A number of everyday folks across Ontario — hardworking, tax-paying, kid-raising families — are suddenly getting slapped with jaw-dropping reassessments from the Canada Revenue Agency (CRA). We’re talking about surprise bills in the $10,000 to $14,000 range. Yikes.
At the centre of the storm is Jessica Medrano, a mom from Toronto who’s been faithfully using TurboTax for years. But this year, she opened her mailbox and nearly fell over. CRA had reassessed her taxes from three different years and decided her family now owed over $14,000 in taxes. The alleged culprit? An issue with how TurboTax handled a form tied to Ontario’s Child Care Tax Credit — a benefit introduced during the pandemic.
Read More: Find the best tax software to help you file by the CRA deadline of April 30, 2025
Was it a critical error made by the tax software?
Here’s where it gets murky. Users like Medrano and another mom, Andrea Aveiro from Bolton, ON, say TurboTax’s software made a critical error: it allegedly calculated child care expenses based only on the lower-earning spouse’s income.
Worse, some say the software even unchecked boxes automatically during filing — basically messing up without the user knowing.
These families are far from alone. Reddit, Facebook and TurboTax’s own forums are flooded with similar horror stories. It’s like a digital tax nightmare went viral.
Response from TurboTax
TurboTax, for its part, is saying, “Whoa, not so fast.”
Their spokesperson insists there is no glitch, blaming user input instead.
Still the popular tax software firm offered a refund to dissatisfied customers plus a chance to speak with tax experts. The company reminded tax filers that there are different tiers of tax filing — from basic, do-it-yourself options to a “guided experience,” where tax filers get insight and tips into potential savings and possible errors.
Should Canadians rely on the guidance of tax software?
The drama raises some real talk about trust and accountability.
According to the recent stories from these Ontario families, the reliance on a well-known tax tool, endorsed and marketed as “100% accurate” and “confidence guaranteed,” has left them fighting large tax bill reassessments. When you’re juggling parenting and changes to tax credits, you expect your tax software to steer you true — not push you into CRA debt.
What can Canadian tax-filers learn?
Over 90% of individual tax returns in Canada are filed electronically, according to the CRA. That’s about 30 million returns each year, and of those, more than 27 million are filed online via software or through tax professionals using electronic systems.
TurboTax is one of the most widely used consumer-facing platforms in Canada, along with other popular names like Wealthsimple Tax, UFile, and H&R Block.
To prevent a nasty surprise from the CRA, all Canadian tax filers should follow four steps, regardless of what system or process they use to file:
Double-check everything: Even if you’re using trustworthy tax software, take the time to understand the forms and what’s being submitted on your behalf.
Know your rights: If a software tool makes a mistake, don’t just eat the cost. Companies often have guarantees or refund policies — push for help or compensation should an issue arise.
When in doubt, go pro: For more complex tax situations (like child-care credits with special eligibility rules), it might be worth paying for guidance. This could mean paying for a top-tier electronic filing program or consulting a real human. Either way, paying a few hundred dollars to file an error free claim is worth it.
Speak up: Platforms like Reddit or Facebook aren’t just for memes — people use these forums to identify problems, realize when a situation isn’t an isolated incident and flag trends. There’s power in numbers, so use it!
Read More: Find the best tax software to help you file by the CRA deadline of April 30, 2025
Bottom line
The vast majority of Canadians file their taxes electronically, and the number is only growing each year. In this situation, the story isn’t just about taxes — it’s about how much we rely on technology to make life easier. When it fails — or when we fail to know the limits of technology — the fallout can be massive, both financially and emotionally. So, the real lesson is to never let software do your taxes on autopilot. Let it guide you but remember to always hold the reins.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
