TurboTax Glitches in 2025 Cause Massive Tax Confusion Across Canada: Users Report Unexpected Debts, Audits, and Filing Chaos

A Tax Season Gone Wrong for Thousands of Canadians

Tax season in Canada took a shocking turn in 2025 when a series of technical glitches in TurboTax, one of the country’s most popular tax filing platforms, caused widespread issues for users. Many Canadians who relied on the software to file their taxes correctly are now facing unpaid tax bills, audit notices, and reassessment letters from the Canada Revenue Agency (CRA).

Reports began surfacing in early April, with the glitch—internally dubbed Error 90308—affecting calculations related to tax credits, income reporting, and deductions. For users, this has resulted in not only unexpected financial burdens but also frustration and fear as they deal with the CRA.

What Went Wrong: The 2025 TurboTax Glitch Explained

Miscalculated Deductions and Reporting Failures

The root of the issue appears to stem from a software update that failed to properly calculate several common tax items. Some of the most frequently reported errors include:

• Incorrect amounts reported for Registered Retirement Savings Plan (RRSP) contributions
• Misapplication of education and tuition credits
• Errors in foreign income reporting
• Inaccurate tracking of self-employment income and expenses

For many, these mistakes led to incorrect refund estimates or tax balances. While TurboTax users believed their filings were complete and accurate, the CRA’s backend systems flagged many of the returns for inconsistencies.

CRA Responds with Reassessments and Audits

The CRA has sent out waves of reassessment letters and audit notices to affected users. Some taxpayers are now being told they owe thousands of dollars, while others are being fined for what appear to be late payments—even though their filings were made on time using TurboTax.

The situation is further complicated by the lack of clarity around how many users have been affected. Tax professionals estimate that tens of thousands could be impacted nationwide.

Canadians Left in the Lurch

Stories of Financial Shock and Emotional Stress

Across the country, TurboTax users are sharing their stories. One user in Calgary reported receiving a $6,500 bill from the CRA after the software failed to account for their foreign income correctly. Another in Montreal found out their education tax credits were denied due to a formatting issue in their submission.

For many, the glitch is more than a financial inconvenience—it’s an emotional and mental health challenge. Some users report sleepless nights, endless customer support calls, and difficulty understanding how to correct their returns.

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TurboTax’s Response and Public Backlash

Acknowledgement Without Accountability

TurboTax’s parent company, Intuit, issued a brief statement saying it is “investigating isolated reports of calculation issues affecting a small number of customers.” However, the company has not yet issued an apology, offered compensation, or committed to assisting affected users with CRA communication.

The lack of transparency has led to mounting criticism from both users and financial professionals. Tax advisors are urging users not to file with TurboTax until more information is released, and some have even called for a formal investigation by the Canadian government.

Tax Experts Call for Tighter Regulation of Tax Software

A Wake-Up Call for Digital Filing Oversight

Industry experts argue this incident highlights the need for regulation and quality assurance in the tax software industry. As millions rely on platforms like TurboTax to meet their legal tax obligations, even small errors can cause widespread harm.

Tax accountant Michael Drummond said, “This situation underscores a critical gap in oversight. Software companies must be held accountable when their tools fail and cause harm to everyday Canadians.”

What Affected Users Should Do Now

Steps for Navigating the Fallout

If you were affected by the TurboTax glitch in 2025, experts recommend taking the following actions:

• Log into your CRA MyAccount to check for reassessment letters or audit notices
• Review your submitted return manually to identify discrepancies
• Contact TurboTax customer support and reference Error 90308
• Consult a licensed tax professional for help amending your return or responding to CRA demands

Documenting all correspondence and gathering all supporting receipts and records will be crucial if you’re facing an audit.

Looking Ahead: Will TurboTax Rebuild Trust?

As the situation unfolds, many Canadians are left wondering whether TurboTax can recover from the loss of trust this glitch has created. While the software has long been a go-to solution for its ease of use and affordability, this year’s errors have proven that convenience cannot replace accuracy.

Unless Intuit takes swift and transparent corrective action, TurboTax’s reputation may be permanently damaged among Canadian taxpayers.