If you’ve seen TurboTax’s “free free free free” commercials, you may think that TurboTax is . . . well . . . free. But if you’ve USED TurboTax, that might not have been true. And now, they’re in trouble for that.
The Federal Trade Commission has sued Intuit . . . the company behind the TurboTax software . . . arguing that its “free” claim is a bait-and-switch, since two-thirds of Americans are NOT eligible for TurboTax’s free service.
Basically, the only way your filing is free is if you have a “simple” return, which doesn’t include additional documents . . . like a 1099 for a side hustle or working in the “gig economy” . . . claiming additional earnings . . . reporting a student loan . . . or some write-offs. Those kinds of things trigger fees when you go to file.
The FTC is asking a court to stop Intuit “from engaging in deceptive acts or practices” in its marketing and advertising for TurboTax.
In response, Intuit said it will “vigorously challenge” the FTC’s complaint, and they argue that 17 million taxpayers filed for free with TurboTax last year.
