Every year, millions of Americans dread tax season—not just because they owe money, but because the filing process is an expensive, confusing mess. And that’s not an accident. TurboTax (owned by Intuit) has spent decades lobbying to make sure taxes stay complicated—so they can profit from it.
At Otto, we believe creatives and small business owners deserve better. So, let’s break down how TurboTax is disadvantaging everyday Americans, what they’ve done to block free and easy tax filing, and what you can do about it.
In most developed countries, taxes are automatic—the government sends you a pre-filled return, and you either confirm it or make small corrections. No need for third-party software, no unnecessary fees.
The U.S. could easily adopt the same system, but TurboTax spends millions lobbying to prevent that from happening. Why? Because if taxes were simple, TurboTax wouldn’t be able to charge you for something that should be free.
For years, they have worked behind the scenes to block the IRS from creating a government-run filing system, ensuring that Americans remain dependent on private tax software.
TurboTax technically participates in the IRS’s Free File program, which offers no-cost tax filing for low-income Americans. But here’s the catch:
In 2024, the Federal Trade Commission (FTC) found that Intuit, the maker of TurboTax, used deceptive advertising techniques by promoting “free” tax preparation services that were not actually free for many consumers.
After years of taxpayer advocacy, the IRS finally launched a pilot program for Direct File—a free, government-run tool that allows taxpayers to file their returns directly with the IRS, no TurboTax required.
Predictably, TurboTax hates this idea and is aggressively lobbying against it. Their argument? That the government shouldn’t “compete” with private tax preparers.
But let’s be real: the IRS offering a free filing option is not competition—it’s a basic public service. TurboTax’s opposition isn’t about fairness; it’s about protecting their $3.9 billion annual revenue at the expense of everyday taxpayers.
A simpler tax system means fewer people needing TurboTax—so the company actively fights against tax reforms that would make filing easier.
Their lobbying efforts help keep tax laws confusing so that taxpayers feel like they have no choice but to pay for professional help.
In other words, TurboTax doesn’t just profit off complexity—they help create it.
For freelancers, entrepreneurs, and small business owners, tax season is already stressful enough. TurboTax’s predatory practices make it even worse.
Instead of paying hidden fees for bloated software, creatives should have access to transparent, affordable, and genuinely helpful financial tools.
That’s why Otto exists—to give independent creators and small businesses the financial clarity they need, without the corporate tricks.
Also Read: W-9 Form Basics: Everything You Need to Know
Here’s how you can file taxes without falling into TurboTax’s upsell machine:
TurboTax has spent decades lobbying against the best interests of taxpayers, making billions off of a system they work to keep broken. But you don’t have to play their game.
The more people know about TurboTax’s lobbying and deceptive tactics, the more pressure there is to create a tax system that actually works for the people—not just for corporations.
Until then, know your options, avoid the traps, and keep more of your hard-earned money.
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If you have any further questions or need additional information, feel free to ask!
