When you see an ad or read a description stating "free," you expect "free," right? The Federal Trade Commission says that's not the case.
The FTC accuses Intuit - the company behind Turbo Tax - of having a "deceptive advertising campaign" for years. The agency claims the company ran ads "knowing that they led consumers to believe that they could file their returns for free", when in fact, many filers were not eligible for the free program and wound up paying for upgrades or premium services to file.
This is the second time the FTC has taken action against Intuit. In 2022, the agency claimed Turbo Tax's "file FREE" claims misled people because most people didn't qualify for the advertised "$0 to file".
Now, the FTC is directing Intuit to stop making any "free" claims that could be misleading. It was ruled the company cannot advertise services as "free" unless all customers qualify for free or the ad clearly states who would qualify. Intuit is appealing the ruling.
For consumers, the big question remains: what options are there for consumers to file their taxes for free?
- If your adjusted gross income was $79,000 or less, you could use the IRS Free File Program
- If your adjusted gross income was $64,000 or less, you have a disability, or you don't feel comfortable speaking English try the Volunteer Income Tax Assistance - another IRS program
- MilTax is the Department of Defense's free filing program for servicemembers or veterans
- New this year, the IRS launched the Direct File pilot. For the first time, taxpayers can file their federal returns online for free through a government website. Arizona is one of several states which joined the pilot program, meaning residents can file their state returns for free using government software.
- State tax agencies may be able to offer additional help to file state taxes.
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