For countless Canadians, filing taxes is already a stressful annual obligation. But for many users of TurboTax, the popular tax preparation software, the 2025 tax season turned into a financial nightmare. Due to a critical glitch labeled Error 90308, users are now reporting unexpected audits, thousands of dollars owed to the Canada Revenue Agency (CRA), and in some cases, hefty penalties.
This widespread issue has left many wondering how such a significant error could occur in a trusted digital platform—and what recourse, if any, they have.
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The Root of the Problem: What Is TurboTax Error 90308?
A Software Glitch That Miscalculated Deductions
The error, internally tracked by Intuit (TurboTax’s parent company) as Error 90308, appears to have miscalculated key tax credits and deductions for many filers. Affected areas include:
- Improper claims for tuition or education credits
- Overstated RRSP contributions
- Incorrect application of foreign income exemptions
As a result, these returns were flagged by the CRA’s automated systems for discrepancies, triggering reviews, audits, and reassessments.
Canadians Hit Hard: Real Financial Fallout
Thousands in Unexpected Tax Bills
TurboTax users have reported sudden notices from the CRA informing them of unpaid taxes, interest, and even fines. Many were blindsided:
- Some received reassessment notices demanding repayment of $3,000 to $10,000
- Others faced late filing penalties, even though they submitted their returns on time using the software
The emotional and financial toll has been significant, especially for users who relied on TurboTax’s “Maximum Refund Guarantee” and trusted its software to accurately handle their filings.
Audits and Penalties Following the Error
Dozens of Canadians say they are now facing full audits, which can be both time-consuming and intimidating. Many are being asked to provide receipts, records, and explanations for discrepancies that weren’t their fault to begin with. The CRA has not commented publicly on whether it will offer leniency to those affected by this specific software issue.
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TurboTax Responds, But Critics Say It’s Not Enough
In a brief statement, Intuit acknowledged that “a small number of users may have experienced calculation discrepancies” and promised to investigate. However, the company stopped short of:
- Admitting direct responsibility
- Offering financial compensation
- Assuring affected users of CRA cooperation
Customer frustration has exploded on social media, with hashtags like #TurboTaxFail and #CRAError90308 gaining traction.
Experts Call for Oversight and User Protection
Tax professionals are now urging the federal government to investigate how such a major failure occurred in one of the most widely used tax tools in Canada.
“People trust software to simplify complex tax systems,” said one Toronto-based accountant. “But when that trust is broken, it creates real harm. There needs to be accountability.”
Some experts are calling for new legislation to require greater transparency and liability from tax software providers, especially as more Canadians move away from traditional tax preparation services.
What Should Affected TurboTax Users Do?
Immediate Steps to Take
If you were impacted by this issue, here’s what tax advisors recommend:
- Log into your CRA account to review your current return status and reassessments
- Contact TurboTax support and file a formal complaint referencing Error 90308
- Speak with a tax professional or accountant to understand your rights and options during an audit or reassessment
- Document everything, including your original TurboTax filing confirmation and CRA notices
Long-Term Lessons for Taxpayers
While TurboTax has been a go-to platform for millions, this incident serves as a harsh reminder that tax software isn’t foolproof. Even automated tools need to be double-checked—especially when dealing with deductions or non-standard income sources.
Final Thoughts: A Tech Breakdown with Human Costs
What began as a convenient, user-friendly way to file taxes quickly became a nightmare for many Canadians this year. With trust shaken and thousands now scrambling to settle with the CRA, TurboTax may be facing more than just technical issues—it may be facing a long-term credibility crisis.