Under the terms of last year's settlement, Intuit Inc. "Today we are righting that wrong and putting money back into the pockets of hardworking taxpayers who should have never paid to file their taxes." What led to a TurboTax settlement?Īt the time of the May 2022 settlement, James said her investigation into Intuit was sparked by a 2019 ProPublica report that found the company was using deceptive tactics to steer low-income tax filers away from the free, federal services they qualified for – and toward its own commercial products instead. "TurboTax's predatory and deceptive marketing cheated millions of low-income Americans who were trying to fulfill their legal duties to file their taxes," James said in a Thursday statement. The amount paid to each eligible consumer ranges from $29 to $85 – depending on the number of tax years they qualify for. They will be notified by an email from Rust Consulting, the settlement fund administrator, and receive a check automatically.Ĭhecks will be mailed starting next week, and continue through the month of May. Who is eligible for the TurboTax settlement payments?Īll 50 states and the District of Columbia signed the May 2022 settlement, which was led by James.Consumers eligible for restitution payments do not need to file a claim, the New York Attorney's General Office said Thursday. Those impacted were low-income consumers eligible for free, federally-supported tax services – but paid TurboTax to file their federal returns across the 2016, 20 tax years due to "predatory and deceptive marketing," New York Attorney General Letitia James said. was ordered to pay $141 million to some 4.4 million people across the country. In a settlement last year, TurboTax's owner Intuit Inc. How do I find out more? Go to - Millions of Americans who qualified for free tax services – but were instead deceived into paying TurboTax for their returns – will soon get settlement checks in the mail. Those who filed using TurboTax for three consecutive years could get up to $85. Most consumers, the New York AG said, are expected to get between $29 and $30. How much will I get? The total amount is based on the number of tax years each user filed. MORE TAX NEWS: Middle Class Tax Refund: Early filers can amend 2022 returns to recoup taxes How will settlement money be distributed? Be on the lookout for a check from Rust Consulting, the fund administrator.ĭo I have to file a claim? No, eligible consumers will get a check in the mail without filing a claim. Intuit’s “Freedom Edition”, also called the IRS Free File Program, allowed anyone who had an adjusted gross income of $36,000 or less and was eligible for the Earned Income Tax Credit or was on active military duty and had an AGI of $69,000 or less to use the product to prepare and file their taxes for free. Income restrictions: In 2002, Intuit agreed to provide low-income Americans and active-duty servicemembers the option to file their taxes for free, according to California’s Attorney General Rob Bonta. Who qualifies? Eligible TurboTax users include those who paid to file their federal tax returns in tax years 2016, 20, but were actually entitled to a free filing system through the IRS’ Free File program. Here are some common questions and answers regarding the settlement … (Photo by Tasos Katopodis/Getty Images for Economic Security Project) WASHINGTON, DC – APRIL 17: Advocates gather in Washington, DC to call out tax prep companies like Intuit TurboTax and H&R Block for blocking simplified filing and to support Internal Revenue Service (IRS) exploration of alternative free tax filing on Apin Washington, DC. Intuit also used paid search advertisements to redirect consumers who were looking for the IRS Free File service to the TurboTax “freemium” product. According to the Office of the Attorney General, the company used “confusingly similar names for both its IRS Free File product and its commercial “freemium” product.” An investigation into Intuit’s practices determined the company used several deceptive and unfair practices, limiting tax filers’ participation in the IRS Free File Program. New York’s Attorney General Letitia James said Thursday that eligible TurboTax users will get an email about their settlement and checks should arrive throughout May.Ī year ago Saturday, Mountain View-based Intuit agreed to pay millions for tricking millions of low-income tax filers into paying for services that should have been free.Īll 50 states and the District of Columbia signed the agreement. In California, an estimated 370,000 low-income TurboTax users will share about $11.4 million from the settlement. At least 4.4 million TurboTax users are getting a refund this month under a $141 million multistate settlement with parent company Intuit.
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