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:
Read the Privacy Policy
Search “data sharing” inside the document
Confirm MFA (multi-factor authentication)
Confirm encryption at rest and in transit
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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