Who Owns TurboTax?

TurboTax's origins trace back to a product called TaxView, developed by a company called Chipsoft in 1984. Chipsoft was founded by Michael Chipman in San Diego, California, and TaxView was one of the first personal computer-based tax preparation programs. Intuit acquired Chipsoft in 1993, bringing TaxView (which had been renamed TurboTax) into its portfolio alongside Quicken (personal finance software) and QuickBooks (small business accounting).

The timing of the acquisition was strategic. The early 1990s saw rapid growth in personal computer ownership, and Intuit recognized that tax preparation software had enormous potential as a mass-market product. TurboTax's step-by-step interview format, which guided users through the tax preparation process with plain-language questions, made it accessible to people without accounting expertise.

Throughout the 1990s, TurboTax grew rapidly to become the best-selling tax preparation software in the United States. The product's success was driven by its user-friendly interface, its ability to import data from Quicken (allowing users to automatically populate tax forms with their financial data), and its comprehensive coverage of federal and state tax forms.

A significant milestone came in 1999 when TurboTax launched its online version, allowing users to prepare and file taxes through a web browser without installing software. This was a major shift in the product's delivery model and positioned TurboTax for the internet era. The online version also introduced a new revenue model based on per-filing fees rather than software purchases.

In the early 2000s, TurboTax faced a significant controversy when Intuit introduced product activation requirements and limited the number of times the software could be installed. The backlash from users was severe, and Intuit reversed course, removing the activation requirements. This episode highlighted the importance of customer trust in the tax software market.

TurboTax's growth accelerated through the 2010s as mobile devices became ubiquitous. The TurboTax mobile app, launched for iOS and Android, allowed users to prepare and file taxes from their smartphones, including a feature that allowed users to photograph their W-2 forms and automatically import the data. This mobile capability significantly expanded TurboTax's reach.

In 2019, Intuit launched TurboTax Live, a service that combined TurboTax's software with access to live CPAs and enrolled agents who could review returns and answer questions in real time. This hybrid model addressed a key concern among users who wanted the convenience of software but the assurance of professional review. TurboTax Live has been one of the fastest-growing segments of the business.

TurboTax has also been at the center of controversy regarding the IRS Free File program. Intuit and other tax software companies agreed to offer free tax filing to eligible taxpayers through the IRS Free File program, but were accused of using deceptive practices to steer eligible users toward paid products. In 2022, Intuit agreed to pay $141 million to settle claims from all 50 states related to these practices.