04.10.2025 By Ben Winters, Director of AI and Data Privacy, Consumer Federation of America

Protecting Your Privacy at Tax Time

Filing your taxes can be overwhelming, and most taxpayers just want to get it done quickly and correctly—while maximizing their refund. However, the process requires sharing sensitive personal information, making data privacy an important concern.

 

Tax Prep & Your Data: What You Need to Know

Many commercial tax preparation companies collect and use personal data beyond tax filing. Investigations have shown that some companies share taxpayer information with third parties, including social media platforms, for marketing and advertising purposes. This can include:

  • Earnings and financial details
  • Marital status and household information
  • Charitable giving and deductions

Tax preparation companies often use manipulative design practices—sometimes called "dark patterns"—to push users into services they may not need or unknowingly consent to data sharing. This can include misleading "free filing" offers that result in hidden fees or upselling financial products.

How to Protect Yourself

  • Ignore IRS Impersonation Scams – The IRS will never contact you via text or email demanding payment or promising refunds. Report suspicious messages and verify directly at IRS.gov.
  • Give Yourself Time – Rushing through tax prep increases the chances of overlooking privacy settings. Carefully review data-sharing agreements before checking any boxes.
  • Use Trusted, Free Filing Options – The IRS Direct File program is available in nearly 30 states, offering a secure way to file directly with the IRS without involving third-party companies. If you qualify, use an IRS-approved Free File provider for a safer alternative.

At America Saves, we believe in empowering individuals to make informed financial decisions—including protecting personal information at tax time. Learn more about trusted tax-time resources at IRS.gov.  

Make a Commitment to Save with the America Saves Pledge

One of the best ways to stay on track with your savings goals is to make a commitment! Take the America Saves Pledge, choose a savings goal that matters to you, and receive ongoing support, tips, and reminders to help you stay motivated.

Take the Pledge today!

Tax time is one of the best opportunities to take control of your finances—from protecting your personal information to using your refund to build a more secure future. Take the steps today to protect your data, make the most of your refund, and commit to your savings goals!

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For more information on tax time privacy, view The Privacy Tax– How Consumers Face Increased Data Collection, Dark Patterns, and Increased Scam Risk, Come Tax Time from the Consumer Federation of America.

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