’ personally identifiable information (PII) to cybercriminals.

That said, TurboTax has been a trusted tool for tax preparation for many years and is used by millions of people annually. 

It has several security features in place, including:

• Industry-standard encryption (128-bit or higher) to protect your personal and financial information. 
• Two-factor authentication, which adds an extra layer of security to your account. When enabled, you’ll need to provide a second form of verification (like a code sent to your phone) in addition to your password to access your account. 
• Biometric authentication (fingerprint or facial recognition) on capable devices when accessing the TurboTax app.

In addition, TurboTax monitors your account for suspicious activity and may notify you of any unusual login attempts or changes to your account.

Intuit also has a responsible disclosure program where they encourage security researchers to report vulnerabilities in their systems or products. 

TurboTax users are frequently targeted in account takeover attacks. In these incidents, attackers gain unauthorized access to a user’s account, typically by exploiting credentials stolen from other platforms during data breaches. It’s important to never reuse passwords across online accounts. 

Scammers also like to impersonate TurboTax in phishing attacks. TurboTax has information on its website educating users about these scams, urging them to verify communications and to report suspicious messages.

Is TurboTax safe, according to Reddit?

The general consensus among Redditors seems to be that TurboTax is safe to use. 

The main issue Redditors have with TurboTax is that TurboTax’s parent company, Intuit, lobbies heavily to prevent the government from offering free, simplified tax filing systems. 

TurboTax is also often criticized for being overpriced, with many users feeling tricked by the company’s upselling tactics. Despite advertising free filing options, TurboTax frequently nudges users toward paid services even if they qualify for free ones.

Is TurboTax free safe?

Yes, TurboTax free is typically considered safe to use for basic tax returns. 

TurboTax uses strong encryption and follows industry-standard security practices. The platform is widely used, which contributes to its overall reputation for safety.

However, in 2024, the Federal Trade Commission (FTC) ruled that TurboTax engaged in deceptive advertising by promoting its tax filing services as “free” when, in reality, many customers didn’t qualify for the free version. 

Is TurboTax screen share safe?

Yes, screen sharing through TurboTax is generally considered safe. 

During a screen share, tax experts can’t see you, your home, or your screen’s content outside of TurboTax. 

Ensure the screen-sharing session is initiated directly from within the official TurboTax platform, not from a third-party link or source, to avoid phishing or scams.

Is TurboTax Max safe?

Yes, TurboTax Max, an add-on service that offers additional benefits like audit defense, identity theft monitoring, and priority care from TurboTax, is generally considered safe since it is integrated directly into the TurboTax software. 

Is TurboTax Private?

Again, depends on your definition of “private.” 

TurboTax takes measures to safeguard your data, but its parent company, Intuit, Intuit, is facing a class action lawsuit for allegedly failing to secure customer data, leading to a data breach (which occurred in 2023-24). The plaintiffs argue that Intuit ignored established industry guidelines and delayed notifying affected customers about the breach.

Many users are also frustrated by how TurboTax handles data-sharing consent. 

According to an article in The Washington Post, while helping you file taxes, TurboTax asks for your permission to share personal financial information for advertising purposes. TurboTax presents this request in a seemingly harmless way, but agreeing to it allows the company to use and share your sensitive financial data, like income and debts, for targeted ads over several years. 

You can manage these preferences in your account settings.

TurboTax retains your tax return data to comply with legal obligations and for potential future use, such as when you need to access previous returns. The retention of this data is standard for most tax preparation services but is something to consider if you’re particularly concerned about long-term data privacy.

You can access your tax data through your TurboTax account and have the option to download a copy of your return. 

Intuit allows users to request deletion of their personal data under certain circumstances, though some data may be retained as required by law (e.g., tax records for audit purposes).

TurboTax offers some control over your privacy settings, allowing you to manage how your data is used for marketing and other purposes. For example, you can opt out of receiving promotional communications from Intuit.

In its privacy policy, TurboTax outlines the types of information it collects from users and how the information is handled. 

TurboTax’s privacy policy has not been reviewed by an external review site such as Terms of Service; Didn’t Read at the time of writing.

How to Improve Your Safety and Privacy On TurboTax

Follow the steps below for a more private and secure experience while using TurboTax. 

• Use strong, unique passwords. Use a unique, complex password for your TurboTax account to reduce the risk of unauthorized access. Consider using a password manager to generate and store your passwords securely.
• Enable two-factor authentication (2FA). Add an extra layer of security by enabling two-factor authentication in your TurboTax account settings. This requires a second form of verification, such as a code sent to your phone, in addition to your password.
• Limit data sharing. Review linked accounts and be cautious about linking other financial services to TurboTax. Only link necessary accounts, and opt out of sharing your data for marketing purposes in your account settings.
• Review privacy settings. Adjust your privacy preferences within TurboTax to control how your data is used. Look for options to limit data sharing with third parties and restrict personalized advertising.
• Be selective with third-party services. Carefully select integrations and avoid using services that collect more data than necessary. Ensure that any third-party services you use have strong privacy policies.
• Monitor account activity. Regularly check your TurboTax account for suspicious activity or unauthorized logins. Pay attention to notifications about unusual activity and review them promptly.
• Limit retention of sensitive data. After filing your taxes, download a copy of your return for your records and delete any unnecessary sensitive information from your TurboTax account.
• Use encrypted connections. Ensure that you’re using TurboTax over a secure, encrypted internet connection. Avoid using public Wi-Fi to prevent potential data interception.
• Log out after use. Always log out of your TurboTax account after completing your tax filing, especially if you’re on a shared computer.
• Understand the privacy policy. Take the time to read TurboTax’s privacy policy to understand how your data is used, stored, and shared. This can help you make informed decisions about the information you provide.