“We just need your OK on a couple of things,” TurboTax says as you prepare your tax return.
Alarm bells should be ringing in your head at the innocuous tone.
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This is where America’s most popular tax-prep website asks you to sign away the ironclad privacy protections of your tax return, including the details of your income, home mortgage and student loan payments.
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Shira Ovide
Tech Friend writer Shira Ovide gives you advice and context to make technology work for you. Sign up for the free Tech Friend newsletter.
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With your permission to blab your money secrets, the company earns extra income from showing you advertisem*nts for the next three years for things like credit cards and mortgage offers targeted to your financial situation.
You have the legal right to say no when TurboTax asks for your permission to “share your data” or use your tax information to “improve your experience.” I’ll walk you through how to decline.
TurboTax says you might like financial ads tailored to your personal needs. It’s essentially a trade. That means you should get something you believe is worth the cost of sharing your tax return secrets.
But the company uses vague language about the terms of the deal. Maybe that shows TurboTax doesn’t think this is a fair trade for you.
A spokesman for Intuit, which owns TurboTax, said that people using the tax software have a “clear and transparent explanation" and that “nothing is hidden” when the company asks for permission to use your data for purposes other than filing your tax return.
By law and unless you say otherwise, TurboTax and other tax preparers can only use the financial information you provide to help you prep and file your tax return. That’s what you pay them for.
But TurboTax also wants your consent to disclose details from your tax return for other purposes.
For example, your income and debts might be used to personalize email pitches for a high-interest savings account or credit monitoring help from Credit Karma. (TurboTax and Credit Karma are both owned by Intuit.)
And with your permission, TurboTax will tell its Intuit sibling companies about other details such as your salary, the amount of your tax refund, whether you received a tax break for student loans and the day you printed your tax return.
Ask yourself if you believe Intuit will give you trustworthy financial advice and offers — and whether the company needs to use private details of your salary and retirement savings to advertise products to you.
The Intuit spokesman said the company “shares only the data necessary for the customer to be able to take advantage of the product or service they choose and only with approved third parties.”
TurboTax and the online tax prep service from H&R Block have been asking every year to blab your tax return. We’ve cautioned you about it for each of the past two tax filing seasons. (I focused only on TurboTax this year.)
I went through the process of prepping my own tax return with TurboTax. Even I found it a little confusing to understand what TurboTax was asking for permission to do with my data.
When you see the screen — “We just need your OK on a couple of things” — it’s time to be vigilant.
You’ll see that permission request once near the beginning of the tax prep process. If you skip it then, you’ll see the same screen again near the end. You’ll have to say yes or no to use information from your tax return for something other than filing your tax return.
Read carefully what TurboTax is asking.
If you read the FAQ documents, TurboTax is clear that your permission is voluntary to use your tax return information to sell you more financial products down the line. I don’t know how many people will bother to dig into the details.
If you refuse, TurboTax will still complete your tax return.
When I was asked to “Review and Sign,” I filled in my name and the date and clicked “No thanks.” Twice.
FAQs
You have the legal right to say no when TurboTax asks for your permission to “share your data” or use your tax information to “improve your experience.” By law and unless you say otherwise, TurboTax and other tax preparers can only use the financial information you provide to help you prep and file your tax return.
Is your tax return secret by law? ›
You are probably aware the law protects your tax return information from disclosure to other parties by the Internal Revenue Service. IRC Section 6103 generally prohibits the release of tax information by an IRS employee. However, there are important exceptions that you should be aware of.
Is TurboTax consent for use of tax return information? ›
Unless authorized by law, we cannot use your tax return information for purposes other than preparing and filing your tax return without your consent. The consents you'll review state that you agree to allow us to use your information to determine if certain products and services may benefit you.
Does TurboTax share your information? ›
The Intuit spokesman said the company “shares only the data necessary for the customer to be able to take advantage of the product or service they choose and only with approved third parties.” Even if you owe taxes and can't pay, file a tax return. Or you'll owe more. TurboTax and H&R Block now use AI for tax advice.
Is my information safe with TurboTax? ›
TurboTax securely stores your documents, and our encryption technology protects your personal and financial info, which helps prevent unauthorized access. We use the data you share with us to help you reach your financial goals while giving you choices on how we collect and share it.
Who has access to my tax return information? ›
The IRS can disclose your information to your state's taxing authorities if the state makes its request in writing. Your tax information can be provided to law enforcement, but only if law enforcement has a valid court order for accessing it.
Who can see your income tax return? ›
In general, the IRS may not disclose your tax information to third parties unless you give us permission. (Example: You request that we disclose information for a mortgage or student loan application.)
Can I decline the TurboTax consent form? ›
You do NOT need to give Intuit permission to try and sell you other products - which you may not need - in order to complete your tax return. If, like me, you don't want your tax data used for marketing, enter your name, today's date, click the "DECLINE" button.
Did TurboTax have a data breach? ›
Turbo Tax is reporting that its internal investigation revealed that these accounts were not breached via a compromise of their own systems but rather from criminal activity outside of their network.
Is it safe to file with TurboTax? ›
Protecting your personal info. We encrypt any of your data that we store, and when we electronically send your return to the IRS or state agencies, we use industry standard TLS encryption.
You have the legal right to say no when TurboTax asks for your permission to “share your data” or use your tax information to “improve your experience.”
Should I disclose tax info to intuit? ›
We cannot use your tax return information for purposes other than the preparation and filing of your tax return without your consent. You are not required to complete this form to engage our tax return preparation services.
Does TurboTax actually do your taxes for you? ›
You will be matched with an expert who understands your unique situation and is focused on getting you the best outcome. Your dedicated expert will make sure your taxes are 100% accurate and you get your max refund, guaranteed.
What is TurboTax in trouble for? ›
In an opinion and final order, the Federal Trade Commission ruled that Intuit engaged in deceptive practices by running ads claiming consumers could file their taxes for free using TurboTax — when in fact many taxpayers did not qualify for such free offerings. ( AP Photo/Gene J. Puskar, File) By WYATTE GRANTHAM-PHILIPS.
What is the downside of TurboTax? ›
TurboTax cons
Costs may be higher compared to other tax software options, most notably for the versions that cover specialty tax needs such as rental properties or self-employment. Some users may find that the level of automation leads to less direct interaction with a tax professional.
Is TurboTax getting investigated? ›
Intuit pulled its “free, free, free” ads in 2022, after the FTC and all 50 state attorneys general began investigating Intuit's advertising, but the company continued to tout free tax prep. Of course, for most customers, TurboTax wasn't free.
Are income tax returns confidential? ›
The IRS/FTB Exchange of Information Agreement prohibits disclosing information from the IRS to anyone other than the taxpayer or authorized representative. We cannot provide other states with copies of information we receive from the IRS.
Are IRS tax returns private? ›
Generally, tax returns and return information are confidential, as stated in Code section 6103. However, Code section 6103 allows or requires the Internal Revenue Service to disclose or give the information shown on your tax return to others as described in the Code.
Are income tax returns discoverable? ›
Under California law, plaintiffs enjoy what is referred to as a “tax return privilege.” The various statutes making it a misdemeanor for taxing authorities to disclose confidential tax return information (see e.g. Rev. & Tax. C. §§ 19542, 7056) impliedly creates this privilege.
Can employers see your tax returns? ›
When it comes to running a background check on employees, the level of screening will depend on the company's requirements and any relevant laws for the industry. On some occasions, some screening will include tax records. Basic background screening for entry-level jobs usually does not look at the individual's taxes.
