One Reddit user in March 2025 issued a cautionary post in the r/VeteransBenefits and r/Army subreddits that reached active-duty and veteran individuals relatively quickly. The cautionary notice, “It’s Tax Season, Veterans! Don’t Use TurboTax!”, criticized TurboTax for taking advantage of troops using scam tactics. The caution has since caused the wider community of military personnel to debate tax filing options and turn their attention towards alternative solutions.
The complaints against TurboTax
Intuit’s TurboTax is among the most popular tax software packages in the United States. For years, it has been going around brashly boasting of being a military-friendly organization with discounts and free filing for members of the armed forces. Its claims are all lies, allege Bulls729 and fellow veterans.
Deceptive “Military Discount”
TurboTax promotes a “Military Discount” on its website, frequently using patriotic graphics to appeal to members of the military. But numerous users complain about being charged as much as $150 fees after being eligible to file for free under IRS guidelines.
The IRS Free File initiative provides free federal tax filing for those with incomes below $66,000 a year. TurboTax, however, is reported to steer customers toward paid versions of its software rather than the free alternatives they are eligible for.
Upselling and hidden fees
Veterans have complained to be upsold to add-ons such as “TurboTax Live” or “Audit Defense,” which cost exorbitant fees.
Other folks complain that TurboTax sabotages access to the genuinely free preparation and filing service and guides consumers instead toward a fee-paying program.
Veterans weigh in on TurboTax
The post to Reddit rapidly reached hundreds of points and hundreds of comments by vets who likewise shared the identical experience. Many of them were upset about actions at TurboTax, and other participants offered tips regarding how to avoid paying unwarranted charges.
- User experiences: Some veterans reported being charged fees after using TurboTax’s promoted “free” filing service. Some veterans also expressed grievances that they were misled by the site’s upselling strategy.
- Calls for action: Some commentators asked if it were possible to file a class-action suit against TurboTax for being deceptive.
Better options for military personnel
In the TurboTax controversy, some alternatives have been proposed as superior options to use by active-duty members and veterans when tax season comes around.
1. MilTax by military oneSource
MilTax is a Department of Defense initiative that offers free use of H&R Block’s Deluxe version tax software to service members and most veterans.
It provides free federal and state filing and supports complex military tax scenarios like combat pay exclusions and multi-state returns.
2. FreeTaxUSA
FreeTaxUSA provides free federal filing to everyone and costs very little (around $10) for the state return.
It is most appropriate for veterans with simple and complicated tax situations.
3. Volunteer Income Tax Assistance (VITA)
The IRS VITA program offers free basic tax return preparation for people with incomes of $67,000 or less.
Many VITA locations specialize in serving low-income individuals and veterans.
Primary tax issues for veterans
Veterans ought to know about special tax benefits that assist them:
- VA disability benefits are tax-free: Monthly VA disability compensation, pensions, and home adaptation grants due to disabilities are not considered taxable income. They do not have to be included on tax returns.
- Combat pay exclusions: Active-duty members may exclude certain forms of combat pay from taxable income, which can also impact eligibility for credits such as the Earned Income Tax Credit (EITC).
- Free filing options: The majority of veterans who earn less than $66,000 per year qualify for free federal filing under IRS rules.
Trust in tax programmes
The outrage surrounding TurboTax stems from deeper concerns about relying on commercial tax preparation software. TurboTax and other programs are convenient, but their business model too frequently is based on peddling extra products that tax filers don’t need. For young or first-time taxpayers—especially military taxpayers—this can translate into unwarranted fees.
Veterans such as the reddit user who started the thread have pointed out these routines in a bid to inform people about their choices at tax time. The post has also prompted other veterans to seek free or low-cost options such as MilTax and FreeTaxUSA.
Read more: Are veterans considered federal employees or members of the federal government?
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