How TurboTax Really Makes Money — And Why It Matters to You

TurboTax is one of the most widely used tax software platforms in the United States, holding an estimated 70% market share among self-filers. Owned by Intuit, a company valued at over $100 billion, TurboTax is often marketed as a free or low-cost way to file your taxes quickly and easily.

But according to an investigation discussed on The Fine Print podcast by Ramsey Personality George Kamel, the real cost of using TurboTax may have less to do with filing fees—and more to do with how your financial data is used.

The Business Behind “Free” Tax Software

Intuit doesn’t just own TurboTax. Its portfolio also includes QuickBooks, Mint, and Credit Karma—all platforms that collect detailed financial information from users.

During Intuit’s 2020 Investor Day, the company outlined a long-term strategy focused on monetizing customer data. The presentation described how financial information gathered through TurboTax could later be used to market loans, credit cards, and other debt-based products.

In the podcast, George highlights an example from that presentation: a retail worker named Tracy. After filing taxes for several years using TurboTax’s free service, Tracy began receiving targeted credit card offers—including one timed to help finance her wedding. Intuit reportedly earned a bounty when she signed up.

A bounty, by definition, is a payment for capturing a target. In this case, the target was a taxpayer.

From Tax Filing to Debt Marketing

Dave Ramsey explains that while TurboTax may have started with good intentions, the shift toward using tax data as a lead-generation tool changed the company’s direction.

Banks and financial institutions make enormous profits from consumer debt. Credit cards, personal loans, and financing offers are highly lucrative—and TurboTax and Credit Karma are positioned to funnel users directly into that system.

In 2020, Intuit acquired Credit Karma for $8.1 billion. According to Ramsey, the value wasn’t just in offering free credit scores, but in the behavioral data that allows companies to craft highly effective offers designed to push users toward borrowing.

When the Software Fails the User

Beyond data concerns, the investigation also highlighted service failures.

A TurboTax user named Christopher shared how his tax refund was delayed for months because the software failed to prompt him to submit a required 1095-A form. The delay not only held up his refund but also disqualified him from receiving a stimulus payment.

While the IRS flagged the issue, TurboTax was unable to resolve it. Christopher had to file an amended return on his own.

In this case, even the IRS proved more helpful than the software designed to simplify taxes.

A Better Approach to Taxes

The takeaway from the investigation is simple: no company should profit from selling your tax data to push debt products.

For many taxpayers, this raises an important question—who is actually looking out for your best interests when you file? While tax software can be helpful for basic situations, it operates on automated logic and preset rules. It can’t ask deeper questions, provide judgment-based advice, or step in when something doesn’t look right.

That’s where working with a real tax professional makes a difference.

At Leading Edge Accounting Solutions, taxes aren’t treated as a data point or a marketing opportunity. They’re handled by experienced professionals who take the time to understand your full financial picture, explain your options clearly, and help you make informed decisions—without hidden agendas.

📞 Schedule a call with Leading Edge Accounting Solutions to discuss your tax situation with a real person, ask questions, and get guidance tailored to you—not an algorithm.

Because when it comes to your taxes, confidence comes from clarity—and clarity comes from expert advice.