Intuit $141M settlement overview:
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Who: Intuit agreed to pay $141 million to resolve claims from a coalition of state attorneys general.
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What: The state attorneys general claim that Intuit unlawfully charged some consumers to file their federal taxes when, based on their income, they were eligible to file for free through the IRSโ Free File Program.
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Where: TurboTax customers around the country are eligible for the settlement.
UPDATE:
- This class action settlement is paying out up to $29.30.
- Congratulations to everyone who filed a claim and got paid!
Intuit agreed to a $141 million settlement with a coalition of state attorneys general to resolve claims it charged TurboTax customers for services that should have been free.
The settlement benefits consumers who paid Intuit to file their federal tax returns through TurboTax for the 2016, 2017 and/or 2018 tax years, but who should have been allowed to file their taxes for free through the IRSโ Free File Program. Around 4.4 million consumers across the country are eligible for relief under this settlement.
New York Attorney General Letitia James partnered with several other state attorneys general to investigate Intuitโs โfreeโ TurboTax marketing. According to state authorities, Intuit deceived consumers into thinking they could file their federal taxes for free. In reality, TurboTax allegedly charged for filing their taxes โ even when customers qualified for the IRSโ Free File Program.ย
The IRS Free File Program allows consumers to file their federal taxes for free if their annual gross income is less than $73,000.
The $141 million settlement resolves the tax fee allegations and includes all 50 states and the District of Columbia.
โToday, every state in the nation is holding Intuit accountable for scamming millions of taxpayers, and weโre putting millions of dollars back into the pockets of impacted Americans,โ James told CBS.
Under the terms of the settlement, eligible consumers can receive a cash payment based on the number of tax years they qualified for the IRSโ Free File Program but paid to file their taxes through TurboTax. According to the settlement website, individuals are expected to receive between $29 and $30 in payments.
No action is required to benefit from the settlement. Eligible consumers who were notified of the settlement via email will automatically receive a payment without needing to submit a claim, pay money or provide account information.ย
In addition to providing payments to affected consumers, Intuit agreed to suspend TurboTaxโs โfree, free, freeโ advertisements.
The Federal Trade Commission (FTC) also took legal action against Intuit, seeking a temporary injunction to block the company from advertising its filing services as โfree.โ The FTC argued that, without an injunction, Intuit would โbe free to continue disseminating the deceptive claim that consumers can file their taxes for free using TurboTax when, in truth, in numerous instances, [Intuit] does not permit consumers to file their taxes for free using TurboTax.โย
The injunctive relief provided from the settlement serves the same purpose as the FTCโs proposed injunction by ensuring that consumers are not misled by deceptive advertisements.
Were you charged for using TurboTax when you qualified to file for free? Let us know in the comments below.
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440 thoughts onIntuit agrees to $141M settlement over allegations it improperly charged certain consumers for TurboTax
Yes I did, the following year I used freetaxusa.com learned my lesson, but they should pay us our money.
Ok people, put down the pitchforks and go back, and especially next time, check the fine print YOU SIGNED. I am a victim of Intuit as well, and as of this year I gave them the harshest punishment little me could give them, I stopped using them, EVER, and told everyone I knew and could what they did to meโฆ.(the local Turbo Tax office actually left a message to my phone warning me that โif you do not stop telling lies to our customers, we will have no other recourse than to initiate legal action against youโ HA, I am filing a lawsuit for intimidation in response.
I filed 2017 2018 2019 and 2020 and I had to pay for all of my TurboTax
Iโve had to pay every year. I noticed a couple of years ago they started charging me seperatly for State taxes.
Turbo tax this year charged me $396 for doing my taxes and took it out of my federal refund and just now sent me a. Bill saying that I still owe them the $396 to turbotax they drafted it. Out of my. Checking account is that even legal paid 3 times the amount I should have paid twice. This is the 2nd year theyโve done this. I make forty eight thousand dollars a year simple ten ninety return please advise
I have always been charged.
I was lucky not to pay because I knew it was a free program. I disconnected my account.
Have been filing for several years and have always been charged for my feds, even though our income levels qualify us for free!
I have been using Turbo tax for a few years and always choose free but get charged
I was charged by turbo tax to file my taxes
Yes I was