TurboTax’s “Military Discount” Deceives US Service Members Into Paying to File Taxes

TurboTax has long held itself out as a proud supporter of the US military.  As part of that image, TurboTax aggressively promotes its purported “military discounts,” wherein it promises discounts and free services for active US military service members and reservists.  However, according to a recent ProPublica investigation, TurboTax’s promises to military service members are deceptive, to say the least, as service members filing through TurboTax’s Military webpage are misled into paying for services that should be free.

Pursuant to the IRS’s Free File program, which TurboTax participates in, taxpayers with an adjusted gross income of $66,000 or less are entitled to free tax filings.  Thus, many service members are entitled to entirely free tax filings on that basis alone.  Nonetheless, according to ProPublica’s reporting, TurboTax’s Military webpage directs users to paid products, instead of the free products it promotes and that many service members are entitled to under the Free File program.  As a result, service members are allegedly often deceived into paying TurboTax for its services, despite being promised free services by TurboTax and being eligible for free filing under the IRS’s program.  It is currently unclear how many service members TurboTax has deceived into paying more than they otherwise should have to file their taxes.

The attorneys at Finkelstein, Blankinship, Frei-Pearson & Garber, LLP have successfully prosecuted numerous consumer protection class actions nationwide and are currently investigating TurboTax’s purported “Military Discounts.”  If you or someone you know is a US military service member or reservist and has paid TurboTax to file taxes, please contact us immediately to discuss your options.