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Which Tax Prep Companies Share Your Data: The Transparency Score Breakdown

Not all tax preparation companies treat your privacy equally. Some truly protect your data — and others quietly monetize it through marketing partnerships and analytics sharing. Today, we break down which companies explicitly commit to NO DATA SHARING — and which ones treat your tax return like a revenue stream.

This is the data-privacy report every taxpayer should read before filing.

The “Your Data Is Not For Sale” Tier (Strongest Protection)

These companies clearly state that your tax data is never sold or shared with third-party marketing services.

1. IRS Free File (via IRS partners)

  • Governed by federal privacy law
  • No commercial sale of tax data
  • Limited data use for IRS-required processing only

2. VITA/TCE Programs

  • Volunteer Income Tax Assistance / Tax Counseling for the Elderly
  • Community nonprofit and IRS-regulated
  • No commercial data sharing
  • Staff and volunteers trained under IRS confidentiality rules

These services exist to help taxpayers — not data-mine them.

The “We Use Your Data Internally” Tier (Acceptable, but not perfect)

These companies restrict data sharing to internal services and essential tax-processing partners.

3. FreeTaxUSA

  • Affordable platform with good privacy posture
  • Limited sharing to payment processors and security vendors
  • No widespread marketing partnerships with personal data exposed

4. TaxAct

  • Historically strong privacy stance
  • Data shared internally and only for tax-filing related services
  • No documented history of mass third-party data monetization

Generally safe — but always read their current privacy terms before filing.

The “Marketing and Analytics Sharing” Tier (Warning Level)

These companies have historically shared user data with external tech platforms such as Meta and Google for “tracking and optimization” — including financial data fields.

5. TurboTax (Intuit)

  • Multiple investigative reports have shown data shared with platforms like Meta and Google
  • Used for conversion tracking, marketing efficiency, and customer profiling
  • SSN and income not shared, but dependent counts, filing status, and refund estimate may be

This may not feel like a breach — but it is a privacy exposure.

6. H&R Block

  • Has partnered with third-party analytics and marketing services
  • Certain taxpayer data used for targeted advertising and audience measurement
  • Some behavioral pattern data may be shared without explicit user awareness

These companies rely heavily on digital advertising — and your tax data powers it.

The “Opaque Data Policy” Tier (Highest Risk)

Any company that does not clearly define data protections should raise immediate skepticism.

7. Discount or Unknown “Free” Tax Sites

Examples:

  • little-known tax-filing startups
  • offshore-based software
  • browser-based free tax filing utilities

Red Flags:

  • unclear corporate ownership
  • privacy policy written vaguely or ambiguously
  • data sharing clauses hidden in long legal paragraphs
  • unclear data-retention policies
  • no explicit encryption declaration

If a company feels sketchy — trust your instinct and leave.

How These Companies Justify Sharing Your Data

Companies that engage in behavioral data extraction often use these phrases:

  • “We may share anonymized data with marketing partners”
  • “We use third-party analytics to improve user experience”
  • “We may provide data to affiliated service providers”
  • “We may share information that does not directly identify a user”

Translation:
They are sharing patterns from your filing — and building marketing profiles from it.

For advertisers, knowing your refund amount or income range is pure gold.

How to Protect Yourself

Before filing, always:

  1. Read the Privacy Policy
  2. Search “data sharing” inside the document
  3. Confirm MFA (multi-factor authentication)
  4. Confirm encryption at rest and in transit
  5. Ask customer service if they sell or share user data

If they can’t answer directly, don’t file with them.

The Ultimate Test

Ask the company this one question:

“Do you profit directly or indirectly from the use or sale of taxpayer data?”

If the answer is anything other than No, move on.

Your tax return is a blueprint of your financial identity.
It contains:

  • your Social Security number
  • your employer
  • your dependents
  • your income history
  • your bank information
  • your eligibility for credits
  • your refund amount

Some companies protect this as sacred.
Others treat it as an advertising asset.

Choose wisely.

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